Dymergent Inc.

In today’s busy business environment, it’s common to hear company leaders say, “We don’t have time to do research.” When client demands, deadlines, and day-to-day operations are pulling your attention in every direction, carving out time for research and development (R&D) can seem impossible. But what if there was a way to take advantage of moments when your employees aren’t fully engaged in core tasks to drive innovation? Even better, what if there was a way to bring in considerable revenue for those efforts? Welcome to the opportunity hidden within the SR&ED (Scientific Research and Experimental Development) program. The SR&ED program is a cash refund program provided by the Canadian government, aimed at rewarding businesses for conducting R&D activities. Many companies mistakenly believe that SR&ED only applies to major research projects in industries like biotech or high-tech. In reality, almost any industry can benefit, whether it's improving a manufacturing process or solving software challenges. Best of all, much of the work that qualifies for SR&ED tax credits is often already happening within your organization—it’s just a matter of recognizing it and documenting it properly. https://lnkd.in/gnivAZW6

Leaving Money On The Table For Canadian small businesses, innovation isn't just a pathway to growth—it's essential for survival in a highly competitive landscape. However, many business owners overlook one of Canada’s most powerful tools for supporting innovation: the Scientific Research and Experimental Development (SR&ED) program. SR&ED is designed to provide cash incentives for businesses conducting qualifying research and development activities, but countless companies are leaving money on the table by not taking advantage of it. Not only does this mean lost financial support, but it also puts these businesses at a competitive disadvantage compared to those leveraging SR&ED to fuel growth. Read more below. https://lnkd.in/gFXBcK9m

Just because you don't have an R&D department doesn't mean you can't get research money. While many think that only companies with dedicated R&D departments can benefit from research grants, this couldn’t be further from the truth. In fact, many small companies that innovate or are willing to innovate can benefit from SR&ED, even if they don't have formal research divisions. Small companies across Canada are often innovating without even realizing it. Whether it's tweaking a product, improving a manufacturing process, or developing new software, all of these activities can qualify for SR&ED credits. Even if your business doesn’t have the resources to establish an R&D department, if you can point to areas where you’ve taken a systematic approach to solve technical challenges, you’re likely eligible. Any company that makes anything can innovate and receive SR&ED funding. Whether you're developing new ways to be environmentally friendly in a food business, creating new technology to facilitate your processes in a manufacturing company, or building prototypes involving scientific uncertainty for a new product, all of these activities could potentially qualify for SR&ED credits. The key is experimentation, and any company, regardless of size, can experiment with new ideas. Read more below. https://lnkd.in/gKYnVAey

What happens if you file a SR&ED claim without a PCC? In a recent article, we detailed why you should get a PCC (Pre Claim Consultation) to support your SR&ED Claim.  In this article, we'll detail what happens if you ignore that advice and file without a PCC.  tl;dr: it's quite possible nothing will happen.  Many SR&ED claims are filed without a PCC and, if the documentation is done and the guidelines are followed, they are often successful.  Now let's talk about what could happen. https://lnkd.in/gux-R6zQ

Of all the SR&ED claims filed each year, very few are supported by a CRA Pre-Claim Consultation (PCC). This free service offered by CRA gives businesses a chance to present their SR&ED projects to the CRA prior to filing a claim in order to get an assessment of whether the CRA examiner believes the claim qualifies for SR&ED. The advantages of getting a PCC are significant. A PCC showing a positive outcome pretty much guarantees you that your work meets the basic requirements of an SR&ED claim. If you do the work you say you're going to do, and you file the claim within the terms permitted by CRA, you should get the money you're expecting. You can undertake your work reasonably sure that you are not wasting time and effort. The disadvantages are simple. It's a lot of work to get a PCC and your SR&ED consultant probably doesn't want to do it. Read more below. We'll talk you through the entire process.

The Three Types of SR&ED Consultants Many companies seeking SR&ED consultants to assist with obtaining research grants quickly realize there are three types of consultants, and their fees vary significantly. Accounting Firms These offer SR&ED services as part of their annual T2 filing. Year-End Filers These work with companies for a short period at each year-end to write up the previous year's work as a T661 SR&ED filing. These are not usually accountants but are documentation specialists who work with the client's accountant at year-end. Full-Service SR&ED Consultants These work with their clients throughout the year, brainstorming about projects, keeping documentation, and working with staff to ensure that data is recorded correctly and to the standards required by CRA. Rather than being accountants, they are science and documentation experts who work with the client's accountant at year-end. We've prepared a summary of these three types of SR&ED consultants, along with a rough range of pricing that they generally charge, and the pros and cons of using each. https://lnkd.in/gKDtWyBJ

Many companies find themselves with a skilled workforce that spends a significant amount of time waiting for things to happen. I don't mean concurrent downtime—it's rare for an entire workforce to sit idle at the same time. However, each worker likely has an hour or two (or more) in the day, perhaps ten hours a week, where they simply can't proceed to their next task until something else occurs. Almost every manager has noticed this, and many have wondered how they could leverage some of that downtime to the company's advantage. It's a complicated problem. Workers need some downtime—almost no one can focus on work for eight hours straight. Everyone requires a bit of time between tasks to rest and recover mentally. However, too much downtime can lead to bad habits. If workers find themselves with two or three hours of idle time, they'll find ways to fill it, and those ways are rarely beneficial to the company. If they become addicted to these time-fillers (usually a social media app or a game), they may start compromising their high-demand work time with these electronic distractions. Striking a balance between too little and too much downtime is the challenge every manager faces. The Government of Canada's SR&ED program offers one way of addressing this challenge. The Canadian government seeks to encourage innovation, research, technological advancement, and the development of competitive advantages among businesses in the country. To achieve this goal, they created the SR&ED program. Through SR&ED, companies can undertake research projects during worker downtime and receive substantial wage subsidies from the government for doing so. It is not unusual for a company with ten employees to receive $200,000 or more per year, with no major cash outlay beyond what they were already spending on labor. Dymergent can help these companies identify a research project that fits seamlessly into their workflow without disrupting the core business, ensure it is positively assessed by the CRA to avoid wasted effort, manage the project throughout the year, and prepare all necessary paperwork for the accountant at year-end. All of this is done on a pay-for-success basis, minimizing risk. SR&ED is a highly effective tool available to Canadian-Controlled Private Corporations to help address the issue of workforce downtime.