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A Dynamic Entrepreneur Success Story: SR&ED Tax Credits
Sixty per cent of companies that are investing in innovation do not file for SR&ED tax credits – because they don’t even realize they’re eligible.
Since the company started in 2005, Berkeley Payment Solutions has experienced explosive growth of over 300% each year. As the largest issuer of corporate prepaid VISA cards in Canada, Berkeley boasts such Fortune 1000 clients as Bell Canada, Nissan, Rogers, LG Electronics and Canon, to name a few.
While partners Dave Eason (CEO) and Jonathon Hamburg (COO) have made great progress in dominating the prepaid incentive card market in Canada, they admit that when it came to Scientific Research & Experimental Development (SR&ED) tax credits (for modifying or creating new products, processes, technology or equipment), they were in the dark.
“The SR&ED process was like a black box to us,” says Hamburg. “We had looked at SR&ED before, but had not made a claim, based on the advice of our previous accounting firm. They didn’t think we had enough SR&ED activity to make a claim worthwhile.”
Eason and Hamburg took advantage of SBLR’s free consultation to investigate their situation further. As a result, Berkeley Payment Solutions has since made several successful claims that were all accepted as filed, thereby increasing the company’s working capital and cash flow.
“The substantial SR&ED refunds have allowed us to make capital investments into new equipment,” says Hamburg. “We continue to improve our systems and processes and are looking to expand into other market segments which will make us eligible for future tax credits as well.”
“SBLR unlocked the mysteries behind filing our claim,” says Hamburg. “We’re grateful to SBLR for helping us recognize an opportunity that we otherwise would have missed. After our first claim, it was only natural that we became an accounting client of SBLR, too.”
