Post about "Management"

SR&ED Tax Credit Financing – The Only Two Things You Need to Know About SR&ED Finance

SR&ED Tax Credit Financing is somewhat misunderstood, or in fact not really considered by many Canadian business owners and financial managers in Canada. We use the word ‘considered ‘simply because many SRED claimants are not aware that their SR&ED claims can be financing as soon as they are filed – in some cases prior to filing!So let’s return to our topic – what are the two things you need to know about financing your SRED tax credit. We’ll keep it simple -1. You have to have a SR&ED claim to obtain financing for the claim!2. A SRED financing claim is in fact similar to any business financing application – frankly it’s quite simpler and more focused!Is that it? Yes, it’s as simple as that. SR&ED tax credit financing is one of the most unique ways to bring valuable cash flow and working capital back into your firm. Just the very nature of SRED itself suggests that your firm relies heavily on the credit to recover the capital you have spent under the government’s quite generous non repayable grant.So let’s return to our point # 1 – to finance a claim, you need a claim. The SRED program in Canada is the governments rebate; in effect it’s a grant, back to Canadian business for any investment you make in research and development. More and more information is coming out everyday from government and private sources which suggest that many firms who are eligible for the program either aren’t aware of it, or even more disappointing, don’t know how to go about preparing and filing a claim. We are often amazed when some clients infer that it’s ‘too much trouble ‘to prepare a SRED claim.A couple of points can be made on this subject. We have met a small handful, and we repeat small handful! Of clients over the years who prepare their own filings. This of course is possible, legal, and in some business owners minds ‘cost effective. The hard reality is that most firms don’t have the technical and financial know how to complete a claim on their own. (Apologies to the firms which successfully prepare a file their own claims – you know who you are!)The majority of claims in the SRED area are prepared by what is known as SRED consultants. We tell clients that these consultants are high specialized, are up to date on current government SRED and accounting matters, and in most cases work on contingency – meaning that they prepare the claim at their own risk and time, and charge a fee which is totally based on success of the final claim approval. If Canadian business owners and financial managers don’t choose to pay a contingency fee then they can play a flat rate based on the SRED consultant’s time on the claim and filing. Naturally more often than not the SRED fee has to be paid as soon as the claim is completed, even if you still have to wait several months to a year to get your funds.More importantly, as it relates to the financing of the SRED claim, a claim tends to be more financeable when it is prepared by a reputable consultant in this area. And in fact when you claim is financed, either at time of filing or prior, the SRED consultant can also be paid in full or in part out of the financing.So the bottom line on our point # 1 is simply – make yourself aware of the program if you are not, prepare a solid claim with the use of a reputable consultant, and be knowledgeable that the claim can be financed during preparation or at time of filing.Let’s move on to point # 2- Clients ask, is it really that simple to finance a SR&ED tax credit. There is only one answer, which is of course yes. You should treat your SRED tax credit financing just as any other basic financing. Because this area of Canadian business financing is somewhat of a boutique are you should ensure you are working with a credible, trusted, and experienced advisor in this area.Let’s cover some of the very simple key basics around the financing of your claim. Most firms are eligible, under the program itself, to receive anywhere from 20-50% of your expenses in the R&D area. Your SRED claim will ultimately have a final value, which is made up of the federal and provincial portions combined. Let’s assume its 200,000.00 as an example. You and your accountant have filed your year end financials, and included a SRED claim of 200k. What happens now if you want to finance that claim. The reality is that you simply have to fill out a standard business financing application – just as if you were borrowing for any other matter. In our case the ‘collateral ‘, if we can call it that, it’s the SRED claim.Important to note hear that you are not incurring debt or creating a ‘ loan ‘ on the SRED – Your balance sheet stays intact, you are simply ‘ monetizing ‘ the SRED claim in order to generate working capital and cash flow now. Generally you receive approximately 70% of the claim as an advance, with the 30% held back and payable to yourself in full when you final claim is audited, approved, and that cheque from the government is ‘in the mail ‘! The financing feels itself, associated with the tax credit financing are deducted from that final 30% holdback. You can generally create a SRED loan for a period of a minimum of 60 days, but most SRED financing generally last from 3-12 months, depending on the size of your claim, its eligibility with CRA, and whether you are a first time filer.So whats our bottom line – it couldn’t be simpler:- Make yourself aware of this great program – prepare a proper claim with someone who is experienced
- If you are focused on cash flow and working capital needs consider financing your claim and directly monetizing this great program

