How to choose the right SR&ED consultant for you
How to choose the right SR&ED consultant for you
Are you looking to hire a SR&ED consultant? Are you confused about how to file, track, or even begin your SR&ED claim? The claim process can be confusing, but with the help of a SR&ED consultant, it can be much smoother. This post will explain what to look for in a SR&ED consultant and some questions to ask as you search for the one right for you.
Key Steps to Identify a Qualified SR&ED Consultant
1. Ask for Referrals
One of the best ways to find a reliable consultant is by asking peers in your industry. If they’ve successfully filed SR&ED claims, they can offer valuable insights into their experience and the consultant’s expertise. Most SR&ED consultants appreciate referrals from their clients and are eager to set up meetings once connected. Some of the most reliable consultants come highly recommended by satisfied clients.
2. Review Online Presence
Spend time evaluating the consultant’s online presence. Here’s what to look for:
- Website Content: Read blog posts and articles written by the consultant’s team. Do they demonstrate a deep understanding of SR&ED, or do they seem superficial?
- LinkedIn Profiles: Check the LinkedIn profiles of key team members to assess their backgrounds and level of experience.
- Functional Links: Ensure that important links (like access to webinars, recordings, or downloadable content) are functional. Dead links can indicate a lack of professionalism.
- Social Media Engagement: Verify the team’s LinkedIn profiles. Active engagement and authentic interactions are positive indicators.
- Testimonials: Pay attention to the testimonials. If the names of supposed clients overlap with the company’s employees, or if the reviews seem overly vague or generic, they might be fabricated.
3. Conduct Thoughtful Interviews
When meeting a potential consultant, don’t hesitate to ask detailed questions. Here are some to consider:
- Success Rate: What’s your success rate, and how do you define it? A high success rate sounds appealing, but some consultants might inflate their numbers by only submitting easy claims.
- Client Testimonials and Case Studies: Do you have testimonials or case studies from satisfied clients? Specific case studies speak to real results, not vague promises.
- Experience: How long have you been in the SR&ED business? Experience counts. A consultant with a track record in handling diverse claims is often more reliable than one relying on flashy marketing.
- Services and Fees: What specific services do you offer, and what are your fees? Be wary of consultants who refuse to provide transparent pricing.
- Audit Support: Will you support me in the event of an audit or review? A solid consultant stands by their work and should assist you through the entire process, including any CRA reviews or audits.
4. Take Advantage of Complimentary Consultations
Many consultants offer complimentary consultations. This initial meeting is a chance for you to get to know one another and for the consultant to broadly gauge if your work is SR&ED eligible.
5. Look for Red Flags
Watch out for warning signs. If a consultant promises guaranteed results, insists on using “proprietary” methods they can’t explain, or seems evasive about their pricing structure, consider it a warning to move on. Transparency, professionalism, and knowledge should be your top priorities.
6. Carefully Review the Contract
Once you’re ready to sign with a consultant, ask to see the contract first. Read it carefully to ensure there are no hidden fees or surprises. The contract should protect both you as the client and the SR&ED consultant. For example, a 2014 Tax Court of Canada case involved SR&ED consultants and their client where the contract did not state that all SR&ED tax credits would be handled by their firm or that the consultants would receive compensation from every SR&ED claim filed that year. ( For a detailed analysis please see our article. ) Make sure the contract clearly outlines the terms and conditions to avoid similar issues.
Bottom Line
By following these steps, you can find a qualified SR&ED consultant who will help you navigate the complexities of the SR&ED claim process, ensuring a smoother and more successful experience.
If you are still wondering why using a SR&ED consultant could help you? Check out our article on Why you should use a SR&ED consultant.
For more information on filing SR&ED claims please see the CRA website or reach out to our our parent firm The InGenuity Group. We are happy to meet with you.