Category Archives: Software Development

5 Software Development Trends to Watch

As anticipated, 2016 produced innovative trends in the areas of big data and cloud computing, withInnovation trends 2016 continued development in mobile spheres and “wearable” technology becoming a game-changer across a multitude of industries.

While we will see these trends continue into the new year, we expect 2017 to hold even more innovation in store. Continue reading to learn the 5 software development trends to watch for in the year to come.

Smaller teams, increased collaboration

While DevOps (development operations) is not a new trend in software development, collaboration between developers, engineers, and IT specialists continues to expand, with more tools becoming available to facilitate group work.

Open source tools like Docker and Apache have existed for some time to assist DevOps teams. Over the next year, watch for a rise in purpose-built applications to bridge the workflow of entire teams in real time.

Priority on privacy

Data breaches provided plenty of news over the past year, from Yahoo!’s 500 million compromised accounts to major cyber attacks on LinkedIn, Tumblr, NSA and, perhaps most notably, presidential candidates.

The spotlight is on digital security now more than ever, and software developers have set privacy as a top priority. Rather than assigning a security specialist to teams, some firms are now training all developers in security and privacy so as to safeguard development at all levels. Additional tools like IBM AppScan are likely to surface to aid this trend.

Subscription over Ownership

With improved online capabilities around the world making way for cloud computing, we continue to see the rise of subscription-based sales over the traditional purchase of software.

Adobe and Sage are two big names that now provide their software via download, offering a variety of subscription packages to users. Developers will be called on to advance this framework and to improve applications for online customer support.

Predictive Analytics

Creating and using big data has been a remarkable achievement of recent years, but it has been up to the user to interpret the data and employ it in decision-making.

Despite conversations as to the value of predictive analytics, we can now look for software to assist with this process. Oracle and IBM are making headway on this front, and a variety of industry-specific tools are likely to be released throughout 2017.

Real-time elements

Mobile technology has been around for some time now, but our increased dependence on mobile devices is creating ripple effects that should not go unmentioned. Cell phone and tablet usage has now overtaken that of the computer—a trend that is envisioned only to continue.

In an age where consumers expect instant results, the pressure is on websites and applications to feature more real-time elements. Look for developers to focus in this area over the following year.

If the achievements of 2016 were any indication, the year to follow should provide an abundance of innovation in software development.

Innovation funding for software development

Is your company developing software in-house, hiring a consulting company to design custom software, or are you a software developer?  Many of these activities are eligible for R&D funding in Canada through programs like SR&ED.  The following Checklist for Software Developers can help get you started.

Our experienced experts at Enhanced Capital Recover will be able to identify all of your eligible projects and assist you in recovering SR&ED tax credits to which you are entitled.

Even if you currently complete your own R&D tax credits application, our experts will be able to validate and optimize your scientific descriptions as well as your eligible expenses. We will assist you in maximizing your return on investment while minimizing the risk of audit by Revenue Canada.

With our contingency based fees, we completely eliminate the risk of making a claim. We do the work up front and only get paid when your refund is secured.  Contact us today for a free, no obligation consultation.

 

Software Development R&D Tax Credits | Checklist for Software Developers

As a software developer there are many opportunities to be innovative, even within the scope of software development 22routine business operations and activities.  When a new product or industry breakthrough occurs, it is clear that innovation has occurred.  However, when it comes to R&D tax credits in Canada, such as SR&ED, the definition of innovation is much broader – inclusive of incremental advancements, which can often be overlooked by management.

Through this article we hope to help eligible software development companies realize the opportunity, and to provide a checklist of the type of activities which are eligible for SR&ED, as well as some examples of projects that would qualify.

Maximizing your companies’ SR&ED tax credits is best supported by an expert in the field.  SR&ED consultants help companies maximize their R&D tax credits and ensure that projects are submitted according to the CRA’s guidelines.

