6 worked Catch-Up Bookkeeping 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 catch-up bookkeeping work, not a specific client's file.
Case Study 1 · Sale and succession
Intergenerational Transfer Completed With $440,000 Deferred — Seasonal Food-Truck Operator, Burnaby
Client: A food-truck operator running two seasonal units · Where: Burnaby, British Columbia · Engagement: 9 weeks, fixed fee
Tax deferred$440,000
TransferCompleted
RecordsReview-ready
The situation — A food-truck operator running two seasonal units, Burnaby, British Columbia
A generational transfer at a food-truck operator running two seasonal units in Burnaby, British Columbia had been discussed for years without a plan. A shareholder loan balance that would have been picked up as income on closing meant the transfer as contemplated would have been fully taxable.
What we did for A food-truck operator running two seasonal units, Burnaby, British Columbia
We separated the owner’s personal spending out of the corporate accounts and cleared the resulting shareholder loan properly, sequencing the steps so each one was complete and documented before the next depended on it.
The result — A food-truck operator running two seasonal units, Burnaby, British Columbia
$440,000 of tax was deferred through the transfer, and the successor generation took over a corporation whose records stood up to review.
Case Study 2 · Backlog brought current
7 Years Filed, $55,000 Removed From The Assessed Balance — Equipment Rental Yard, Saskatoon
The situation — An equipment rental yard, Saskatoon, Saskatchewan
An equipment rental yard in Saskatoon, Saskatchewan had not filed for 7 years. The CRA had issued arbitrary assessments, and the business was carrying a receivables list that included invoices collected eleven months earlier on top of a growing interest balance.
What we did for An equipment rental yard, Saskatoon, Saskatchewan
We started with the oldest year and worked forward so each year's closing balances fed the next. 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, filing the years in sequence rather than all at once.
The result — An equipment rental yard, Saskatoon, Saskatchewan
Every year is now filed and assessed on actual figures. The notional assessments were vacated and $55,000 of the estimated balance came off, with a payment arrangement covering the rest.
Case Study 3 · Structure rebuilt
Corporate Structure Rebuilt For $42,000 Of Annual Savings — Subscription Box Retailer, Surrey
Client: A subscription box retailer · Where: Surrey, British Columbia · Engagement: 5 weeks, fixed fee
Saving per year$42,000
DocumentationComplete
Transfer basisRollover
The situation — A subscription box retailer, Surrey, British Columbia
The structure at a subscription box retailer in Surrey, British Columbia had been set up years earlier for a business that no longer existed, and meals and entertainment coded at full cost with the input tax credit claimed on the whole amount had become expensive.
What we did for A subscription box retailer, Surrey, British Columbia
We reconciled receivables and payables to source documents and wrote off the balances that were genuinely uncollectible, with support. The reorganisation used the rollover provisions rather than a taxable transfer, so no tax fell due on the restructuring itself.
The result — A subscription box retailer, Surrey, British Columbia
$42,000 of annual saving, achieved on a tax-deferred basis. The minute book, elections and valuations are all in the file.
Case Study 4 · Objection and relief
Notice Of Objection Allowed In Full, $35,000 Reversed — Courier Subcontractor, Winnipeg
Client: A courier subcontractor paid by the drop · Where: Winnipeg, Manitoba · Engagement: 5 weeks, fixed fee
Amount reversed$35,000
ObjectionAllowed in full
Account balanceNil
The situation — A courier subcontractor paid by the drop, Winnipeg, Manitoba
A courier subcontractor paid by the drop in Winnipeg, Manitoba had been reassessed for $35,000 and had 16 days left on the objection deadline. The reassessment rested on eighteen months of unreconciled transactions and a shoebox of receipts.
What we did for A courier subcontractor paid by the drop, Winnipeg, Manitoba
We filed the objection inside the deadline with a complete submission rather than a placeholder, and cleared the payroll and sales tax clearing accounts every month and tied each remittance to the liability it settled.
The result — A courier subcontractor paid by the drop, Winnipeg, Manitoba
The appeals officer allowed the objection in full. $35,000 was reversed and the account returned to a nil balance.
Client: A specialty coffee roaster · Where: Edmonton, Alberta · Engagement: 6 weeks, fixed fee
Penalty cancelled$122,000
Relief applicationGranted
ReturnAccepted as filed
The situation — A specialty coffee roaster, Edmonton, Alberta
A specialty coffee roaster in Edmonton, Alberta had already missed one deadline and was about to miss a second. Behind it sat three years of returns filed off numbers nobody could trace back to a bank statement, and a penalty of $122,000 was accruing.
What we did for A specialty coffee roaster, Edmonton, Alberta
We split the work into what had to happen before the deadline and what could follow it, then rebuilt sales from the processor settlement reports so gross sales, fees and refunds each landed in an account of their own.
The result — A specialty coffee roaster, Edmonton, Alberta
The outstanding return was accepted as filed, and the taxpayer relief application cancelled $122,000 of the penalty already assessed on the earlier year.
Case Study 6 · Records and systems rebuilt
Month-End Close Cut From 10 Weeks To 8 Days — Small Law Practice, Vancouver
Client: A small law practice · Where: Vancouver, British Columbia · Engagement: 8 weeks, fixed fee
Close time before10 weeks
Close time after8 days
Year-endReview, not rebuild
The situation — A small law practice, Vancouver, British Columbia
The accounting file at a small law practice in Vancouver, British Columbia was built on sales recorded from bank deposits, so processor fees, chargebacks and refunds appeared nowhere in the ledger. The year-end had taken 10 weeks each of the last three years.
What we did for A small law practice, Vancouver, British Columbia
We rebuilt the ledger from bank and card statements, matched every receipt to a transaction, and removed duplicated input tax credits before they became a review and moved the reconciliations into the monthly cycle, so the year-end stopped being a rebuild.
The result — A small law practice, Vancouver, British Columbia
The file reconciles. Month-end closes in 8 days instead of 10 weeks, and the year-end is a review rather than a reconstruction.
Reviewed for the 2025 tax year by Udit Gupta, Founder and Tax Accountant. 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.
