We live in a world that is connected and integrated in ways that were unimaginable even one generation ago. The reality that we live with today is that we have moved beyond science fiction and now have access to information, entertainment and even to each other that is truly staggering. The world is, literally, at our fingertips and available to us instantaneously, 24 hours per day/ 365 days per year.
With this new reality also comes new challenges that we are currently learning to manage as a society. Information overload, technology addiction, diminished attention spans and even online bullying are part of our daily landscape in 2018. Like any new tool, however, once we become comfortable with the reality of this interconnected, online, digital world, we’ll start to discover the many positive ways that it can enhance our lives.
Among the exciting realities emerging is the fact that the world of education is already being impacted in a significant way. Children go to school with I-pads and work on smart boards that connect them to their teachers, their classmates and their curriculums through the internet. At the same time, they are benefitting from the development of new apps and games created expressly for the purpose of educating them.
The government of Canada recognizes the potential for growing this part of the technology sector and has made specific tax credits available for corporations that qualify. Similar to the incentives available in other industries for scientific research and experimental development, businesses that are dedicated to E-learning and the development of games and apps, made for the purpose of educating children, can qualify for a refundable tax credit.
One of the requirements for eligibility is that products developed must have only one primary purpose. For example, apps and games developed for educating children under 12 years of age cannot also have a primary purpose of entertaining the user or to be used for recreation. Furthermore, products developed to educate youths and adults are not considered to have the primary purpose of educating users under the age of 12. The Government of Ontario Ministry of Finance also explicitly states that products developed with the primary purpose of entertaining the user do not qualify as products designed primarily for education.
A critical part of a successful application is the inclusion of complete, sound financial records during the process of creating, marketing and distributing your eligible interactive, digital media products. Aside from helping to manage cash flow and establishing working budgets, our smart accounting approach to accounting and bookkeeping means that we take advantage of cloud based innovations like the hubdoc app for collecting, sorting and filing data and Xero online accounting software.
As the world of technology continues to evolve with new products and uses that are not yet fully understood, the time is right to bring automation into your business in as many areas as possible. Streamlining tasks like record keeping, bookkeeping and accounting is what Flow CPA does best allowing you to do what you do best. Ultimately, this means that you get to keep more of your own money in your business and your bank account.