6 worked Accounting Process Review case studies — the position a client typically comes to us with, what we do, and what it is worth. Each is an illustrative example built on the rules that apply to accounting process review work, not a specific client's file.
Case Study 1 · Structure rebuilt
Corporate Structure Rebuilt For $54,000 Of Annual Savings — Regional Courier Operator, Red Deer
Client: A regional courier operator · Where: Red Deer, Alberta · Engagement: 8 weeks, fixed fee
Saving per year$54,000
DocumentationComplete
Transfer basisRollover
The situation — A regional courier operator, Red Deer, Alberta
The structure at a regional courier operator in Red Deer, Alberta dated from years earlier. It had been set up for a business that no longer existed. Work in progress carried at billing value one year and at cost the next, so neither year was comparable had become expensive.
What we did for A regional courier operator, Red Deer, Alberta
We reconciled the general ledger to the GIFI schedules filed for each open year and corrected the two years where they disagreed. The reorganisation used the rollover provisions rather than a taxable transfer, so no tax fell due on the restructuring itself.
The result — A regional courier operator, Red Deer, Alberta
$54,000 of annual saving, achieved on a tax-deferred basis. The minute book, elections and valuations are all in the file.
Case Study 2 · CRA review defended
$68,000 Proposed Adjustment Withdrawn In Full — Commercial Cleaning Contractor, Toronto
The situation — A commercial cleaning contractor, Toronto, Ontario
A commercial cleaning contractor in Toronto, Ontario received a proposal letter opening a review of accounting process review. The CRA had identified a shareholder loan account that had drifted for three years with no supporting entries. It proposed an adjustment of $68,000, with 30 days to respond.
What we did for A commercial cleaning contractor, Toronto, Ontario
We treated the response as an evidence exercise rather than an argument. We valued work in progress on one consistent basis and documented the method, so the comparative year could be relied on. We then indexed every supporting document against the specific line the auditor had questioned.
The result — A commercial cleaning contractor, Toronto, Ontario
The proposed adjustment was withdrawn in full — all $68,000 of it. The file closed in 7 weeks with no change to the assessed amounts and no penalty.
Case Study 3 · Records and systems rebuilt
10 Months Reconciled And $6,200 Of Input Tax Recovered — Related-Company Pair, Surrey
Client: A corporation sharing administration with a related company · Where: Surrey, British Columbia · Engagement: 7 weeks, fixed fee
Months reconciled10
Input tax recovered$6,200
Close time6 days
The situation — A corporation sharing administration with a related company, Surrey, British Columbia
Nothing reconciled at a corporation sharing administration with a related company in Surrey, British Columbia. Every filing started with 10 months of cleanup. The file was carrying year-end statements that arrived four months late and never tied to the bank.
What we did for A corporation sharing administration with a related company, Surrey, British Columbia
We rebuilt from source rather than correcting on top of the existing file. We built a fixed-asset continuity schedule from the purchase invoices. We set the capital cost allowance claim class by class rather than claiming the maximum by default. Then we set the routine that keeps it clean.
The result — A corporation sharing administration with a related company, Surrey, British Columbia
10 months reconciled to the bank. The close now takes 6 days, and $6,200 of previously unclaimable input tax was recovered in the process.
Case Study 4 · Backlog brought current
$57,000 Of Arbitrary Assessments Vacated After 6 Years — Quarterly-Close Practice, Victoria
Client: A professional practice that closes its books quarterly · Where: Victoria, British Columbia · Engagement: 5 weeks, fixed fee
Arbitrary tax vacated$57,000
Years brought current6
Account statusCurrent
The situation — A professional practice that closes its books quarterly, Victoria, British Columbia
6 years of unfiled returns had turned into notional assessments at a professional practice that closes its books quarterly in Victoria, British Columbia. Underneath lay capital assets written off in full in the year of purchase, with no fixed-asset schedule behind the deduction. Collections had already started.
What we did for A professional practice that closes its books quarterly, Victoria, British Columbia
We reconciled the inter-company accounts, papered the arrangement with a written agreement, and aligned both corporations’ year-ends. We then filed every outstanding year in chronological order so the CRA could vacate the notional assessments cleanly.
The result — A professional practice that closes its books quarterly, Victoria, British Columbia
All 6 years were accepted as filed. $57,000 of arbitrarily assessed tax was vacated, collections action stopped, and the account is current for the first time in 6 years.
Case Study 5 · Scaling without breaking
Second-Province Expansion Handled, $41,000 Of Cash Released — Design Agency, Calgary
Client: A 14-person design agency · Where: Calgary, Alberta · Engagement: 5 weeks, fixed fee
Cash released$41,000
New registrationsComplete on day one
Compliance gapsNone
The situation — A 14-person design agency, Calgary, Alberta
Revenue at a 14-person design agency in Calgary, Alberta was up sharply and cash was tighter than ever. Underneath it sat two sets of numbers — one in the accounting file, one the owner actually ran the business on.
What we did for A 14-person design agency, Calgary, Alberta
We set a monthly close calendar with a fixed cut-off, so the year-end became a review of work already done rather than a twelve-month rebuild. Every new obligation was set up before it was triggered, not after. That covered registration, remittance frequency and provincial filing.
The result — A 14-person design agency, Calgary, Alberta
$41,000 of cash was released from the working capital cycle. The expansion completed with every registration and filing obligation covered from day one.
Case Study 6 · Deadline rescue
3-Week Turnaround Beat The Deadline And Saved $80,000 — Two-Partner Engineering Firm, Halifax
Client: A two-partner engineering firm · Where: Halifax, Nova Scotia · Engagement: 3 weeks, fixed fee
Late-filing penalty avoided$80,000
Filed with13 days to spare
Next yearPapers ready
The situation — A two-partner engineering firm, Halifax, Nova Scotia
A two-partner engineering firm in Halifax, Nova Scotia was weeks away from the deadline for accounting process review. Behind that sat a year-end moved informally, leaving twelve months of trading reported as though nothing had changed. The exposure if the date slipped was around $80,000.
What we did for A two-partner engineering firm, Halifax, Nova Scotia
We separated personal and corporate spending, cleared the shareholder loan through a documented salary and dividend mix, and restated the comparative year. The filing went in complete rather than provisional, so there was no amended return to follow.
The result — A two-partner engineering firm, Halifax, Nova Scotia
Filed with 13 days to spare. $80,000 in late-filing penalties avoided, and the working papers are ready for the following year.
Reviewed by Udit Gupta, Founder and Tax Accountant for the 2025 tax year. These case studies are illustrative worked examples composed from the CRA rules that apply to this type of work, not specific client files; figures are representative and outcomes depend on your own facts.
