The Problem with Retrospective Tracking

Tracking R&D hours retrospectively, at the end of the financial year, is a practice many businesses fall into due to the pressures of day-to-day operations. However, this approach comes with several significant drawbacks:

1. Increased Effort and Time Crunch:

Retrospective tracking demands a major lift in effort and time, often right before the deadline. This means business owners and their teams have to dedicate a substantial amount of time all at once, which can be overwhelming and stressful. Instead of spreading the workload throughout the year, it becomes a last-minute scramble, detracting from other critical business activities.

2. Tedious and Unnecessary Task:

Recalling and finding evidence to substantiate the R&D time after months have passed is both unnecessary and tedious. Your team and R&D consultant have to sift through old records, emails, and notes to piece together the R&D activities, which is an inefficient use of resources.

3. Inaccuracies:

The accuracy of retrospectively recorded R&D hours is often compromised. It’s unlikely that you will remember all the R&D activities and hours accurately, nor will you have all the necessary documentation to back up your claims. At the R&D Tax Agents Conference this year, AusIndustry and the ATO highlighted that they are conducting joint reviews to crack down on insufficient substantiation. This means the risk of penalties and rejected claims is higher if your records are not meticulous.

The Benefits of Contemporaneous Time Recording

On the other hand, contemporaneous time recording offers a range of benefits that make it a far superior method:

1. Accuracy:

By recording R&D hours as they occur, you ensure that your data is accurate and up-to-date. This method eliminates the guesswork and potential errors associated with trying to remember activities after the fact.

2. Ease of Management:

Keeping up-to-date records makes it much easier to manage and extract evidence for R&D claims. When it’s time to file, all the necessary information is already organized and accessible, saving time and reducing stress.

3. Better Forecasting:

Contemporaneous recording allows you to forecast R&D expenditure more accurately. This helps in tax planning and business strategy, ensuring you can make informed decisions based on real-time data.

How Synnch R&D Timesheets Can Help

Synnch R&D Timesheets are designed to streamline the process of tracking R&D hours, providing a host of features that make contemporaneous recording straightforward and effective.

Real-Time Entry:

Log R&D hours in real-time, ensuring accuracy and completeness.

Automated Reminders:

Receive reminders to enter your hours, helping maintain consistent records.

Comprehensive Reporting:

Generate detailed reports that simplify the substantiation of your R&D claims.

Integration:

Seamlessly integrate with other business tools to streamline your workflow.

User-Friendly Interface:

Easy to use, making it simple for your entire team to adopt.

Real-Time Calculations:

Benefit from real-time calculations of your R&D hours and costs, helping you see the progress and forecast how much money you will receive back in your R&D claim.

Easy Export:

Easily export structured evidence for claim preparation, making the documentation process efficient and thorough.

Start Your Free Account

Ready to make the switch to accurate and efficient R&D time tracking? Start your free account with Synnch R&D Timesheets today and experience the benefits of contemporaneous recording for yourself.

Click here to create your free account.