6 Accounting Records Reconstruction tax and accounting engagements in full — what the client came to us with, what we did, and what it was worth. Each one is specific to accounting records reconstruction work, not a general example.
Case Study 1 · Planning that cut the bill
$66,000 Saved By Correcting What Prior Filings Had Missed — Machine-Shop Owner-Operator, Kitchener
A machine-shop owner-operator in Kitchener, Ontario asked for a second opinion on accounting records reconstruction after three years of rising tax. The review found year-end statements that arrived four months late and never tied to the bank.
What we did
We built the comparison first — current structure against two alternatives — and then separated personal and corporate spending, cleared the shareholder loan through a documented salary and dividend mix, and restated the comparative year.
The result
First-year saving of $66,000, with the same benefit recurring. Every position taken is documented and supported in the file.
Case Study 2 · Backlog brought current
Collections Halted And $59,000 Cut From A 6-Year Backlog — Growing Landscaping Company, Edmonton
Client: A growing landscaping company · Where: Edmonton, Alberta · Engagement: 7 weeks, fixed fee
Balance reduced by$59,000
Backlog cleared6 years
CollectionsHalted
The situation
By the time a growing landscaping company in Edmonton, Alberta called, 6 years were outstanding and the CRA had assessed on estimates. Underneath it sat two sets of numbers — one in the accounting file, one the owner actually ran the business on.
What we did
We reconstructed the records year by year and 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. Each filing replaced an arbitrary assessment with a real one.
The result
The account is current. Filing on real numbers rather than CRA estimates reduced the balance by $59,000, and a relief application addressed part of the accumulated interest.
Case Study 3 · Cash and remittance control
Instalments Rebased, $69,000 Of Cash Returned To The Business — Boutique Fitness Studio Group, Victoria
Client: A boutique fitness studio group · Where: Victoria, British Columbia · Engagement: 10 weeks, fixed fee
Cash returned$69,000
Instalment basisCurrent year
ReviewedQuarterly
The situation
A boutique fitness studio group in Victoria, British Columbia was paying instalments calculated on a prior year that no longer reflected the business. Inter-company balances between two related corporations that had never been reconciled was tying up $69,000 of cash.
What we did
We rebased the instalments on the current-year estimate rather than the prior-year default, and reconciled the inter-company accounts, papered the arrangement with a written agreement, and aligned both corporations’ year-ends.
The result
$69,000 of cash stayed in the business, the penalty cycle ended, and the instalment position is reviewed each quarter against actual results.
Case Study 4 · Sale and succession
Share Sale Restructured, $520,000 Less Tax On Closing — Family-Owned Wholesale Distributor, Winnipeg
A family-owned wholesale distributor in Winnipeg, Manitoba was preparing to sell. Due diligence surfaced passive assets sitting inside the operating company, disqualifying the shares, which would have reduced the price or killed the deal outright.
What we did
We cleaned up the historical file, rebuilt the trial balance from source documents, reconciled every bank and credit-card account, and issued a CSRS 4200 compilation with a proper basis-of-accounting note, and prepared the due-diligence package the buyer's advisers actually asked for.
The result
The deal closed at the agreed price. $520,000 of tax was saved against the structure originally proposed, with no post-closing adjustment.
Case Study 5 · Records and systems rebuilt
Books Rebuilt From Source, $20,500 In Unclaimed Input Tax Found — Specialty Food Importer, Moncton
Client: A specialty food importer · Where: Moncton, New Brunswick · Engagement: 4 weeks, fixed fee
Unclaimed tax found$20,500
Records rebuilt9 months
ProcessDocumented
The situation
A specialty food importer in Moncton, New Brunswick could not answer basic questions about its own numbers, because a shareholder loan account that had drifted for three years with no supporting entries sat between the bank statements and the ledger.
What we did
We separated personal and corporate spending, cleared the shareholder loan through a documented salary and dividend mix, and restated the comparative year, then documented the process so the work does not depend on any one person remembering how it was done.
The result
Records rebuilt and reconciled, $20,500 recovered in input tax credits that the old file could not support, and a documented monthly process now in place.
Case Study 6 · Missed incentive claimed
$117,000 Credit Claim Filed And Accepted Without Adjustment — 14-Person Design Agency, Surrey
Client: A 14-person design agency · Where: Surrey, British Columbia · Engagement: 3 weeks, fixed fee
Claim value$117,000
AcceptedWithout adjustment
RepeatableAnnually
The situation
A 14-person design agency in Surrey, British Columbia assumed the credits did not apply to a business its size. Inter-company balances between two related corporations that had never been reconciled meant they had applied all along.
What we did
We identified the qualifying activity, built the documentation to support it, and 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.
The result
$117,000 recovered. Because the eligibility analysis is on file, the same claim can be repeated each year with a fraction of the effort.
Reviewed for the 2025 tax year by Udit Gupta, Certified Tax Accountant. Figures describe representative engagements of this type; outcomes depend on your own facts. Client names and identifying details are omitted for confidentiality.
