RMR Rosenswig McRae Rosso LLP

Don’t have an internal accounting team? While you are busy running the day-to-day operations of your business, we can take care of the financial obligations that might otherwise burden you. You can have the trusted advice from our expert accountants as part of your team, without the added financial concern of another full-time staff-member. We have expertise in:

⁃ Services traditionally offered by a CFO, like asking questions to increase the likelihood that the important issues have been considered in selecting a strategy, thorough interpretation of financial information identifying operational efficiencies, identifying key financial drivers,

⁃ For most entrepreneurs, the purchase or sale of a business is a time of incredible intensity and focus. We partner with our clients to take an active role in working through the important issues, addressing issues like devising exit strategies well before the time of sale, assisting in the development of the offering document, analyzing offers and negotiating transactions

⁃ Internal control and review of alternatives for improving efficiency, Internal reporting such as developing the annual financial budget, monitoring, forecasting, cash flow analysis and more External reporting such as interim/year end financial statements, preparing investor/stakeholder quarterly reporting packages and trend analysis visuals, comparing performance vs historical and vs industry

⁃ Bookkeeping services - this is the backbone of accounting – the accurate, careful recording of transactions

For more information on our controllership services click here.

Research and Development

The Scientific Research and Experimental Development (SR&ED) program is a federal tax incentive designed to encourage Canadian businesses to conduct research and development (R&D) in Canada, and many eligible businesses are unaware of the opportunity. The main takeaways of the program are:

- to reward businesses that focus on innovation and advancement in science and technology. The SR&ED program is the largest source of research and development funding in Canada.

- The amount of assistance received under the program is contingent on the wages, overhead and material costs that are directly attributed to the R&D work being performed by your organization.

- The standard federal tax credit available for businesses is 15% of eligible expenses, although many private Canadian tech companies in their “burn” phase of development will qualify for an enhanced 35% credit.

- Additional provincial tax credits for Ontario businesses are available for up to 11.5% of eligible expenses.

- This proves to be an important financing tool during the “burn” phase of your business for current and future product development.

To qualify for SR&ED credits, your project must:

- gain new knowledge that helps to achieve your objectives or resolve a problem

- be undertaken in a systematic investigation or search that is carried out in a field of science or technology by means of experiment or analysis

Not all SR&ED claims are lab-based research—most claims encompass shop-floor development, creating new software/technology or incremental improvements to products or processes performed by small and medium-sized companies, where projects can span multiple years.

Many of our small business clients are surprised to learn that they in fact do qualify for the SR&ED credit. Designed to support small business growth, qualifications for the credit are relatively simple. If you’re solving technical challenges that are new to your company, there is a good chance that you will qualify.

For more information on the SR&ED program click here.

Implementing digital technologies in your business

If your business would benefit from implementing or improving on a digital marketing plan, the governments newly introduced Canada Digital Adoption Program may be worth considering.

The program assists applicants with revenues exceeding $500,000 in one of the past three years and offers two aids:

- up to $15,000 grant from Innovation, Science and Economic Development Canada (ISED) to cover up to 90% of the cost of advisory services to develop a digital adoption plan

- a zero-interest loan of up to $100,000 from BDC to implement the technology

You can apply for the grant and not the loan, as the grant application comes first.

Applications can only be made by either a director ow owner on your incorporation papers and involves filling in basic information on your business as well as the completion of a Digital Needs Assessment Survey, an analysis of your business’ digital maturity. Applicants will hear back within 5-10 business days as to whether they have been approved.

For a detailed list on requirements for approval click here, and for more information from the government’s website click here.

International business development

CanExport SMEs is a funding program designed to promote and enhance Canada’s trade diversification efforts. It offers grants and contributions to Canadian companies to help them prepare for and establish a presence in international markets where they currently have little or no sales.

Typically funded activities include trade show participation, creation of marketing tools, digital marketing, IP protection, and related consulting services. If you are looking to access a new foreign market, this is an excellent program.

Companies can receive up to 50% of eligible costs for $10,000 to $50,000 in funding per project.

For more information on the CanExport program and to apply click here.

Financing needs evolve as the company grows and matures. In the early stages an entrepreneur will rely on an angel investor or investors– we can help you think through an appropriate return for the investor and information that would be helpful in presenting your financial picture.

As the business grows the range of financing alternatives increases and consideration will be given to alternative debt and equity providers. We can assist with detailed cash flow projections and thinking through the best long term financing fit for your business.

As a tech entrepreneur, you will always be inherently focused on planning for the future prospect of sale after you’ve successfully built your product. We understand the important need to plan for the most optimal exit by considering things like:

- introducing an ownership structure that helps minimize taxes on sale through the use of different holding vehicles, while also considering overall family tax planning.

- creating a pipeline within your ownership structure that allows for the possibility of future annual returns in the form of dividends, the re-investment of capital on exit, etc.

- using an ownership structure that is attractive to prospective buyers for ease of purchase

- human capital retention strategies such as employee stock option plans. These are strong tools used for aligning the objectives and goals across employees, owners and stakeholders, and are very important drivers of success in an increasingly competitive world.

We are happy to illustrate visually some of our most commonly used ownership structures to determine which may best suit your needs and objectives.