Time tracking for your SR&ED tax credit application

June 20, 2021

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Since your tax credit is calculated as a percentage of the salary/money spent R&D, the CRA is looking for a clearly detailed outline of how much capital was spent and whether your documentation supports your claim. All employees involved in R&D should track 100% of their time as well as separate SR&ED and non-SR&ED eligible activities.

This will ensure that the percentage of time spent on SR&ED is calculated accurately. You can take it a step further and set up the following time tracking categories for SR&ED eligible activities: WE RECOMMEND TRACKING 100% OF YOUR TIME. Development Testing Project Management Technical Analysis Technical Requirements Admin

Technical records Maintain records on technical challenges faced during development.

You should include details on experiments conducted, prototypes created, iterations, testing and analysis of test results. Include specific metrics as appropriate (i.e. performance was greater than 5 seconds, when the limit was 1 second; memory usage was X with only 10 concurrent users). This could be done weekly or bi-weekly. Version control for all technical documents

Use in architecture documents, design documents, as well as source code to track the evolution of the system. Include notes on technical issues when checking files into the version control system.

16 Ways to Improve Your Technical Documentation

It is much more time consuming to piece project documentation together after the fact and some teams may even miss their deadlines altogether because they just didn’t have the time to go digging for information. Here are a few ways to help you stay on top of your contemporaneous documentation: Software prototypes Save prototypes (possibly in the version control system) and include notes on the analysis of the prototype.

Test documents Save test cases, results and analysis. Include dates and who performed the testing. Developer notebooks Keep all handwritten developer notebooks. Have them include dates on the notes. Meeting minutes Include date, attendees, duration of meeting, point form descriptions of technical issues discussed.

Whiteboard photos Take pictures of software designs created on whiteboards and save with project documentation.

Emails Track email exchanges with labels when relevant challenges were discussed.