Launching a new venture is no easy task. Capital is difficult to secure, sales troughs drag out and bills pile up fast. Should your start-up be in the process of improving or developing a new product or process, CRA is on your side. Applying for the Scientific Research and Experimental Development (SR&ED) Tax credit will allow your business to recover between $0.41 and $0.68 cents on the dollar of related eligible expenditures.

The importance of the SR&ED incentive, as a driver of innovation in Canada, cannot be overstated. This generous subsidy is often referred to by entrepreneurs as a crucial factor to their survival, particularly in the early years of their venture.  However, the application process can be a difficult and time consuming matter, and although there is no limit to SR&ED refunds, receiving your cheque can take a few months. On occasion, this can be a few months too many.

Enter Espresso Capital. Provided that your company meets their criteria, Espresso Capital will extend you a loan collateralized on your expected SR&ED refund. Once a business qualifies, the turnaround on the loan is rapid, usually from 5 to 10 days from the date of application. SR&ED financing is intended to provide funding assistance to businesses in need of interim capital to meet their short term financial obligations.

RDP Associates Inc. is proud to endorse Espresso Capital in their efforts to further assist clients in need of generating positive cash flow now.

News Flash! NextMedia + Banff aim to bring together some of the best and brightest minds for some friendly competition.

The event will play out in two separate categories. The Digital Hot List is open to all developers, content producers, and digital superstars working on inspired content proposals, innovative new technologies and outstanding web development. Furthermore, the iPad and Tablet Competition promises a $25,000 development deal for the winning concept and the five finalists will have the opportunity to showcase their ideas live at the Banff World Television Festival.

Deadlines for submission are approaching quickly, May 12^th and 14^th respectively.

Don’t miss out on this opportunity to gain some great exposure.

Documentation is paramount. We cannot stress this enough. Lack of proper and complete documentation is the number one reason why Scientific Research & Experimental Development (SR&ED) claims are audited by Canada Revenue Agency (CRA). Canada has one of, if not the most generous, R&D Tax incentive programs in the industrialized world. Great news for business owners, bad news for their accountants. Due to the generosity of the program, appropriate documentation that substantiates that eligible SR&ED costs were incurred, is now more than ever, a requirement when applying for SR&ED Tax Credits.

Not too long ago, RDP came across a prospective client who intended to file a SR&ED claim for a project whereby no documentation was available to support the claim. The client wanted to back date the information, expecting RDP to turn a blind eye, arguing that he knew of other SR&ED Consultants who worked this way on regular basis. In spite of our efforts to the contrary, this particular individual underestimated the degree of risk inherent in their decision. In the event of an audit, the SR&ED return would likely be cut back, and the company is sure to be scrutinized by the CRA in the future. In other words, triggering an audit will not only affect the current SR&ED claim but also any claims filed subsequent to it.

Demonstrating a thorough understanding of what constitutes eligible SR&ED work is the best defense against an audit. Establishing a detailed and comprehensive documentation process will amount to a very strong claim and will dramatically increase your chances of being viewed more favorably by CRA’s Research and Technology Advisors (RTA’s).

R&D and prosper…