Surviving through the economic downturn

If your business relies on investments, you have probably noticed that they are harder to come by than before. Plus, you probably feel like your customers are tightening their belts and minimizing their current budgets.

Developing a strong business foundation requires a unique ability to survive economic downturns and a lot of energy to prevail at their peaks. And surviving could mean a lot of things, like keeping your workforce, which you selected and trained so hard over the last few years, maintaining strong visibility by withholding your marketing complaints, or simply paying your bills. One way or another, you may start to simply think “outside the box,” looking for alternative sources to keep your cash flow intact.

As in almost all situations, information is the key to success. One source of government funding is a federal SR&ED tax credit program, which is the largest source of government support for companies developing new or improved products or processes.

The Canadian tax credit system is not limited to any particular industry sector and can be effectively exercised by software and hardware vendors, as well as corporations involved in manufacturing and production.

So how can businesses benefit from applying for SR&ED tax credits?

Generally, private corporations controlled by Canada obtain a check from the government, which can significantly exceed the initial expectations of business owners. The amounts depend on the nature and types of expenses that are directly related to your R&D activities.

Such expenses can include salaries of your technical staff, costs of outsourcing, costs of materials and equipment, and even the salaries of your top-level management.