Accounting Services for Professional Corporations Case Studies
6 worked Accounting Services for Professional Corporations 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 services for professional corporations work, not a specific client's file.
Case Study 1 · Objection and relief
Desk-Review Assessment Of $71,000 Vacated — Independent Pharmacy, Surrey
Client: An independent pharmacy · Where: Surrey, British Columbia · Engagement: 6 weeks, fixed fee
Assessment vacated$71,000
Supporting recordsNow on file
AccountCleared
The situation — An independent pharmacy, Surrey, British Columbia
An independent pharmacy in Surrey, British Columbia was carrying $71,000 of penalties and interest. The charges arose from work in progress carried at billing value one year and at cost the next, so neither year was comparable. Much of that amount accumulated during a period the CRA itself had delayed.
What we did for An independent pharmacy, Surrey, British Columbia
We reconciled the general ledger to the GIFI schedules filed for each open year and corrected the two years where they disagreed. We framed the relief application on the specific grounds the CRA guidelines recognise rather than on general hardship.
The result — An independent pharmacy, Surrey, British Columbia
The assessment was vacated. $71,000 came off the account, and the documentation now on file makes the same position straightforward to defend next time.
Case Study 2 · Sale and succession
$830,000 Sheltered By The Lifetime Capital Gains Exemption — First Year-End Corporation, Windsor
Client: An owner-managed corporation preparing its first year-end · Where: Windsor, Ontario · Engagement: 10 weeks, fixed fee
Gain sheltered$830,000
ClosingOn schedule
Share qualificationMet
The situation — An owner-managed corporation preparing its first year-end, Windsor, Ontario
An owner-managed corporation preparing its first year-end in Windsor, Ontario had an offer on the table and 9 months to close. The shares did not qualify for the capital gains exemption. A single shareholder holding every share, with no room to multiply the exemption was part of the reason.
What we did for An owner-managed corporation preparing its first year-end, Windsor, Ontario
We purified the corporation so the shares met the qualifying tests. We reconciled the inter-company accounts, papered the arrangement with a written agreement, and aligned both corporations’ year-ends. All of it was done well ahead of the closing date.
The result — An owner-managed corporation preparing its first year-end, Windsor, Ontario
The sale closed on schedule with $830,000 sheltered by the lifetime capital gains exemption across the shareholders.
Case Study 3 · Scaling without breaking
Scaled To 69 Staff With $112,000 Of Working Capital Freed — Specialty Food Importer, Edmonton
Client: A specialty food importer · Where: Edmonton, Alberta · Engagement: 8 weeks, fixed fee
Headcount reached69
Working capital freed$112,000
Missed deadlinesZero
The situation — A specialty food importer, Edmonton, Alberta
A specialty food importer in Edmonton, Alberta was growing fast, with headcount reaching 69 in eighteen months. The back office had not kept up. Inter-company balances between two related corporations that had never been reconciled was the first thing to break.
What we did for A specialty food importer, Edmonton, Alberta
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. We built the compliance calendar for the size the business was becoming rather than the size it had been.
The result — A specialty food importer, Edmonton, Alberta
The business reached 69 staff with no missed remittance and no late filing. $112,000 of working capital was freed in the process.
Case Study 4 · Records and systems rebuilt
Month-End Close Cut From 8 Weeks To 8 Days — Quarterly-Close Practice, Regina
Client: A professional practice that closes its books quarterly · Where: Regina, Saskatchewan · Engagement: 11 weeks, fixed fee
Close time before8 weeks
Close time after8 days
Year-endReview, not rebuild
The situation — A professional practice that closes its books quarterly, Regina, Saskatchewan
The accounting file at a professional practice that closes its books quarterly in Regina, Saskatchewan had a weak foundation. It was built on a year-end moved informally, leaving twelve months of trading reported as though nothing had changed. The year-end had taken 8 weeks each of the last three years.
What we did for A professional practice that closes its books quarterly, Regina, Saskatchewan
We valued work in progress on one consistent basis and documented the method, so the comparative year could be relied on. We also moved the reconciliations into the monthly cycle, so the year-end stopped being a rebuild.
The result — A professional practice that closes its books quarterly, Regina, Saskatchewan
The file reconciles. Month-end closes in 8 days instead of 8 weeks, and the year-end is a review rather than a reconstruction.
The situation — A regional courier operator, Toronto, Ontario
The structure at a regional courier operator in Toronto, Ontario needed fixing. The file was carrying two sets of numbers — one in the accounting file, one the owner actually ran the business on. Every option for fixing it ran through a reorganisation that had to be done without triggering tax.
What we did for A regional courier operator, Toronto, Ontario
We worked with the client's lawyer. Together, 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. We also prepared the elections, resolutions and valuations the structure needed to stand up.
The result — A regional courier operator, Toronto, Ontario
The structure now matches the business. Annual saving of $32,000, and the reorganisation itself was tax-neutral.
Case Study 6 · Missed incentive claimed
$70,000 In Credits Claimed That Prior Filings Had Missed — Off-Calendar Year-End Supplier, Saskatoon
Client: A supplier with an off-calendar fiscal year-end · Where: Saskatoon, Saskatchewan · Engagement: 5 weeks, fixed fee
Credits claimed$70,000
Years adjusted4
Review outcomeNo adjustment
The situation — A supplier with an off-calendar fiscal year-end, Saskatoon, Saskatchewan
A supplier with an off-calendar fiscal year-end in Saskatoon, Saskatchewan had been filing for 4 years. In that time, the incentives its activity qualified for were never claimed. Behind that sat capital assets written off in full in the year of purchase, with no fixed-asset schedule behind the deduction.
What we did for A supplier with an off-calendar fiscal year-end, Saskatoon, Saskatchewan
We tested each activity against the eligibility criteria rather than the description on the invoice. Then 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, Saskatoon, Saskatchewan
$70,000 in credits claimed, with the open prior years adjusted as well. The claim passed review without adjustment.
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.
