6 worked Bank Reconciliation Cleanup 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 bank reconciliation cleanup work, not a specific client's file.
Case Study 1 · Planning that cut the bill
$54,000 Cut From The Annual Tax Bill — Multi-Processor Online Seller, London
Client: An online seller reconciling three payment processors · Where: London, Ontario · Engagement: 7 weeks, fixed fee
First-year saving$54,000
RepeatsAnnually
Filing positionUnchanged in risk
The situation — An online seller reconciling three payment processors, London, Ontario
An online seller reconciling three payment processors in London, Ontario was compliant but paying more than it needed to. The prior year had been filed correctly. It still left input tax credits claimed on receipts that had already been claimed once on the table.
What we did for An online seller reconciling three payment processors, London, Ontario
We modelled the current position against the alternatives before changing anything. Then we set up a documented chart of accounts, a receipt-capture workflow and a monthly reconciliation that closes within ten days of month-end.
The result — An online seller reconciling three payment processors, London, Ontario
The change saved $54,000 in the first year and repeats annually. Nothing about the filings became more aggressive. The position is simply the one the rules already allowed.
Case Study 2 · Sale and succession
$270,000 Sheltered By The Lifetime Capital Gains Exemption — Subscription Box Retailer, Saskatoon
The situation — A subscription box retailer, Saskatoon, Saskatchewan
A subscription box retailer in Saskatoon, Saskatchewan had an offer on the table and 28 months to close. The shares did not qualify for the capital gains exemption. No valuation on file to support the price the parties had agreed was part of the reason.
What we did for A subscription box retailer, Saskatoon, Saskatchewan
We purified the corporation so the shares met the qualifying tests. We rebuilt the ledger from bank and card statements and matched every receipt to a transaction. We removed duplicated input tax credits before they became a review. All of it was done well ahead of the closing date.
The result — A subscription box retailer, Saskatoon, Saskatchewan
The sale closed on schedule with $270,000 sheltered by the lifetime capital gains exemption across the shareholders.
Case Study 3 · Deadline rescue
8-Week Turnaround Beat The Deadline And Saved $38,000 — Residential Cleaning Franchise, Halifax
Client: A residential cleaning franchise · Where: Halifax, Nova Scotia · Engagement: 8 weeks, fixed fee
Late-filing penalty avoided$38,000
Filed with21 days to spare
Next yearPapers ready
The situation — A residential cleaning franchise, Halifax, Nova Scotia
A residential cleaning franchise in Halifax, Nova Scotia was weeks away from the deadline for bank reconciliation cleanup. Behind that sat three years of returns filed off numbers nobody could trace back to a bank statement. The exposure if the date slipped was around $38,000.
What we did for A residential cleaning franchise, Halifax, Nova Scotia
We cleared the payroll and sales tax clearing accounts every month and tied each remittance to the liability it settled. The filing went in complete rather than provisional, so there was no amended return to follow.
The result — A residential cleaning franchise, Halifax, Nova Scotia
Filed with 21 days to spare. $38,000 in late-filing penalties avoided, and the working papers are ready for the following year.
Case Study 4 · Scaling without breaking
Second-Province Expansion Handled, $58,000 Of Cash Released — Specialty Coffee Roaster, Surrey
Client: A specialty coffee roaster · Where: Surrey, British Columbia · Engagement: 3 weeks, fixed fee
Cash released$58,000
New registrationsComplete on day one
Compliance gapsNone
The situation — A specialty coffee roaster, Surrey, British Columbia
Revenue at a specialty coffee roaster in Surrey, British Columbia was up sharply and cash was tighter than ever. Underneath it sat eighteen months of unreconciled transactions and a shoebox of receipts.
What we did for A specialty coffee roaster, Surrey, British Columbia
We converted the foreign-currency purchases at transaction-date rates and recorded the exchange difference at settlement instead of burying it in cost of sales. Every new obligation was set up before it was triggered, not after. That covered registration, remittance frequency and provincial filing.
The result — A specialty coffee roaster, Surrey, British Columbia
$58,000 of cash was released from the working capital cycle. The expansion completed with every registration and filing obligation covered from day one.
Case Study 5 · Backlog brought current
3 Years Filed, $56,000 Removed From The Assessed Balance — Dental Hygiene Clinic, Hamilton
The situation — A dental hygiene clinic, Hamilton, Ontario
A dental hygiene clinic in Hamilton, Ontario had not filed for 3 years. The CRA had issued arbitrary assessments. The business was carrying sales recorded from bank deposits, so processor fees, chargebacks and refunds appeared nowhere in the ledger. That came on top of a growing interest balance.
What we did for A dental hygiene clinic, Hamilton, Ontario
We started with the oldest year and worked forward so each year's closing balances fed the next. We recoded the meals and entertainment accounts to the statutory limit and reversed the over-claimed input tax credits before the next return went in. We filed the years in sequence rather than all at once.
The result — A dental hygiene clinic, Hamilton, Ontario
Every year is now filed and assessed on actual figures. The notional assessments were vacated and $56,000 of the estimated balance came off, with a payment arrangement covering the rest.
Case Study 6 · Records and systems rebuilt
Books Rebuilt From Source, $17,500 In Unclaimed Input Tax Found — Two-Location Cafe, Winnipeg
The situation — A two-location cafe, Winnipeg, Manitoba
A two-location cafe in Winnipeg, Manitoba could not answer basic questions about its own numbers. A bookkeeping file where owner draws, payroll and supplier payments all landed in the same account sat between the bank statements and the ledger.
What we did for A two-location cafe, Winnipeg, Manitoba
We rebuilt sales from the processor settlement reports so gross sales, fees and refunds each landed in an account of their own. We then documented the process so the work does not depend on any one person remembering how it was done.
The result — A two-location cafe, Winnipeg, Manitoba
Records rebuilt and reconciled, $17,500 recovered in input tax credits that the old file could not support, and a documented monthly process now in place.
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.
