Why Hire an SR&ED Consultant? 

Author: Bikram Johal, President of Banhall Consulting ltd.

Technical reports, R&D documentation, expenditures, financial spreadsheets, all this information is critical to file a successful SR&ED claim. While the CRA plays a pivotal administrative role in defining eligibility criteria, it is still a complex program to grasp. Many companies have submitted claims that have great potential for approval. But they were denied because of mistakes, lack of detail or not fully understanding what they needed to do. 

An experienced SR&ED consultant can help companies manage the process and file your claim the right way.  

Benefits of hiring an SR&ED Consultant

There are many benefits to hiring an SR&ED consultant. Firstly, a consultant can provide an expert opinion or assist a company that does not have the resources or accounting expertise to address the complexities of the tax incentives. Secondly, these consultants know what the CRA wants to see and how best to present a strong argument for their clients’ claims. They can guide you through all the important guidelines of the application process. 

As experts on the program, a SR&ED consultant can take an educational approach while working with you on your claim. They can help you understand what is and is not SR&ED eligible and answer any complex questions you may have. Often, it is getting to know the critical dos and don’ts that can be the deciding factor of whether your claim gets approved or denied. They can often see specific aspects of your claim that you don’t, which can help ensure that you get every dollar you deserve from your refund.  

Audit Security

While this should put your mind at ease when filing your SR&ED claim, what if you get audited? While it is far from a sure thing, 10%-20% of all claims are audited each year. An SR&ED consultant will also help clients prepare for a technical or financial audit. Ideally, they will help you take steps to prevent common mistakes or pitfalls to avoid getting audited altogether. 

Are you considering engaging an SR&ED consultant to file your next claim?

Here are some factors to consider during your hiring process: 

  1. Experience: Narrow your search to consultants with extensive industry knowledge in emerging technologies. 
  1. Proven Success: Focus on choosing a consultant with a proven ability to apply a systematic approach to their client’s claims. Also, keep an eye on their record of successful claims, ideally over 90% success rate.   
  1. Relationship Building: Continuity is key, so look for a consultant that is a great fit and can form a long-term relationship with your R&D team. 
  1. Cost-Effectiveness: Many companies that file an SR&ED claim by themselves cost themselves additional money by not claiming everything they are entitled to, such as support work and process development. An SR&ED consultant can help ensure that money is not being left on the table. 
  1. Comprehensiveness: Go with a consultant that will be thorough when they work on your claim and provide the service that suits you best. You do not want a consultant that looks at your fee as a formula to determine how much effort to spend on your claim. 
  1. Reputation: Choosing an experienced, reputable SR&ED consultant is only part of the battle. Working with a consultant who has a poor reputation with the CRA could be a red flag and could make it more likely for your claim to be selected for an audit. However, consultants who have an excellent reputation with the CRA can have a built-in trust with the auditors.  
  1. Services Offered: As you research which consultant to hire, take note of the services that each consultant offers. For example, some consultants require their clients to write their own reports, while others have qualified professionals’ interview and write the report themselves. Make sure you understand what is expected of you and your team and exactly what your consultant will do for you. 

Previous entry in the SR&ED blog series: What is an SR&ED Audit?

About Banhall Consulting 

Banhall Consulting LTD. was founded based on our passion for helping Canadian companies get the funding they need for their innovation to grow and thrive. Our dedication is helping companies with the SR&ED tax incentive program and how to navigate the complexities of the process and understand all   necessary guidelines. Our team has decades of combined SR&ED experience and has worked on 
thousands of SR&ED claims. Our financial and technical experts have the versatility to assist companies in various industries in all areas of their SR&ED claim. Combining this experience and knowledge with our detailed-oriented methods has allowed us to achieve proven results with a 96% success rate on SR&ED claims. 

Your Business. New Heights. 

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