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Record SR&ED refundable tax credits as a current asset under "Tax Credits Receivable" the moment you file your claim. This entry keeps your financial statements accurate and prevents cash flow surprises when the refund arrives.
Start by setting up dedicated accounts in your chart of accounts. You need one account for SR&ED refundable tax credits receivable and another specifically for R&D expenses. Most founders skip this setup step, then struggle with reconciliation later.