How to Prepare an Audit-Ready SR&ED Claim

Preparing SR&ED properly isn’t about writing a longer application. It’s about building a claim that can be verified quickly if CRA asks questions. An audit-ready file makes your technical work easier to understand, your costs easier to defend, and your timeline easier to prove. If you want smoother reviews and fewer reductions, treat SR&ED like a year-round system, not a year-end scramble. Done right, sr&ed tax credits canada can become a predictable lever that supports innovation while protecting your business from avoidable claim risk.

1) Start with a Clear Project Map

Most SR&ED problems begin when projects are too broad (“platform rebuild”) or too vague (“AI improvements”). Build a simple project map that separates SR&ED-eligible experimentation from routine development.

Include:

• The technical objective (what you were trying to achieve)
  
  
• The technical uncertainties (why it wasn’t straightforward)
  
  
• The hypotheses and approaches tested
  
  
• The measurable outcomes (what changed after tests)
  
  

This structure makes your r&d tax credit claim easier to review because it shows a logical trail from uncertainty to experimentation to result.

2) Document Experiments While the Work Happens

Audit-ready evidence comes from consistency. Instead of relying on memory, capture small “proof points” as part of the normal workflow.

Good evidence sources:

• Git commits and pull requests linked to experiment tickets
  
  
• Test results, benchmarks, logs, and screenshots
  
  
• Short weekly summaries of what was tested and what changed
  
  
• Meeting notes that show decisions, constraints, and outcomes
  
  

This creates a reliable backbone for the research and development tax incentive narrative without adding heavy process overhead.

3) Track Time in a Claim-Friendly Way

CRA reviewers would like to know by whom something was done, and why that work is related to SR&ED experimentation. Simple timesheets tend to be excessive generalisations.

Better time tracking:

• Log time to SR&ED project codes (not just “development”)
  
  
• Add short task descriptions tied to uncertainty and testing
  
  
• Separate experimental work from routine tasks (support, UI, bug fixes)
  
  

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This would ensure the integrity in your sr&ed tax credits canada filing process and lessening the number of queries during the vetting process.

4) Build a Clean Costing File That Matches the Story

A strong technical story can still be reduced if costs are unclear. Keep a clean costing pack that mirrors your project map.

Include:

• Salary allocations supported by time records
  
  
• Contractor invoices linked to SR&ED tasks and deliverables
  
  
• Clear explanations for any cost methodology you use
  
  
• A simple summary sheet tying totals back to projects
  
  

When your numbers match your narrative, your r&d tax credit claim becomes far easier to validate.

5) Prepare an “Audit Binder” Before You File

Think like a reviewer: if someone sees your claim for the first time, can they verify it quickly? Create a single folder (or binder) with consistent naming and a clear index.

Your audit-ready package should contain:

• Project summaries (1–2 pages each)
  
  
• Evidence samples (tests, commits, logs)
  
  
• Time tracking exports and allocation notes
  
  
• Costing spreadsheets and supporting invoices
  
  
• Final SR&ED forms and internal sign-off
  
  

This is the fastest way to make your research and development tax incentive submission resilient.

Conclusion 

An audit-ready SR&ED claim is built on clarity, consistency, and clean documentation, not on last-minute rewriting. If you want expert help organising your projects, tightening your evidence trail, and submitting a stronger sr&ed tax credits canada file, book a consultation with GovMoney today and get support preparing a confident, audit-ready claim.

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