SR&ED-Ready Documentation: How to Strengthen CRA Claims
- Alon Sabi
- Sep 28
- 5 min read
When R&D Tax Credit claims get rejected, it’s not usually because of weak technology or accounting. It’s because of poor documentation.
In Canada, for example, the CRA requires contemporaneous records when submitting SR&ED and IRAP claims: evidence created during the work, not reconstructed later. That includes combining design docs, meeting notes, code commits, and timesheets into a clear pattern of proof.
This article explains which records to capture, how to keep the process manageable, and why a multi-source approach makes your claim more credible in case of CRA review.
Takeaways
Documentation is the #1 weak spot. CRA expects records created as the work happens, not retroactively.
No single record proves eligibility. Strong claims show a pattern of evidence across multiple sources.
Tech Leads and CFOs both play a role. Technical records demonstrate uncertainty and iteration. Financial records link time and cost.
Leverage existing tools like Git, Jira, and Confluence. Avoid manual spreadsheets and keep the process lightweight.
Credibility comes from consistency. Contemporaneous evidence strengthens your claim and helps defend during a CRA audit.
Why Documentation Breaks Most SR&ED Claims
For the illustrative purpose, we’ll use Canada’s CRA as the example.
In most SR&ED and IRAP claims, the weakest link is almost always the documentation, not the technology or the financials.
Teams often leave records until year-end, then scramble to piece together what happened. The CRA does not require a perfect archive, but it does expect evidence created during the work itself, not rebuilt after the fact.
Evidence cannot guarantee approval, but it does strengthen credibility.
A claim backed by contemporaneous records looks consistent with CRA’s guidance, is more defensible under review, and is harder to dispute. The key is to build a defensible pattern of proof: multiple forms of documentation that, together, tell a complete story. No single record carries the weight on its own.
Case in point: Chris Ryan, an R&D manager at addy, described SR&ED prep as “like getting audited.” Before using better tooling, he would spend days pulling tickets, estimating hours, and checking eligibility. With real-time capture, what used to take a week dropped to just a couple of hours.
Core Types of Documentation to Capture
1. Product Design Documents
Tech Leads
Capture project scope, functional requirements, non-functional goals, and risks or unknowns. Include spikes (proof of concept experiments). Keep this as a living record with versioning.
CFOs
Confirm documents are dated, linked to project codes, and list involved staff for traceability.
Pro tip: At project end, run a retrospective to validate that the design doc was updated accurately. Use retrospectives to confirm and correct, not to fabricate new content.
2. Technical Design Docs (with versions)
Tech Leads
Save major versions and explain why pivots were made. Document diagrams, alternative approaches, and explicitly note directions not pursued. Where possible, attach supporting proof (a spike or proof of concept) to show why a path was discarded.
CFOs
Confirm pivots and discarded options are recorded. They demonstrate technological uncertainty (one of CRA’s core eligibility criteria).
3. Meeting Records
Tech Leads
Summarize blockers, trade-offs, and failed experiments from sprint reviews or retrospectives. Don’t wait until year-end. Capture as you go. When significant changes occur, tag records as potential SR&ED work so they’re easy to retrieve later.
CFOs
Confirm meeting records align with logged hours.
4. Slack or Teams Threads
Tech Leads
Tag problem-solving threads that highlight experimentation. Link these back to documentation. This avoids searching through months of chat later.
CFOs
Treat these informal records as additional contemporaneous evidence.
5. Code Versioning (like Git)
Tech Leads
Use descriptive commit messages like “tested GPU driver fix”. Encourage developers to document verbal decisions in pull requests.
CFOs
Confirm commits are linked to tickets for a traceable chain: Intent > Work > Hours.
6. User Stories & Tickets
Tech Leads
Frame tickets around specific technical challenges. Add screenshots and cross-references to design docs.
CFOs
Confirm exported ticket histories at year-end align with project codes.
7. Timesheets
Tech Leads
Record hours against eligible SR&ED activities, not just “general dev.” Link hours back to tickets or pull requests.
CFOs
Confirm timesheets reconcile with payroll and budgets (CRA verifies this). Ensure there is no overlap with vacation days unless actual work is recorded. Confirm the same expense is not claimed under multiple programs (e.g., IRAP + SR&ED). These programs can both be used, but costs must be allocated carefully to avoid double-claiming.
Note: CRA excludes some benefits from SR&ED-eligible wages, like stock options, retiring allowances. Only salary or wages properly allocated are eligible.
Case in point: Brian Hunt, CTO of MinuteBox, said his team used to spend ~80 hours annually pulling timesheets for SR&ED. With structured documentation, it dropped to less than a day, while giving them “defensible data in case of a CRA audit.”
8. Weekly Team Reflections
Tech Leads
End the week with a 15-minute log of obstacles and learnings. People forget quickly, and once something is learned it no longer feels novel. Weekly notes capture fresh insights before they fade into routine.
CFOs
Confirm weekly reflections are bundled into a monthly log. This creates a consistent, time-stamped audit trail without extra overhead.
How the Documentation Fits Together
The diagram below shows how different records reinforce one another.
High-level design documents flow into requirements, technical designs, and communication tools. These, in turn, connect to project management systems and code repositories. Finally, timesheets tie the entire chain of evidence together, creating a traceable pattern from Intent > Work > Hours > Cost.
Case in point: Alex Glazer of CTAP noted that many clients avoid new systems because SR&ED feels like “extra work.” The solution is not more spreadsheets, but embedding documentation in tools teams already use, like Jira.
How to Keep It Manageable
Capture enough detail to show intent and challenge. Don’t over-document.
Assign a rotating documentation steward each sprint or project phase.
Use the tools your team already relies on (Jira, Linear, Git, Confluence, Notion).
Closing Thoughts
The strongest evidence is created in the moment, not reconstructed at year-end.
Each piece of documentation adds weight to the overall story. Together, they form a clear pattern that demonstrates effort, technological uncertainty, and systematic investigation (all core CRA criteria). That pattern is what makes your SR&ED claim credible and defensible when CRA reviews it.
Keep all documentation until at least after the Notice of Assessment for the fiscal year claimed (typically 6 years), as CRA may request supporting evidence.
And just as importantly, strong documentation gives both Tech Leads and CFOs peace of mind, knowing their claim can stand up under scrutiny.
Review your last project together.
Would the existing records stand up in a CRA review?
If not, try adding a documentation steward for the next sprint and check against CRA’s Technical Review Guide to see the difference.
If you have any questions or comments, reach out any time.
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