Find Out The Top 11 Things to Consider Before Getting into eCommerce

The rise of eCommerce is staggering. There are 12-24 million websites selling products and services online With more added every day. This is a constantly evolving area that is constantly evolving, with emerging fashions continuously bringing customers with their online purchasing experience. Like brick and mortar stores the process of launching an eCommerce store requires a lot of careful planning and preparation in the pre-launch, launch and post-launch phases. The online store owner must take into consideration a range of elements and address a variety of questions prior to starting to go live with eCommerce.

Consider these factors Before Starting an eCommerce Store

Here are a few things you need to think about before you venture into the world of eCommerce. Be aware that in addition to these elements, you’ll also require a good brand name so that people will recall your name. Furthermore, the eCommerce software that you create must appear and feel premium to be able to stand out from the competition.

Deciding on Products & Services
There is a tendency to see businesses that are new to eCommerce start by resembling the success of other eCommerce models and services. This isn’t a good idea, as you’re unlikely to be able to conduct the same studies they do on their targeted populations and geographical areas. It’s crucial to start by finding a niche. For instance, Amazon is the most sought-after eCommerce brand that began selling books before expanding into other goods.

Start with a few and type in the types of items and services which you think you are able to provide your customers with the best. This will enable you to comprehend the working processes and conduct an initial test of your market. It is essential to make your product distinct since you’re not likely to have the resources to offer discounts or other promotions similar to chains.

Researching Audiences & Competitors
After you’ve decided on the product you want to market it is important to determine the exact audience the product is being sold to. Recognizing the target market requires studying their buying, browsing as well as other behavior. It is important to determine the demographics you’re targeting, the kind of gadgets are they using for browsing, their purchasing preferences, where they live, what their geopolitics and cultural preferences are, and so on. Only when you’ve identified these factors you can set your business as well as marketing strategies.

The surveys of competitors are crucial to understanding the reality of the marketplace. You need to determine whether competitors provide similar or similar services similar to yours and then decide on strategies. Your business plan, financial planning, production and selling strategies will all be contingent on the competition that you encounter.

Inventory Management & Stock Tracking
If the items that you’re offering are digital and then you’re completely free of these concerns. In the event that you are not, you need to begin thinking about warehouse costs as well as inventory management and storage and tracking the inventory you have. The most popular eCommerce platforms provide built-in tools to help you manage your inventory management effectively. Third-party software applications are also available however, they require you to incorporate them into your app. It is also crucial to display your stock on the product page in real-time. This will help shoppers avoid the stress of not knowing if the product they’re looking for is in stock or not prior to the purchase process.

Shipping Management
eCommerce businesses typically tie up with a variety of shipping services which aid in bringing their products to their clients both locally and internationally. Naturally, the form of shipping service you use will depend on the specific target market you’ve selected. It is crucial to incorporate shipping calculators in your application in order to determine the total invoice amount. This informs customers of exactly what they will have to pay to allow an item to be delivered to their doorstep.

Third-party shipping services usually provide an API you must integrate, and will be a calculator for shipping. If you own your own shipping system, you’ll need to ask the developers to integrate their rates with the app. If this is the case it’s also wise to look into distributed warehouses as your business expands. This will help you and your customer’s shipping costs.

Managing Returns
The main drawback to eCommerce purchasing is the fact that buyers aren’t able to physically touch the product prior to buying it. This means that there’s no way to know if the product is unsuitable or defective before it is delivered. That’s why well-known eCommerce companies always provide options of refunds, returns and replacements, but with some flexibility and security.

Be sure to have the right procedures figured out to handle the request for a refund or replacement. It is essential to have defective items taken care of and then the money returned within a short time in order to keep confidence among your customers.

