5 Common SR&ED Mistakes That Cost Founders Money

After reviewing hundreds of SR&ED claims, we've seen patterns emerge. Here are the five most common mistakes that cost founders money. ## 1. Under-claiming Eligible Work Many founders don't realize how much of their work qualifies. If you're solving technical problems - even "routine" development challenges - you may be leaving credits on the table. **The fix:** Cast a wide net when documenting R&D activities. Let your SR&ED advisor determine what's eligible. ## 2. Poor Documentation The CRA doesn't just want to know what you did - they want evidence you did it. Without proper records, even legitimate claims can be denied. **The fix:** Implement simple documentation practices now. Git commits, Slack messages, Jira tickets - these all count. ## 3. Mixing Work Descriptions Technical write-ups should focus on the technological advancement and uncertainty, not the business value or features. The CRA wants to hear about the "how," not the "why." **The fix:** Separate your product marketing from your SR&ED narratives. ## 4. Missing the Filing Deadline SR&ED claims must be filed within 18 months of your fiscal year-end. Miss this deadline and you lose the credits entirely. **The fix:** Build SR&ED into your annual calendar. Start documentation early. ## 5. Going It Alone DIY claims can work for simple cases, but most founders underestimate the complexity. A good SR&ED consultant typically pays for themselves many times over. **The fix:** At minimum, get a professional review of your claim before filing. ## The Bottom Line These mistakes are all preventable. With the right processes and support, you can maximize your credits while minimizing risk. Curious how your SR&ED practices stack up? [Book a free review](/contact) with Wavecrest.