6 Accounting Services for Sole Proprietors 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 services for sole proprietors work, not a general example.
Case Study 1 · Missed incentive claimed
$67,000 In Credits Claimed That Prior Filings Had Missed — Independent Pharmacy, Surrey
Client: An independent pharmacy · Where: Surrey, British Columbia · Engagement: 10 weeks, fixed fee
Credits claimed$67,000
Years adjusted6
Review outcomeNo adjustment
The situation
An independent pharmacy in Surrey, British Columbia had been filing for 6 years without ever claiming the incentives its activity qualified for. Behind that sat inter-company balances between two related corporations that had never been reconciled.
What we did
We tested each activity against the eligibility criteria rather than the description on the invoice, then 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
$67,000 in credits claimed, with the open prior years adjusted as well. The claim passed review without adjustment.
Case Study 2 · Sale and succession
Share Sale Restructured, $520,000 Less Tax On Closing — Growing Landscaping Company, Regina
Client: A growing landscaping company · Where: Regina, Saskatchewan · Engagement: 9 weeks, fixed fee
Tax saved on closing$520,000
PriceAs agreed
Post-closing adjustmentsNone
The situation
A growing landscaping company in Regina, Saskatchewan 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, separated personal and corporate spending, cleared the shareholder loan through a documented salary and dividend mix, and restated the comparative year, 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 3 · Backlog brought current
Collections Halted And $30,000 Cut From A 6-Year Backlog — Two-Partner Engineering Firm, Barrie
By the time a two-partner engineering firm in Barrie, Ontario called, 6 years were outstanding and the CRA had assessed on estimates. Underneath it sat a bank that refused to renew an operating line without compliant statements.
What we did
We reconstructed the records year by year and 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. 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 $30,000, and a relief application addressed part of the accumulated interest.
Client: A family-owned wholesale distributor · Where: Vancouver, British Columbia · Engagement: 4 weeks, fixed fee
Annual saving$9,500
ReorganisationTax-neutral
StructureMatches operations
The situation
A family-owned wholesale distributor in Vancouver, British Columbia was carrying inter-company balances between two related corporations that had never been reconciled, and every option for fixing it ran through a reorganisation that had to be done without triggering tax.
What we did
Working with the client's lawyer, we reconciled the inter-company accounts, papered the arrangement with a written agreement, and aligned both corporations’ year-ends and prepared the elections, resolutions and valuations the structure needed to stand up.
The result
The structure now matches the business. Annual saving of $9,500, and the reorganisation itself was tax-neutral.
Case Study 5 · Objection and relief
$57,000 Of Penalties And Interest Cancelled On Relief — 14-Person Design Agency, Halifax
Client: A 14-person design agency · Where: Halifax, Nova Scotia · Engagement: 6 weeks, fixed fee
Penalties and interest cancelled$57,000
Relief groundsAccepted
AssessmentAdjusted to filed position
The situation
An assessment of $57,000 landed at a 14-person design agency in Halifax, Nova Scotia following a desk review. The auditor had not seen the records behind two sets of numbers — one in the accounting file, one the owner actually ran the business on.
What we did
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, then set out the legislative basis for the position alongside the documents supporting it.
The result
$57,000 of penalties and interest was cancelled under the taxpayer relief provisions, and the underlying assessment was adjusted to match the filed position.
A machine-shop owner-operator in Kitchener, Ontario had already missed one deadline and was about to miss a second. Behind it sat year-end statements that arrived four months late and never tied to the bank, and a penalty of $76,000 was accruing.
What we did
We split the work into what had to happen before the deadline and what could follow it, then separated personal and corporate spending, cleared the shareholder loan through a documented salary and dividend mix, and restated the comparative year.
The result
The outstanding return was accepted as filed, and the taxpayer relief application cancelled $76,000 of the penalty already assessed on the earlier year.
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.
