What existing evidence can you identify within your clients’ systems?
The most effective approach to recordkeeping in Synnch involves identifying primary evidence of your clients R&D activity within their existing systems and technology, and then linking or uploading this evidence in Synch with a timesheet and the relevant context to their experimental R&D activities. When designed effectively, this approach can successfully document the contemporaneous delineation of R&D activities, from business as usual, and minimise double handling.
At Synnch we call this process developing the substantiation plan, and it’s comprised of four parts:
Identify systems containing primary evidence of R&D activity.
Develop a strategy to delineate this evidence at its source, as close to the point of creation as possible.
Develop a means to identify, link or export and upload this evidence in Synnch.
Demonstrate how the primary evidence can be enhanced using Synnch by adding a timesheet, and the relevant context to the corresponding R&D activities.
The types of evidence your client’s can produce, and whether they are uploaded or linked in Synnch will largely depend on their industry. Some considerations for evidence types include:
Is the evidence contemporaneous and can its provenance and veracity be demonstrated?
Does it capture the corresponding business activity likely to evidence R&D activities and systematic progression?
Is the evidence technical in nature, can observations be quantified?
As with any compliance process, the quality of the data inputs will determine the quality of the data outputs …
In summary, your clients will have ample evidence of their new product or service development in their own systems, but it’s very unlikely they will have the relevant technical evidence to demonstrate hypothesis development, experiment design and the broader systematic progression of work. This approach, along with the technical structure in Synnch, allows your clients to identify their R&D activities, and add the technical rigour needed to substantiate them.
Substantiation with the Xero Integration.
If your client chooses to integrate their Xero account, their financial data can be used to enhance any records created in Synnch. Time sheets are automatically converted to R&D wage and salary estimated, and payroll data is monitored contemporaneously to calculate one of two automated cost drivers for apportionment.
Creating real time estimates and forecasts of R&D wage & salaries by team member, along with estimates for overhead apportionment can be useful in motivating recordkeeping, and recordkeeping compliance oversight.