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10 ways Synnch can help improve the eligibility of your R&D Tax Incentive claim

Accurate reporting and record-keeping are critical parts of an R&D Tax Incentive claim. These are two of the most vital elements for businesses seeking to access the program as they underpin the very eligibility of the claim and the ability of your business to access a reimbursement of up to 43.5 per cent of their research and development costs. 

Synnch is designed to power business access to the R&D Tax Incentive. The platform has been developed to streamline reporting, assisting companies to track their relevant activities over the applicable period. Better reporting then leads to a more efficient lodgement process as the information is already collated and ready for submission via the AusIndustry online R&D Tax Incentive portal. 

This guide outlines ten ways in which Synnch helps to increase compliance via effective record-keeping for the purpose of increasing the intensity of your R&D Tax Incentive claim. 

Synnch makes it easier to document and claim individual R&D activities

Most Australian companies file claims for entire R&D projects instead of the individual activities within the project. Synnch can help avoid this by allowing you to record accurately, log, and time-stamp all of the directly related supporting and core experimental activities that occur during these projects. This means that you can make R&D claims for all activities within your project. 

2) Synnch ensures that you correctly align the relevant company information with the appropriate R&D activities

Ensuring that you are conducting R&D activities within the suitable business structures is a critical component when undertaking an R&D Tax Incentive claim. Although Synnch can’t help with setting up your corporate structure (we will leave that to you and your trusted advisers), what we can do is ensure that from the onset, your company is linked to its relevant R&D activities. What this does is ensure that all of your relevant data is connected correctly from the start – avoiding unnecessary backtracking and potential issues when making your claim. It also leaves an easy-to-follow audit trail for those assessing the eligibility of your claim, increasing your chances of success. 

3) Synnch helps to calculate the eligible R&D costs correctly

Some companies over or under-calculate their eligible R&D Tax Incentive costs. This can often occur when a company takes a broader or narrower approach when viewing its R&D expenses. In some instances, the incorrect calculations result from the business using the wrong allotment methods to claim their expenses. Synnch avoids this by ensuring that all expenditure is inputted and tracked correctly, linked directly to its corresponding activity. This empowers businesses in the decision-making process as they have a clear line of sight regarding the potential size of their R&D claim, allowing them to make effective budgeting decisions going forward. 

4) Effective record-keeping makes for a healthier claim 

The entire premise of Synnch is providing businesses the ability to keep accurate, transparent, and time-stamped records of their R&D-related activities and expenditure enables them to increase the intensity of their R&D Tax Incentive claim. 

Synnch makes sure that you keep accurate and updated records of your entire R&D processes, including the costs incurred through its integration with Xero. You should also note that your records should contain all experiments undertaken throughout the projects and not just the results. 

Synnch records the following information to achieve this goal:

  • Captures all supporting activities, including how they are related to the core activity
  • All performed experimental activities from the beginning of the project to completion
  • Proof that all activities were undertaken solely to generate new knowledge
  • Proof that an expert couldn’t determine the final outcome in advance

5) Synnch helps to showcase how specific technical knowledge gaps are being addressed 

Simply creating new technology and using existing knowledge to solve challenges isn’t enough. Just because you developed a new product doesn’t mean that you’re eligible for R&D tax credits. You need to prove that the experimentation process was necessary as an expert couldn’t derive the outcome from the hypothesis. 

Synnch can help resolve this as an issue through its R&D tracking feature that allows you to input the specific technical knowledge gaps being addressed in an easy-to-use format. By inputting the information correctly from the beginning, it increases the intensity of your claim.

6) Synnch ensures clarity around your R&D Project descriptions

Using Synnch for the data and document management activities associated with your R&D Tax Incentive claim ensures that the information is presented clearly and effectively. 

Through effective record-keeping and reporting, you can ensure that the activity descriptions accurately reflect the true scope of your R&D projects and are in accordance with the Australian Tax Office and AusIndustry requirements. 

7) Synnch captures all eligible supporting R&D activities

Synnch captures from start to finish the lifecycles of your R&D projects. This means that you can easily demonstrate a systematic approach that meets the criteria outlined by the Australian Tax Office and AusIndustry. This includes; 

  • Capturing how the activities that you undertook generated new knowledge
  • How an outcome could not be determined in advance
  • How a hypothesis or hypotheses were tested during the relevant time period

8) Synnch captures all relevant R&D expenditure

Synnch enables R&D Tax Incentive claimants to document and link all relevant R&D expenditure, allowing for easier calculating of the total value of your claim. This allows you to keep track of all spending on staff (incl. full-time resources and contractors), equipment, and other resources and provide greater transparency for your claim when it is being assessed. 

9) Synnch improves eligibility by helping you to easily categorise your R&D activities 

Through its document management system, Synnch enables you to enhance the eligibility of your claim by correctly categorising the relevant information to the right activity. 

10) Synnch helps make it easier to differentiate between core and supporting R&D activities 

A key challenge for R&D Tax Incentive claimants is clearly differentiating between core and supporting R&D activities. Core activities are primary, while supporting activities are directly related to the core R&D activities. Unfortunately, most companies under-calculate their costs only claiming for the core activities. Synnch assists you in clearly differentiating between the two sets of activities, while allowing to you keep track of costs via its Xero integration. This ensures that you are making the right decisions around your R&D Tax Incentive claim using the correct information to judge the eligibility of your claim. 


How Can Synnch help you with your R&D Tax Incentive claim? 

Synnch is a digital platform that enables streamlined record-keeping, data accessibility, and reporting ability for organisations as a reliable industry expert for Australia’s R&D Tax Incentives. Our goal is to improve your business’s access to R&D tax credits using our tailor-made digital platform designed to power innovation. 

Let us help you access your R&D tax incentives. Contact us today for an engaging consultation. 

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