SR&ED – Your Accountant’s Blind Spot Could Cost You Money

There’s a big difference between what your accountant sees and what a SR&ED engineering specialist would see.

For example, an accountant would look at something you had produced and quantify according to his/her knowledge of that particular thing. Let’s use an example of a specific component of something that is part of  a larger process or product.

The accountant will see the component for what it is, and value it based on the parameters of the costs associated with it.

The SR&ED engineering specialist will look at that component and immediately recognize the opportunity to break that component down into many processes/procedures.

So your accountant may quantify the component as 1 process and one set of materials. The SR&ED engineer will take the same component and split it into 10  different (and complex) processes and components.

In the end the more processes and materials exposed, analyzed, and documented, the more materials used, hours spent, and the higher the claim.

Some SR&ED engineers are increasing their clients claims by as much as 250% over what the accountant has claimed

The reason for this is that every SR&ED claim is 15% accounting, and 85% technical. So it’s a good idea to supplement your accountant’s knowledge with someone who has done the technical aspect of a claim for other companies like yours.

And it pays to engage someone who can “see” the opportunities in every bit of research and development you do.

So keep your accountant on board with all of your SR&ED activities, obviously he/she knows your business best. But have a SR&ED engineer manage the technical part of the claim. That way you will benefit with the expertise of both.