Is your business benefiting from Easly’s SREDLine? Here are three ways that you might consider allocating your SR&ED advance to better position your business for success — today and tomorrow.
Reinvest in your R&D
Companies that invest in additional R&D will see a bump in the year-end SR&ED refund that more than offsets the cost of the SREDLine. Lopping your capital back into R&D, can increase your SR&ED refund in the following years. Whether it is through hiring new talent, purchasing materials, upgrading equipment or technology, creating a consistent R&D loop should be a top priority.
Empower your CFO or Consultant
If you’re like most professionals, you want to use your SR&ED refund to scale up your business. One way to accomplish this is by empowering your CFO with a consistent SR&ED refund from Easly. The recurrent refunds will give your CFO more certainty when it comes to future cash flow for your company. If you don’t have a CFO, look for a consultant or full-time candidate whose experience goes beyond finance and includes a robust strategic planning background. You’ll want someone who can critically and objectively create a business plan detailing what your business is projected to achieve over the next year, the next five years, etc — and then be able to effectively and efficiently allocate the resources necessary to accomplish those goals.
Expand Your Investment Portfolio
Of course, any time you put money back into your business, it’s an investment. It’s vital to constantly reassess the age and function of your equipment, technology, infrastructure and other resources to ensure that your talent has what it needs to scale your business within the time frame you’ve set. This is one of the jobs that you can delegate to your financial consultant. So is investing in additional talent such as PR person or a marketing professional.
Consider investing in other ways in an effort to control costs, boost productivity or both. Purchasing a company that supplies a product or material that’s vital to your business, for example, could be a wise financial move. Another possibility is to allocate a certain percentage of your SR&ED refund to long-term investments that provide an income stream during lean times in the future.
What out-of-the-box ideas has your business considered for the allocation of its SR&ED funds? Which of the above suggestions is most likely to work with your organization and why?