SR&ED Documentation: Build It Into Your Sprints
Most founders lose SR&ED value not because the work didn’t qualify, but because months later nobody can show the uncertainty and the experiments. The fix is small: capture evidence in the tools engineers already use, and review it monthly.
How should startups document SR&ED?
Add one SR&ED field to your engineering tracker so engineers can label candidate work as it happens, keep a short monthly record per project, and have the CTO or founder review it every month. CRA’s guidance stresses evidence generated as the work progresses (CRA’s eligibility guidelines).
What does it look like in Jira or Linear?
| Field | Value |
|---|---|
| SR&ED candidate | Yes |
| Project | SR&ED-2026-02 Offline sync |
| Uncertainty | Can CRDT-based merge keep invoices consistent across 3 offline devices? |
| Hypothesis tested | Per-field vector clocks with server tie-break |
| Result | Failed under clock skew; next: hybrid logical clocks |
| Time this week | Priya 14 h · Sam 9 h |
What goes in the monthly record?
- The technical objective.
- The baseline: known technology and approaches.
- The specific uncertainty: what couldn’t readily be solved.
- Hypotheses tested.
- Experiments, prototypes, code branches, benchmarks and results.
- Failures and what was learned.
- Staff and contractor time by project.
- Related invoices, cloud, equipment and project records.
Which evidence is strongest?
- Records dated during the work: tickets, commits, pull requests, design docs.
- Benchmarks and test results, including failed runs.
- Meeting notes where technical options were weighed.
- Time sheets or tracker time by person and project.
- Versions of prototypes and abandoned approaches.
These map directly onto the three questions in the claim form, covered on the T661 claim process.
If it isn’t in the tracker, it didn’t happen.
Contemporaneous records are your strongest defence in a review.
How do you keep it going?
Make the monthly review a 30-minute meeting between the CTO and whoever owns finance. Confirm which tickets are SR&ED candidates, check time is recorded, and write the month’s summary. It also keeps the claim honest, which matters if CRA reviews it; see review and timeline. AI teams should add benchmark history, as on SR&ED for AI startups.
Frequently asked questions
What documentation do I need for SR&ED?
Records made during the work showing uncertainty, hypotheses, experiments, results, failures and time spent.
How do I track SR&ED in Jira or Linear?
Add an SR&ED field or label, link tickets to SR&ED projects, and record time and results on them.
How often should we document SR&ED?
As work happens, with a monthly review by the CTO or founder.
Do I need timesheets for SR&ED?
You need reliable time records by person and project. Tracker time or timesheets both work if consistent.
Are failed experiments useful for SR&ED?
Yes. They show the uncertainty and the systematic investigation.
Can I write the SR&ED claim at year end?
You can write it then, but the evidence should come from records kept during the year.
Sources & further reading
Standards and platform rules change. These sources let you verify the current requirements directly. All screens shown are mock-ups of fictional products.