6 worked Business Valuation Coordination 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 business valuation coordination work, not a specific client's file.
Case Study 1 · Records and systems rebuilt
12 Months Reconciled And $5,700 Of Input Tax Recovered — Corporation Facing Covenant Test, Edmonton
Client: A corporation approaching a covenant test date · Where: Edmonton, Alberta · Engagement: 8 weeks, fixed fee
Months reconciled12
Input tax recovered$5,700
Close time6 days
The situation — A corporation approaching a covenant test date, Edmonton, Alberta
Nothing reconciled at a corporation approaching a covenant test date in Edmonton, Alberta. Every filing started with 12 months of cleanup. The file was carrying a covenant breach discovered only when the bank called.
What we did for A corporation approaching a covenant test date, Edmonton, Alberta
We rebuilt from source rather than correcting on top of the existing file. We modelled the covenant ratios monthly and restructured the debt before the next test date rather than after it. Then we set the routine that keeps it clean.
The result — A corporation approaching a covenant test date, Edmonton, Alberta
12 months reconciled to the bank. The close now takes 6 days, and $5,700 of previously unclaimable input tax was recovered in the process.
Case Study 2 · Backlog brought current
Collections Halted And $68,000 Cut From A 6-Year Backlog — First Finance Hire, Red Deer
Client: A company hiring its first finance staff · Where: Red Deer, Alberta · Engagement: 10 weeks, fixed fee
Balance reduced by$68,000
Backlog cleared6 years
CollectionsHalted
The situation — A company hiring its first finance staff, Red Deer, Alberta
By the time a company hiring its first finance staff in Red Deer, Alberta called, 6 years were outstanding. The CRA had assessed on estimates. Underneath it sat a borrowing drawn for an unrelated personal purchase with the interest claimed against the business.
What we did for A company hiring its first finance staff, Red Deer, Alberta
We reconstructed the records year by year. We built a rolling thirteen-week cash-flow model, tightened collections, and renegotiated supplier terms so the growth stopped consuming the bank balance. Each filing replaced an arbitrary assessment with a real one.
The result — A company hiring its first finance staff, Red Deer, Alberta
The account is current. Filing on real numbers rather than CRA estimates reduced the balance by $68,000, and a relief application addressed part of the accumulated interest.
Case Study 3 · Scaling without breaking
Growth Handled Without A Missed Filing, $82,000 Freed — Mid-Sized Services Firm, Ottawa
Client: A mid-sized professional services firm · Where: Ottawa, Ontario · Engagement: 6 weeks, fixed fee
Cash freed$82,000
Compliance failuresNone
ReportingMonthly
The situation — A mid-sized professional services firm, Ottawa, Ontario
A mid-sized professional services firm in Ottawa, Ontario was opening in a second province. That meant different filing obligations and a different payroll regime. An owner making hiring decisions on last quarter’s bank balance already sat in the file.
What we did for A mid-sized professional services firm, Ottawa, Ontario
We added the balance sheet and a cash view to the monthly package, so the owner saw working capital move rather than only profit. We then put monthly reporting in place. That let the owner see the cash effect of growth while there was still time to act on it.
The result — A mid-sized professional services firm, Ottawa, Ontario
Growth was absorbed without a compliance failure. $82,000 of cash was released, and the monthly reporting now flags a problem while it is still small.
Case Study 4 · Deadline rescue
6-Week Turnaround Beat The Deadline And Saved $29,000 — Expanding Manufacturer, Victoria
Client: A manufacturer planning a plant expansion · Where: Victoria, British Columbia · Engagement: 6 weeks, fixed fee
Late-filing penalty avoided$29,000
Filed with23 days to spare
Next yearPapers ready
The situation — A manufacturer planning a plant expansion, Victoria, British Columbia
A manufacturer planning a plant expansion in Victoria, British Columbia was weeks away from the deadline for business valuation coordination. Behind that sat a monthly report that stopped at the income statement, with no balance sheet and no cash view. The exposure if the date slipped was around $29,000.
What we did for A manufacturer planning a plant expansion, Victoria, British Columbia
We separated customer prepayments from earned revenue in the reporting, so the cash position and the tax position were visible at the same time. The filing went in complete rather than provisional, so there was no amended return to follow.
The result — A manufacturer planning a plant expansion, Victoria, British Columbia
Filed with 23 days to spare. $29,000 in late-filing penalties avoided, and the working papers are ready for the following year.
Case Study 5 · Sale and succession
$875,000 Sheltered By The Lifetime Capital Gains Exemption — Fast-Growing E-Commerce Brand, Winnipeg
The situation — A fast-growing e-commerce brand, Winnipeg, Manitoba
A fast-growing e-commerce brand in Winnipeg, Manitoba had an offer on the table and 12 months to close. The shares did not qualify for the capital gains exemption. A minute book with no resolutions behind a decade of dividends was part of the reason.
What we did for A fast-growing e-commerce brand, Winnipeg, Manitoba
We purified the corporation so the shares met the qualifying tests. We produced a board-ready monthly package — cash, margin, pipeline and covenant headroom — that replaced a spreadsheet nobody trusted. All of it was done well ahead of the closing date.
The result — A fast-growing e-commerce brand, Winnipeg, Manitoba
The sale closed on schedule with $875,000 sheltered by the lifetime capital gains exemption across the shareholders.
Case Study 6 · Planning that cut the bill
$15,000 Cut From The Annual Tax Bill — Practice Adding Partners, Windsor
Client: A professional practice adding partners · Where: Windsor, Ontario · Engagement: 5 weeks, fixed fee
First-year saving$15,000
RepeatsAnnually
Filing positionUnchanged in risk
The situation — A professional practice adding partners, Windsor, Ontario
A professional practice adding partners in Windsor, Ontario was compliant but paying more than it needed to. The prior year had been filed correctly. It still left revenue up 40% year over year and a bank balance that kept falling on the table.
What we did for A professional practice adding partners, Windsor, Ontario
We modelled the current position against the alternatives before changing anything. Then we rebuilt the reporting around gross margin by service line, which showed two of five offerings were losing money at the current price.
The result — A professional practice adding partners, Windsor, Ontario
The change saved $15,000 in the first year and repeats annually. Nothing about the filings became more aggressive. The position is simply the one the rules already allowed.
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.
