If you already know that research and development is a vital part of your business and submitting a Tax Incentive claim is on your annual to-do list, maybe it’s time to change your perspective and start planning your business activities through the R&D lens and include your Research and Development and potential R&D Tax Incentive claim in your next cash flow forecast.
How to include R&D in your cash flow forecast
R&D is inevitably associated with uncertainty and unpredictability making it seem near impossible to account for in your next year’s cash flow forecast. However, documentation is key! If you aren’t doing it yet, we suggest thoroughly documenting your R&D activity – from time, all the way to resources invested, it should all be documented. This will help you understand the potential expenditure on your R&D activity next year and be beneficial if you want to claim the R&D Tax Incentive.
If you have already previously applied for the R&D Tax Incentive claim, you can luckily use that information to help you navigate your next year’s cash flow forecast and the potential expenditure you will need to account for.
However, if you are hoping to include your potential R&D Tax Incentive claim in your cash flow forecast, ensure you know if you qualify and how much you get back to avoid (costly) mistakes. We can’t stress this enough, but starting your claim early in the planning stage will allow you to capture information in real-time, and help deliver a smoother and more efficient claiming process. A last-minute scramble for documentation isn’t ideal for anyone!
How Clearpoint Ventures can help
If you believe your company could benefit from increased cash flow for R&D activities, Clearpoint Ventures is here to help. Our R&D Tax services are designed to identify opportunities sooner and maximise your financial outcome. Let our expert team of R&D Tax professionals take you step-by-step through the process to get a better return, stay compliant and maximise your claim.