Many companies don’t know that there aren’t any restrictions on what their SR&ED refund may be used for. The allocation methods described here are suggestions that will most likely put your company in a better position to grow:
- Scale up
One way to invest the funds you receive from the SR&ED Program is by using it to expand or scale up the business. Whether you expand the business by adding salespeople, adding more locations, increasing the scope or number of products and/or services the company offers, or any other idea, this free money received from the Canadian government offers a risk-free method of doing so.
- Grow Your Marketing and Sales
Irrespective of whether you have just started out or are an established participant in the industry, marketing and sales are always a crucial key to growth. Effective sales and marketing campaigns have the power to attract new customers, reinforce your brand and positioning, generate demand, and communicate your message. Determining the amount to reinvest into your marketing and sales budget. Calculate the net profit by subtracting the expenses from the gross profit and determine ROI by first subtracting net profit from the marketing investment and then dividing the answer by the marketing investment.
If you reinvest into your marketing and sales, utilize creativity and solid planning, and focus on measurement, this will put the company in a much better position to achieve success.
- Reinvest in R&D
The most popular way for a company to spend the refund from an SR&ED claim is to plow it right back into R&D. Reinvesting this capital into R&D, whether you hire more staff or invest in technology and materials, may increase your SR&ED refunds in future years.
Find Out How Much Money You Can Recover From The CRA
Book a conversation with one of our SR&ED tax credit experts.
Fill out the form to schedule a conversation, where we can help identify:
- What projects qualify and which R&D expenditures are eligible
- An estimate of the total return you can expect
- How to maximize the size of a claim & and to optimize for the success of that claim
- Potential eligibility for additional Government funding programs
- If you are already claiming, we will analyze your past claims to determine if anything was missed