6 worked Accounting Records Reconstruction 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 records reconstruction work, not a specific client's file.
Case Study 1 · Planning that cut the bill
$66,000 Saved By Correcting What Prior Filings Had Missed — Fitness Studio Group, Kitchener
Client: A boutique fitness studio group · Where: Kitchener, Ontario · Engagement: 10 weeks, fixed fee
Saving identified$66,000
RecurringYes
Positions documentedAll
The situation — A boutique fitness studio group, Kitchener, Ontario
A boutique fitness studio group in Kitchener, Ontario asked for a second opinion on accounting records reconstruction. That followed three years of rising tax. The review found capital assets written off in full in the year of purchase, with no fixed-asset schedule behind the deduction.
What we did for A boutique fitness studio group, Kitchener, Ontario
We built the comparison first: current structure against two alternatives. Then we valued work in progress on one consistent basis and documented the method, so the comparative year could be relied on.
The result — A boutique fitness studio group, Kitchener, Ontario
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 — Related-Company Pair, Edmonton
Client: A corporation sharing administration with a related company · Where: Edmonton, Alberta · Engagement: 7 weeks, fixed fee
Balance reduced by$59,000
Backlog cleared6 years
CollectionsHalted
The situation — A corporation sharing administration with a related company, Edmonton, Alberta
By the time a corporation sharing administration with a related company in Edmonton, Alberta called, 6 years were outstanding. The CRA had assessed on estimates. Underneath it sat a shareholder loan account that had drifted for three years with no supporting entries.
What we did for A corporation sharing administration with a related company, Edmonton, Alberta
We reconstructed the records year by year. We reconciled the general ledger to the GIFI schedules filed for each open year and corrected the two years where they disagreed. Each filing replaced an arbitrary assessment with a real one.
The result — A corporation sharing administration with a related company, Edmonton, Alberta
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 — Off-Calendar Year-End Supplier, Victoria
Client: A supplier with an off-calendar fiscal year-end · Where: Victoria, British Columbia · Engagement: 10 weeks, fixed fee
Cash returned$69,000
Instalment basisCurrent year
ReviewedQuarterly
The situation — A supplier with an off-calendar fiscal year-end, Victoria, British Columbia
A supplier with an off-calendar fiscal year-end in Victoria, British Columbia was paying instalments calculated on a prior year. That year no longer reflected the business. A bank that refused to renew an operating line without compliant statements was tying up $69,000 of cash.
What we did for A supplier with an off-calendar fiscal year-end, Victoria, British Columbia
We rebased the instalments on the current-year estimate rather than the prior-year default. Alongside that, we moved accruals, prepaids and depreciation into a documented month-end checklist, so they stopped being year-end discoveries.
The result — A supplier with an off-calendar fiscal year-end, Victoria, British Columbia
$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 — Two-Partner Engineering Firm, Winnipeg
The situation — A two-partner engineering firm, Winnipeg, Manitoba
A two-partner engineering firm in Winnipeg, Manitoba was preparing to sell. Due diligence surfaced passive assets sitting inside the operating company, disqualifying the shares. That would have reduced the price or killed the deal outright.
What we did for A two-partner engineering firm, Winnipeg, Manitoba
We cleaned up the historical file. We 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. Then we prepared the due-diligence package the buyer's advisers actually asked for.
The result — A two-partner engineering firm, Winnipeg, Manitoba
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, Moncton, New Brunswick
A specialty food importer in Moncton, New Brunswick could not answer basic questions about its own numbers. Work in progress carried at billing value one year and at cost the next, so neither year was comparable sat between the bank statements and the ledger.
What we did for A specialty food importer, Moncton, New Brunswick
We separated personal and corporate spending, cleared the shareholder loan through a documented salary and dividend mix, and restated the comparative year. We then documented the process so the work does not depend on any one person remembering how it was done.
The result — A specialty food importer, Moncton, New Brunswick
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 — Commercial Cleaning Contractor, Surrey
Client: A commercial cleaning contractor · Where: Surrey, British Columbia · Engagement: 3 weeks, fixed fee
Claim value$117,000
AcceptedWithout adjustment
RepeatableAnnually
The situation — A commercial cleaning contractor, Surrey, British Columbia
A commercial cleaning contractor in Surrey, British Columbia assumed the credits did not apply to a business its size. Year-end statements that arrived four months late and never tied to the bank meant they had applied all along.
What we did for A commercial cleaning contractor, Surrey, British Columbia
We identified the qualifying activity and built the documentation to support it. Then 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.
The result — A commercial cleaning contractor, Surrey, British Columbia
$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 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.
