6 worked Bookkeeping Review Services 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 review services work, not a specific client's file.
Case Study 1 · Backlog brought current
$30,000 Of Arbitrary Assessments Vacated After 6 Years — Specialty Coffee Roaster, Windsor
The situation — A specialty coffee roaster, Windsor, Ontario
6 years of unfiled returns had turned into notional assessments at a specialty coffee roaster in Windsor, Ontario. Underneath lay eighteen months of unreconciled transactions and a shoebox of receipts. Collections had already started.
What we did for A specialty coffee roaster, Windsor, Ontario
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 filed every outstanding year in chronological order so the CRA could vacate the notional assessments cleanly.
The result — A specialty coffee roaster, Windsor, Ontario
All 6 years were accepted as filed. $30,000 of arbitrarily assessed tax was vacated, collections action stopped, and the account is current for the first time in 6 years.
Case Study 2 · Objection and relief
Desk-Review Assessment Of $60,000 Vacated — Mobile Pet-Grooming Company, Kitchener
Client: A mobile pet-grooming company · Where: Kitchener, Ontario · Engagement: 10 weeks, fixed fee
Assessment vacated$60,000
Supporting recordsNow on file
AccountCleared
The situation — A mobile pet-grooming company, Kitchener, Ontario
A mobile pet-grooming company in Kitchener, Ontario was carrying $60,000 of penalties and interest. The charges arose from a payroll clearing account that had never been brought to zero, carrying a balance nobody could explain. Much of that amount accumulated during a period the CRA itself had delayed.
What we did for A mobile pet-grooming company, Kitchener, Ontario
We separated the owner’s personal spending out of the corporate accounts and cleared the resulting shareholder loan properly. We framed the relief application on the specific grounds the CRA guidelines recognise rather than on general hardship.
The result — A mobile pet-grooming company, Kitchener, Ontario
The assessment was vacated. $60,000 came off the account, and the documentation now on file makes the same position straightforward to defend next time.
Case Study 3 · Records and systems rebuilt
Books Rebuilt From Source, $3,400 In Unclaimed Input Tax Found — Courier Subcontractor, Burnaby
Client: A courier subcontractor paid by the drop · Where: Burnaby, British Columbia · Engagement: 10 weeks, fixed fee
Unclaimed tax found$3,400
Records rebuilt34 months
ProcessDocumented
The situation — A courier subcontractor paid by the drop, Burnaby, British Columbia
A courier subcontractor paid by the drop in Burnaby, British Columbia could not answer basic questions about its own numbers. Meals and entertainment coded at full cost with the input tax credit claimed on the whole amount sat between the bank statements and the ledger.
What we did for A courier subcontractor paid by the drop, Burnaby, British Columbia
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 courier subcontractor paid by the drop, Burnaby, British Columbia
Records rebuilt and reconciled, $3,400 recovered in input tax credits that the old file could not support, and a documented monthly process now in place.
Case Study 4 · Planning that cut the bill
$64,000 Cut From The Annual Tax Bill — Wedding Photography Studio, Halifax
Client: A wedding photography studio · Where: Halifax, Nova Scotia · Engagement: 8 weeks, fixed fee
First-year saving$64,000
RepeatsAnnually
Filing positionUnchanged in risk
The situation — A wedding photography studio, Halifax, Nova Scotia
A wedding photography studio in Halifax, Nova Scotia was compliant but paying more than it needed to. The prior year had been filed correctly. It still left sales recorded from bank deposits, so processor fees, chargebacks and refunds appeared nowhere in the ledger on the table.
What we did for A wedding photography studio, Halifax, Nova Scotia
We modelled the current position against the alternatives before changing anything. Then 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.
The result — A wedding photography studio, Halifax, Nova Scotia
The change saved $64,000 in the first year and repeats annually. Nothing about the filings became more aggressive. The position is simply the one the rules already allowed.
The situation — A subscription box retailer, Winnipeg, Manitoba
A subscription box retailer in Winnipeg, Manitoba was selected for review. A receivables list that included invoices collected eleven months earlier had shown up in the CRA's automated matching. The proposed adjustment on bookkeeping review services came to $29,000.
What we did for A subscription box retailer, Winnipeg, Manitoba
We set up a documented chart of accounts, a receipt-capture workflow and a monthly reconciliation that closes within ten days of month-end. Every figure in the response traced to a source record the auditor could verify without asking a second question.
The result — A subscription box retailer, Winnipeg, Manitoba
The review closed with no change. $29,000 of proposed tax came off the table, and the documentation now in place makes the next review a short one.
Case Study 6 · Sale and succession
$325,000 Sheltered By The Lifetime Capital Gains Exemption — Dental Hygiene Clinic, Mississauga
The situation — A dental hygiene clinic, Mississauga, Ontario
A dental hygiene clinic in Mississauga, Ontario had an offer on the table and 13 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 A dental hygiene clinic, Mississauga, Ontario
We purified the corporation so the shares met the qualifying tests. We reconciled receivables and payables to source documents and wrote off the balances that were genuinely uncollectible, with support. All of it was done well ahead of the closing date.
The result — A dental hygiene clinic, Mississauga, Ontario
The sale closed on schedule with $325,000 sheltered by the lifetime capital gains exemption across the shareholders.
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.