Figuring out Monetization
The next step is to choose an appropriate price for items and services. It will be based on the amount you invest, your regular expenses, employee costs in the development of your application, maintenance costs, as well as the minimum profits you will need to expand your business. It is important to take your time and conduct a study of the market before you decide on the price you will charge. If you constantly alter the price of your products or keep the same price as your competitors, you’ll not seem like a credible company. You must develop your own pricing policy which will allow you to make a mark.

Choosing the Right Development Team
After you’ve got the basic concepts and the eCommerce methods figured out you’ll require plenty of time to develop an application where customers can shop. There’s an abundance of high-quality eCommerce design services all over the world which can make the process easier for you. Select a firm with the necessary expertise in the development of eCommerce applications Make sure to take note of what their clients have to say about them.

Website or App
It is up to you to decide if would like to develop a web application, mobile application or both. This will impact the remainder of the development as well as other costs that you’ll have to pay. Based on current browsing habits and the accessibility of mobile phones applications for mobile devices are possibly the most effective way for people to buy with your store. If you have a limited budget web-based sites are an alternative

Development & Technologies
After that, you need to select the eCommerce platform that you want your app to be based upon. If you’ve decided to go with mobile apps then you must decide whether you’d like it to be either native or hybrid. Each has its own advantages and the development team can help you with which choice to make.

If you have a website, Shopify, BigCommerce, Magento and WordPress are excellent choices. Speak with your preferred web development company and learn about the advantages and disadvantages of each of the options available to you. Know about the costs for development and additional maintenance costs associated with these platforms, as well as the types of security and additional options they provide. This will help you determine whether you should spend money on additional plugins and extensions to help with shipping, tracking orders taxes, searching or anything else.

When you’ve decided on the best platform, you’ll need to select a suitable hosting service. The type the hosting service you select will depend on the number of services you’ve got and the volume of traffic you’re expecting. In addition to development costs, there will be recurring expenses such as hosting charges, subscription-model plugins, maintenance and much more. Be sure to be aware of the type of expenses you’ll have to pay prior to choosing the technology you will invest in.

Marketing
If you’ve built a solid eStore and you have it filled with great items, you must promote it to your targeted market. It’s only when you broaden your audience and build brand visibility that your website will get more traffic and consequently more conversions. This means you need to think about not only development but marketing too and set an appropriate budget. It’s best to work with an expert digital marketing agency to handle this aspect, as successful marketing is a lengthy and complicated process.

Only by having a solid marketing strategy will you be able to stand out from your competition and make yourself noticeable to your customers. Discuss your preferred marketing partners and develop an effective plan. Utilize all channels that are available for advertising within your budget, and utilize social media whenever you can. Create profiles for your business on all channels that are appropriate and regularly market to a targeted group to ensure that they are able to access your website.

Investing in Security
The majority of 32.4 percentage of all successful online hacking attempts are targeted at the eCommerce sector. Hackers typically view small and newly launched eCommerce companies as easy targets due to their inadequate security systems. Online customers are putting their trust in them with their financial and personal information and expect that data to be secured. Attacks on your website do not just destroy your credibility but be a risk to those whose information is stolen.

Be sure to stay in front of these nefarious elements by investing in the right security measures. Continuously updating your administrator passwords and keeping all of your main databases and files updated as well as regularly backing up All of these will go a long way in ensuring your data is secure. Conduct regular vulnerability tests and utilize high-quality security software or other firewall services. Discuss additional measures that you could implement with your development team and request them to implement similar measures. You may also consider employing regularly scheduled support services for your site to ensure that everything is running smooth.

Conclusion

Your customers must be the primary focus of your eCommerce strategies. You can ensure a pleasant shopping experience by ensuring that your inventory, stocking and shipping, as well delivery, are all done smoothly. Naturally, a professional eCommerce development service will improve the performance of your eCommerce company significantly by using the most efficient, user-friendly and accessible application that is well-optimized. But it’s only with an enlightened long-term plan that you can achieve success in the field of eCommerce.