Time tracking is perhaps the most important piece of documentation you could create. Your time sheets prove what you spent your time on as well as how much time you spent on them.

Since your tax credit is calculated as a percentage of the salary/money spent R&D, the CRA is looking for a clearly detailed outline of what was spent and whether your documentation supports your claim.

We recommend tracking 100% of your time.

All employees involved in R&D should track 100% of their time as well as separate SR&ED and non-SR&ED eligible activities. This will ensure that the percentage of time spent on SR&ED is calculated accurately.

You can take it a step further and set up the following time tracking categories for SR&ED eligible activities:

• Development
• Testing
• Project Management
• Technical Analysis
• Technical Requirements
• Admin