6 Chart of Accounts Setup and Review 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 chart of accounts setup and review work, not a general example.
Case Study 1 · Planning that cut the bill
Remuneration Review Saved $72,000 Across Corporate And Personal Returns — 14-Person Design Agency, Barrie
Nothing was wrong at a 14-person design agency in Barrie, Ontario — the filings were on time and accurate. What they were not was planned. A bank that refused to renew an operating line without compliant statements had never been reviewed.
What we did
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, and ran the numbers across both the corporate and personal returns so the saving was real rather than deferred into someone else's hands.
The result
$72,000 came off the combined corporate and personal tax bill, and the structure holds for future years without further work.
Case Study 2 · Deadline rescue
8-Week Turnaround Beat The Deadline And Saved $32,500 — Growing Landscaping Company, Mississauga
Client: A growing landscaping company · Where: Mississauga, Ontario · Engagement: 8 weeks, fixed fee
Late-filing penalty avoided$32,500
Filed with11 days to spare
Next yearPapers ready
The situation
With the deadline for chart of accounts setup and review weeks away, a growing landscaping company in Mississauga, Ontario was carrying inter-company balances between two related corporations that had never been reconciled. The exposure if the date slipped was around $32,500.
What we did
We separated personal and corporate spending, cleared the shareholder loan through a documented salary and dividend mix, and restated the comparative year. The filing went in complete rather than provisional, so there was no amended return to follow.
The result
Filed with 11 days to spare. $32,500 in late-filing penalties avoided, and the working papers are ready for the following year.
Case Study 3 · Backlog brought current
Collections Halted And $115,000 Cut From A 3-Year Backlog — Regional Courier Operator, Saskatoon
By the time a regional courier operator in Saskatoon, Saskatchewan called, 3 years were outstanding and the CRA had assessed on estimates. Underneath it sat two sets of numbers — one in the accounting file, one the owner actually ran the business on.
What we did
We reconstructed the records year by year 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. Each filing replaced an arbitrary assessment with a real one.
The result
The account is current. Filing on real numbers rather than CRA estimates reduced the balance by $115,000, and a relief application addressed part of the accumulated interest.
Case Study 4 · CRA review defended
$76,000 Proposed Adjustment Withdrawn In Full — Machine-Shop Owner-Operator, Victoria
Client: A machine-shop owner-operator · Where: Victoria, British Columbia · Engagement: 7 weeks, fixed fee
Adjustment withdrawn$76,000
File closed in7 weeks
Penalties assessedNone
The situation
A machine-shop owner-operator in Victoria, British Columbia received a proposal letter opening a review of chart of accounts setup and review. The CRA had identified year-end statements that arrived four months late and never tied to the bank and proposed an adjustment of $76,000, with 30 days to respond.
What we did
We treated the response as an evidence exercise rather than an argument. We reconciled the inter-company accounts, papered the arrangement with a written agreement, and aligned both corporations’ year-ends, then indexed every supporting document against the specific line the auditor had questioned.
The result
The proposed adjustment was withdrawn in full — all $76,000 of it. The file closed in 7 weeks with no change to the assessed amounts and no penalty.
Case Study 5 · Cash and remittance control
Instalments Rebased, $115,000 Of Cash Returned To The Business — Two-Partner Engineering Firm, Toronto
A two-partner engineering firm in Toronto, Ontario was paying instalments calculated on a prior year that no longer reflected the business. A shareholder loan account that had drifted for three years with no supporting entries was tying up $115,000 of cash.
What we did
We rebased the instalments on the current-year estimate rather than the prior-year default, and 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.
The result
$115,000 of cash stayed in the business, the penalty cycle ended, and the instalment position is reviewed each quarter against actual results.
Case Study 6 · Objection and relief
Notice Of Objection Allowed In Full, $50,000 Reversed — Specialty Food Importer, Hamilton
A specialty food importer in Hamilton, Ontario had been reassessed for $50,000 and had 12 days left on the objection deadline. The reassessment rested on a bank that refused to renew an operating line without compliant statements.
What we did
We filed the objection inside the deadline with a complete submission rather than a placeholder, and separated personal and corporate spending, cleared the shareholder loan through a documented salary and dividend mix, and restated the comparative year.
The result
The appeals officer allowed the objection in full. $50,000 was reversed and the account returned to a nil balance.
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.
