August 10, 2022
The importance of being efficient during an economic slowdown is twofold. First, a business needs to be efficient in order to save time and money. Second, a business needs to be efficient in order to remain competitive.
When the economy slows down, businesses have to tighten their belts and become more efficient in order to stay afloat.
Here are 3 tools to leverage for your business to thrive during an economic turndown.
The federal and provincial government offer a range of tax credits programs that businesses can leverage to reduce their tax liability. The two most common are the research and development tax credit and the e-business tax credit.
The research and development tax credit is available to Canadian businesses that invest in qualifying research and development activities. The R&D credit can be used to reduce your net income for tax purposes in the current year or deduct them in a future year. To qualify, the activity must meet certain criteria, including that it must be new, original, and undertaken for the purpose of discovering new knowledge or improving existing knowledge.
In Quebec, e-business can get you a tax credit that represents 30% (24% refundable and 6% non-refundable) of the eligible salaries paid by the corporation to eligible employees.
Because it is very hard to improve if you can't measure, one of the most important things a business can do during this time is to track how its employees are spending their time. This may seem like a counterintuitive step, but it can actually lead to optimization and efficiency.
With visibility into how employees are spending their time, businesses can get insight into where there may be bottlenecks or areas of improvement. This information can then be used to make changes that increase efficiency and help the company weather the storm.
Additionally, tracking employee time provides the required data for businesses take advantage of the SR&ED and e-business tax credits mentioned above, or other government incentives that are designed to encourage businesses to invest in workforce optimization.
One way that automating tasks can save a business time and money is by reducing the number of errors that are made. Automated tasks are typically less error-prone than manual tasks, because they are less prone to human error. This can save the business time and money by reducing the need for rework or corrective action.
Another way that automating tasks can save a business time and money is by improving employee satisfaction. Automated tasks often require less manual effort than manual tasks, so they can be less taxing on employees' time and energy. This can improve employee satisfaction and lead to reduced staff turnover. Additionally, automated tasks often allow employees to work more efficiently, which can lead to increased productivity.
By following these tips, you can make sure that your business is as efficient as possible during an economic slowdown.
Don't know where to start? Good news: Chrono Apps offers an extensive platform that automatically tracks time and assists you in building the optimal government tax credit claims.
Mixed with our extensive partner network, we can help you get the most out of these strategies and make sure you come out with a stronger business.
