The essential role of Timesheets for your SR&ED credits
The essential role of Time Sheets in obtaining SR&ED credits?could not be more strongly emphasized as the CRA has increased its technical audits in recent years.
It should be noted that a timesheet software is an essential tool for any service company. Even more, experienced managers consider their Timesheets as the cornerstone of their business.
More than ever, time management and billing issues are one of the main obstacles to the growth and profitability of service companies. It is one of the most important business functions, as essential as payroll, accounting or project management.
Recently, as part of its new technical audits, the Canada Revenue Agency (CRA) has focused more attention on certain critical expenditures; namely, the reasonableness of salaries charged to research and development activities.
In particular, the CRA routinely conducts a?comprehensive timesheet?analysis.
However, the fact is that the case law in this area demonstrates that providing?explicit and detailed timesheets?is an almost infallible method of unequivocally justifying eligible SR&ED activities.
Consequently, providing only a time estimate of the R&D activities entails a high risk of either revision or refusal of the claimed credits, putting the burden of proof entirely on the company.
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Improve your work processes with a Timesheet software
Time tracking allows both managers and employees to improve the way they work, resulting in increased productivity and profitability.
With accurate data in hand, you can improve many processes:
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Ensure sound billing with Timesheets
Time tracking is essential for any service business. There is often a fine line between a profitable project and a loss-making one. You don’t want to underestimate the time it takes to complete a project, nor do you want to over-bill your clients.
Enhance projects profitability with Timesheets
To keep your business profitable, you need to determine your costs and calculate the number of hours spent on each project.
Improve pricing with Timesheets
Adapt your billing rate according to the tasks performed or according to an employee rate or even according to a customer rate.
Improve estimates accuracy
Your library of projects will also allow you to better estimate the time required to complete a project.
Improve employee management; thanks to Timesheets
Time tracking will give you a precise idea of the productivity of your teams and employees.
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Conclusion
Time tracking is essential for projects review (post mortem) with clients, and to improve expense management and resource and process management, in general.
And now, your timesheet software will be your insurance policy in the process of claiming SR&ED credits from the CRA.