Checklist for Software Developers

Software development companies are normally involved in a number of business activities which are eligible for R&D tax incentives such as SR&ED.  If your company has been involved in any of the following activities, a SR&ED claim is likely:

  • Your team advanced technology in operating systems, programming languages, data management, communications software or software development tools
  • Your team conducted research into methods of designing, developing, deploying, or maintaining software
  • Your team produced advances in generic approaches for capturing, transmitting, storing, retrieving, manipulating, or displaying information
  • Your team attempted to fill a technology gap in order to develop or advance a system
  • Your team attempted to improve the performance, speed or functionality of an application
  • Your team encountered unexpected technical uncertainties during development efforts (i.e. hardware/ software issues) that required multiple attempts to solve the functionality issues
  • Your team conducted research and development into software tools or technologies in specialized areas of computing (i.e. image processing, geographic data representation, character recognition, artificial intelligence)

Software Industry SR&ED examples

Software developers often have SR&ED eligible projects on the go on a daily basis when trying to create programs or apps or overcome technical barriers. Software development issues that are common include timing issues (i.e. deadlocks, races), resource management (i.e. memory footprint), exception handling, thread synchronization and responsiveness (i.e. start-up time; responsiveness).

To give you an idea, one concrete example of software development that met the requirements of SR&ED is the following: a cached turn-by-turn GPS navigation was created to solve drivers’ difficulty of navigating roads outside of cell phone service range.

Businesses that produce software for another company’s specific use are also eligible. Perhaps your firm was approached to create software that allows your client to share inventories through their smart phones?  This would be an eligible R&D activity!

How ECR can help

Our experienced SR&ED experts at Enhanced Capital Recover will be able to identify all of your eligible projects and assist you in recovering SR&ED tax credits to which you are entitled.

Even if you currently complete your own R&D tax credits application, our experts will be able to validate and optimize your scientific descriptions as well as your eligible expenses. We will assist you in maximizing your return on investment while minimizing the risk of audit by Revenue Canada.

With our contingency based fees, we completely eliminate the risk of making a claim. We do the work up front and only get paid when your refund is secured.  Contact us today for a free, no obligation consultation.

 

R&D Tax Credits: Checklist for Software Developers

Software developers employ more than 300,000 Canadians in an industry that contributes nearly software development 22$30 billion to domestic growth, and the Canadian Revenue Agency (CRA) is rewarding these companies with increased SR&ED funding.

Many Canadian software development companies already qualify for a R&D tax credits through their routine business activities. Enhanced Capital Recovery can determine how much funding your business is eligible for and our professional consultants can take care of the complicated claim procedure for you.

Software projects that qualify

The SR&ED program accepts a variety of software development projects, ranging from improving your company’s employee scheduling program to developing a smart phone app—as long as the basic research and development criteria are met.

More important than your project’s success is the knowledge your company gained about the technology. Being able to express what your employees discovered in an area they didn’t initially understand is vital to a successful claim.

Checklist of activities related to software development that qualify for SR&ED tax credits?

If your company is currently involved in any of the following activities, it is likely that you would qualify for SR&ED:

  • Advanced technology in operating systems, programming languages, data management, communications software and software development tools.
  • Conducted research into methods of designing, developing, deploying, or maintaining software.
  • Produced advances in generic approaches for capturing, transmitting, storing, retrieving, manipulating, or displaying information.
  • Filled a technology gap in order to develop a software program or system.
  • Conducted research and development into software tools or technologies in specialized areas of computing (i.e. image processing, geographic data representation, character recognition, artificial intelligence).
  • Attempted to improve the performance, speed or functionality of our application.
  • Encountered unexpected technical uncertainties during our development efforts (i.e. hardware / software incompatibilities).

Claimable expenses

Essential materials used in the project can be claimed, including hardware used for testing new software, or equipment used for data collection, analysis, or research undertaken during development.

Salaries of employees is one of the major areas of most SR&ED claims.  A portion of staff salaries directly involved with the SR&ED project can be recovered. The amount depends on the percentage of time the employee devoted to the project—developers that spent 60% of their time on the project could claim a significant portion this time.

Note that routine or non-technical tasks, such as marketing, advertising, customer support, or day-to-day business tasks cannot be recovered on your SR&ED claim.

Taking the next step with Enhanced Capital Recovery

The ECR tax consultant you work with is not only knowledgeable in SR&ED standards, but is an expert in the software development industry as well. The CRA expects your claim to be submitted using industry-specific terminology—something most in-house accountants have difficulty accomplishing.

Let Enhanced Capital Recovery assist you in discovering how much of your expenses can be recovered through the SR&ED program. To speak with an industry-expert consultant, contact us for a no-risk assessment today.