News

Ask SN: I'm in a (very) aggressive sales funnel with a SR&ED consultancy. Not planning on working with them -- not a fan of greasy sales processes -- but I am interested in meeting with a great firm.

Is anyone comfortable sharing names of great consultants you've enjoyed working with? Preferably Toronto-based?

(Sorry if this has been discussed at length elsewhere.)
... See MoreSee Less

Sean Power and Davender Gupta like this

View previous comments

Leif BaradoyRevenue Canada is increasingly penalizing and auditing tech companies, particularly ones that use a SRED consultancy.

22 hours ago

3 Replies

Avatar

Chris MaedaI thought everyone used E&Y, or is that so 2014?

22 hours ago
Avatar

Alex BlackTalk to Paul at www.getgrants.ca/

22 hours ago   ·  4

2 Replies

Avatar

Tom WilliamsTotally second Leif's feedback here. Don't work with outside consultants. Get your financials prepared by any accountant and do the application internally.

22 hours ago   ·  2
Avatar

Adarsh PallianWe used www.revenueservices.ca 2 years in a row and both times we got our SRED money in less than a month. They seem to have the best reputation with the CRA and won't take you on as a client unless you qualify. They also claim to have a 100% success rate. May be worth talking to them.

22 hours ago   ·  2
Avatar

Akhil GuptaFollowing. Thanks for the info everyone.

21 hours ago
Avatar

Mark MacLeodCRA is cracking down - especially on web apps. For that reason alone, the right consultant can be helpful. The Flow Ventures team has a great track record here. I can intro you www.flowventures.com/

21 hours ago   ·  8

2 Replies

Avatar

Jevon MacDonaldWe (founders) need to shift our SR&ED thinking from competitive must-have to nice-to-have. SR&ED consultancies are rent seekers who do not have your companies' best interest at heart. There are founders who disagree with me (I've seen Allen Lau beautifully articulate how to use SR&ED as an advantage) but for me it's just too much cognitive dissonance to focus resources on early in the life of a company. Instead I think of SR&ED as a growth-powering tool, not a seed-startup funding strategy. For that reason I spend time getting to know the local NRC team and make sure they know what we are doing and the challenges we are tackling. 20% fee + lost time (consultants reduce complexity but I've rarely seen them effectively remove the management burden) + increased risk of an audit = not worth it to me.

21 hours ago   ·  3

4 Replies

Avatar

Claude G. Théoretone name Peter Bailey and Raymond Luk

20 hours ago   ·  1
Avatar

Claude G. Théoretwell that's two names

20 hours ago   ·  1
Avatar

Ian Andrew BellI think that the risks of IRAP are overblown in general, as in practise NRC has never intervened in a company exit (or even a move) despite their rights. They don't want to be seen as impeding companies. However, SR&ED is the least understood and therefore the most manipulated of these programs. I myself lost a company on the rocks of a ruthless SR&ED audit, and where ultimately we appealed the decision, which cost us 80% of a $300,000.00 SR&ED claim, the CRA acted as judge/jury/executioner and wilfully killed us despite our obvious innovations. EBC is pretty easy-going in British Columbia, as well.. and is always undersubscribed. It's not a well-understood program but from the government's perspective seems to be largely fire-and-forget. SR&ED needs to be reformed and defined under law, or scrapped. I agree it is massively abused, but the audits more frequently punish vulnerable startups than they catch culprits.

20 hours ago   ·  1
Avatar

Ted GrahamI'd like to hear where you net out this since I'm actively looking at our own approach.

20 hours ago
Avatar

Peter McMathWe've always used our accounting firm. They take a % of what we get back, and they take nothing if our claim does not get approved.

20 hours ago
Avatar

Aram MelkoumovWe use KPMG, and submitted out claim a month ago and got approved last week. Having our FTACS next week. Didn't pay KPMG anything upfront, just a percentage if we get a return approved. Great and very smooth experience.

18 hours ago
Aram Melkoumov

Aram MelkoumovI've heard good things about Flow Ventures as well but never worked with them directly.

18 hours ago
Aram Melkoumov

Dominic BortolussiWe've used and loved working with Alexei and Khalid at MobileCapital , there is always the option to use a bit of help and file it with your accounting team. We've been audited and it worked out fine in the end... Just took awhile.

15 hours ago   ·  1
Dominic Bortolussi

Ryan LazanisHi Heather, I'm the founder of Xen Accounting, a Canadian online accounting firm. We have partnered with Flow Ventures (recommended above) as we feel that there are 2 parts to a successful SR&ED claim (the technical writing and the financial/tax component). Flow handles one aspect, we handle the other. Flow have an excellent reputation. Feel free to PM me with any questions :)

4 hours ago   ·  1
Ryan Lazanis

Richard ReinerHonestly, if you can read and follow simple instructions and can write a couple of pages of text, there is no reason you can't write your own SRED claim. I've done it about a dozen times in my various companies. All were paid out in full. One was audited (a 1.5 day visit to talk through the claim and look at some documentation) before they paid. This is not rocket science, folks, nor is it very time-consuming -- you can, and perhaps should, do it yourself.

2 hours ago   ·  2
Richard Reiner

Comment on Facebook