Holistically Incorporating SR&ED to Your Funding Plan

SR&ED is not the only government funding approach or program that Canadian companies should use when building a government funding plan. To be a successful company, Canadian businesses should understand how to successfully navigate the Canadian funding landscape to ensure all bases are covered and a 360-degree funding plan has been implemented.

Is the program proactive or retroactive?

Business improvement projects can be offset by Canadian government funding programs. Funding programs can be leveraged strategically for many growth and investment-oriented projects. Your funding options are always determined by projects and ongoing business activities. It is important to optimize funding potential and reduce financial risk; businesses need to develop a holistic funding plan.

Funding programs typically cover one or more of the following:

  • Salaries
  • Third-Party Contractors
  • Project Management
  • Capital Equipment
  • Software
  • Training
  • Certifications
  • Retrofitting and Construction
  • Travel
  • Freight
  • Installation Costs
  • Hiring

There are four common business activities that government funding projects support:

Government funding programs can be either proactive or retroactive. Proactive programs, like grants and loans, are applied for before a project begins. Retroactive programs, like tax credits and incentives, are claimed once a project has started or finished.

Successful companies understand that to be successful, they must learn how to combine both proactive and retroactive funding programs together to maximize project coverage. Whatever you do, avoid being “Reactive” with your funding plan. Reactive companies fall into the near-sighted habit of applying for programs just prior to a project start where they often run into risks like not meeting program deadlines.

All management teams use a combination of proactive and reactive strategies to finance their operations.

The key to optimizing your financial strategy is to use more proactive strategies than reactive ones.

To determine if your organization is more proactive or reactive, consider:

  • Do you have a clear goal for your business?
  • Do your projects have well-defined timelines?
  • Do company executives agree on strategic direction?
  • How do you compare to industry key performance indicators (KPIs)?
  • Does it feel like your organization is achieving its full potential?