It is common for entities who undertake research and development to receive grant funding for projects that they undertake. Grants will often be paid on the basis of expenditure incurred or a proportion thereon and may be awarded with certain conditions attached.
One such condition for grants above a certain level will be the requirement for claims to be reviewed by a suitably qualified accountant. The accountant will then provide a Report to the entity and the grant provider under a tripartite agreement.
To enable the accountant to undertake this work efficiently it is important that sufficient records are maintained. It is advisable to get this right at the beginning of the process by ensuring that you understand what records the accountant performing the work will require as this will save both time and costs in the long run.
In my experience this is particularly important in respect of labour which can be one of the largest costs but with the least adequate records maintained to support the claim.
If you would like advice on the accounting aspects of grant funding please get in touch.