6 worked Bookkeeping for Contractors 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 bookkeeping for contractors work, not a specific client's file.
Case Study 1 · Planning that cut the bill
$69,000 Saved By Correcting What Prior Filings Had Missed — Owner-Operated Trades Business, Calgary
Client: An owner-operated trades business · Where: Calgary, Alberta · Engagement: 9 weeks, fixed fee
Saving identified$69,000
RecurringYes
Positions documentedAll
The situation — An owner-operated trades business, Calgary, Alberta
An owner-operated trades business in Calgary, Alberta asked for a second opinion on bookkeeping for contractors. That followed three years of rising tax. The review found a payroll clearing account that had never been brought to zero, carrying a balance nobody could explain.
What we did for An owner-operated trades business, Calgary, Alberta
We built the comparison first: current structure against two alternatives. Then we cleared the payroll and sales tax clearing accounts every month and tied each remittance to the liability it settled.
The result — An owner-operated trades business, Calgary, Alberta
First-year saving of $69,000, with the same benefit recurring. Every position taken is documented and supported in the file.
Case Study 2 · Backlog brought current
Collections Halted And $132,000 Cut From A 7-Year Backlog — Equipment Rental Yard, Lethbridge
Client: An equipment rental yard · Where: Lethbridge, Alberta · Engagement: 3 weeks, fixed fee
Balance reduced by$132,000
Backlog cleared7 years
CollectionsHalted
The situation — An equipment rental yard, Lethbridge, Alberta
By the time an equipment rental yard in Lethbridge, Alberta called, 7 years were outstanding. The CRA had assessed on estimates. Underneath it sat meals and entertainment coded at full cost with the input tax credit claimed on the whole amount.
What we did for An equipment rental yard, Lethbridge, Alberta
We reconstructed the records year by year. We set up a documented chart of accounts, a receipt-capture workflow and a monthly reconciliation that closes within ten days of month-end. Each filing replaced an arbitrary assessment with a real one.
The result — An equipment rental yard, Lethbridge, Alberta
The account is current. Filing on real numbers rather than CRA estimates reduced the balance by $132,000, and a relief application addressed part of the accumulated interest.
Case Study 3 · Cash and remittance control
Instalments Rebased, $78,000 Of Cash Returned To The Business — Dental Hygiene Clinic, Kelowna
Client: A dental hygiene clinic · Where: Kelowna, British Columbia · Engagement: 8 weeks, fixed fee
Cash returned$78,000
Instalment basisCurrent year
ReviewedQuarterly
The situation — A dental hygiene clinic, Kelowna, British Columbia
A dental hygiene clinic in Kelowna, British Columbia was paying instalments calculated on a prior year. That year no longer reflected the business. Sales recorded from bank deposits, so processor fees, chargebacks and refunds appeared nowhere in the ledger was tying up $78,000 of cash.
What we did for A dental hygiene clinic, Kelowna, British Columbia
We rebased the instalments on the current-year estimate rather than the prior-year default. Alongside that, we reconciled receivables and payables to source documents and wrote off the balances that were genuinely uncollectible, with support.
The result — A dental hygiene clinic, Kelowna, British Columbia
$78,000 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
$725,000 Sheltered By The Lifetime Capital Gains Exemption — Subscription Box Retailer, Moncton
Client: A subscription box retailer · Where: Moncton, New Brunswick · Engagement: 10 weeks, fixed fee
Gain sheltered$725,000
ClosingOn schedule
Share qualificationMet
The situation — A subscription box retailer, Moncton, New Brunswick
A subscription box retailer in Moncton, New Brunswick had an offer on the table and 22 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, Moncton, New Brunswick
We purified the corporation so the shares met the qualifying tests. 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. All of it was done well ahead of the closing date.
The result — A subscription box retailer, Moncton, New Brunswick
The sale closed on schedule with $725,000 sheltered by the lifetime capital gains exemption across the shareholders.
Case Study 5 · Records and systems rebuilt
Books Rebuilt From Source, $14,500 In Unclaimed Input Tax Found — Wedding Photography Studio, Victoria
Client: A wedding photography studio · Where: Victoria, British Columbia · Engagement: 6 weeks, fixed fee
Unclaimed tax found$14,500
Records rebuilt21 months
ProcessDocumented
The situation — A wedding photography studio, Victoria, British Columbia
A wedding photography studio in Victoria, British Columbia could not answer basic questions about its own numbers. Three years of returns filed off numbers nobody could trace back to a bank statement sat between the bank statements and the ledger.
What we did for A wedding photography studio, Victoria, British Columbia
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. We then documented the process so the work does not depend on any one person remembering how it was done.
The result — A wedding photography studio, Victoria, British Columbia
Records rebuilt and reconciled, $14,500 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
$18,000 Credit Claim Filed And Accepted Without Adjustment — Courier Subcontractor, Kitchener
Client: A courier subcontractor paid by the drop · Where: Kitchener, Ontario · Engagement: 3 weeks, fixed fee
Claim value$18,000
AcceptedWithout adjustment
RepeatableAnnually
The situation — A courier subcontractor paid by the drop, Kitchener, Ontario
A courier subcontractor paid by the drop in Kitchener, Ontario assumed the credits did not apply to a business its size. Input tax credits claimed on receipts that had already been claimed once meant they had applied all along.
What we did for A courier subcontractor paid by the drop, Kitchener, Ontario
We identified the qualifying activity and built the documentation to support it. Then we separated the owner’s personal spending out of the corporate accounts and cleared the resulting shareholder loan properly.
The result — A courier subcontractor paid by the drop, Kitchener, Ontario
$18,000 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.
