6 Cash Flow Statement Preparation 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 cash flow statement preparation work, not a general example.
Case Study 1 · Structure rebuilt
Reorganisation Completed Tax-Deferred, $40,000 Saved Each Year — Independent Pharmacy, Vancouver
Client: An independent pharmacy · Where: Vancouver, British Columbia · Engagement: 7 weeks, fixed fee
Annual saving$40,000
Tax on reorganisationDeferred
Elections filedOn time
The situation
An independent pharmacy in Vancouver, British Columbia had outgrown the structure it started with. Year-end statements that arrived four months late and never tied to the bank was the immediate problem; the longer-term one was that the structure blocked the next step.
What we did
We mapped the current structure, modelled the target, 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 — with the tax-deferred elections filed on time and the supporting valuations documented.
The result
The reorganisation completed without triggering tax, and the new structure saves approximately $40,000 a year while removing the exposure the old one carried.
Case Study 2 · Objection and relief
$69,000 Of Penalties And Interest Cancelled On Relief — Boutique Fitness Studio Group, Windsor
Client: A boutique fitness studio group · Where: Windsor, Ontario · Engagement: 3 weeks, fixed fee
Penalties and interest cancelled$69,000
Relief groundsAccepted
AssessmentAdjusted to filed position
The situation
An assessment of $69,000 landed at a boutique fitness studio group in Windsor, Ontario following a desk review. The auditor had not seen the records behind a bank that refused to renew an operating line without compliant statements.
What we did
We reconciled the inter-company accounts, papered the arrangement with a written agreement, and aligned both corporations’ year-ends, then set out the legislative basis for the position alongside the documents supporting it.
The result
$69,000 of penalties and interest was cancelled under the taxpayer relief provisions, and the underlying assessment was adjusted to match the filed position.
Case Study 3 · Deadline rescue
Filed On Time From A Standing Start, $110,000 Penalty Avoided — 14-Person Design Agency, Saskatoon
A 14-person design agency in Saskatoon, Saskatchewan came to us 11 weeks before its filing deadline with two sets of numbers — one in the accounting file, one the owner actually ran the business on. A late filing would have triggered a penalty of roughly $110,000 before interest.
What we did
We worked backwards from the deadline. 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, prioritising the items that actually gated the filing and deferring everything that did not.
The result
The return was filed on time and complete. The $110,000 penalty never arose, and the compliance calendar we set means the next deadline is scheduled rather than discovered.
Case Study 4 · Records and systems rebuilt
11 Months Reconciled And $14,000 Of Input Tax Recovered — Growing Landscaping Company, Mississauga
Client: A growing landscaping company · Where: Mississauga, Ontario · Engagement: 5 weeks, fixed fee
Months reconciled11
Input tax recovered$14,000
Close time9 days
The situation
A growing landscaping company in Mississauga, Ontario was carrying a shareholder loan account that had drifted for three years with no supporting entries. Nothing reconciled, and every filing started with 11 months of cleanup.
What we did
We rebuilt from source rather than correcting on top of the existing file. We separated personal and corporate spending, cleared the shareholder loan through a documented salary and dividend mix, and restated the comparative year, then set the routine that keeps it clean.
The result
11 months reconciled to the bank. The close now takes 9 days, and $14,000 of previously unclaimable input tax was recovered in the process.
Client: A regional courier operator · Where: Moncton, New Brunswick · Engagement: 11 weeks, fixed fee
Overpayment refunded$83,000
Late remittances sinceZero
ScheduleAutomated
The situation
Remittances at a regional courier operator in Moncton, New Brunswick were consistently late by a few days, which was enough to trigger penalties every quarter. Behind it sat inter-company balances between two related corporations that had never been reconciled.
What we did
We 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, then moved the remittance dates into a scheduled process rather than a monthly decision.
The result
Penalties stopped from the following remittance onwards, and $83,000 of overpaid instalments was refunded.
Case Study 6 · Planning that cut the bill
$55,000 Cut From The Annual Tax Bill — Machine-Shop Owner-Operator, London
A machine-shop owner-operator in London, Ontario was compliant but paying more than it needed to. The prior year had been filed correctly and still left year-end statements that arrived four months late and never tied to the bank on the table.
What we did
We modelled the current position against the alternatives before changing anything, then reconciled the inter-company accounts, papered the arrangement with a written agreement, and aligned both corporations’ year-ends.
The result
The change saved $55,000 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 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.
