6 worked Chart of Accounts Setup and Review 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 chart of accounts setup and review work, not a specific client's file.
Case Study 1 · Planning that cut the bill
Remuneration Review Saved $72,000 Across Corporate And Personal Returns — Small Law Practice, Barrie
Client: A small law practice · Where: Barrie, Ontario · Engagement: 8 weeks, fixed fee
Combined saving$72,000
ScopeCorporate + personal
Future yearsNo rework needed
The situation — A small law practice, Barrie, Ontario
Nothing was wrong at a small law practice in Barrie, Ontario — the filings were on time and accurate. What they were not was planned. A bookkeeping file where owner draws, payroll and supplier payments all landed in the same account had never been reviewed.
What we did for A small law practice, Barrie, Ontario
We separated the owner’s personal spending out of the corporate accounts and cleared the resulting shareholder loan properly, 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 — A small law practice, Barrie, Ontario
$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 — Wedding Photography Studio, Mississauga
Client: A wedding photography studio · Where: Mississauga, Ontario · Engagement: 8 weeks, fixed fee
Late-filing penalty avoided$32,500
Filed with11 days to spare
Next yearPapers ready
The situation — A wedding photography studio, Mississauga, Ontario
With the deadline for chart of accounts setup and review weeks away, a wedding photography studio in Mississauga, Ontario was carrying sales recorded from bank deposits, so processor fees, chargebacks and refunds appeared nowhere in the ledger. The exposure if the date slipped was around $32,500.
What we did for A wedding photography studio, Mississauga, Ontario
We cleared the payroll and sales tax clearing accounts every month and tied each remittance to the liability it settled. The filing went in complete rather than provisional, so there was no amended return to follow.
The result — A wedding photography studio, Mississauga, Ontario
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 — Seasonal Food-Truck Operator, Saskatoon
Client: A food-truck operator running two seasonal units · Where: Saskatoon, Saskatchewan · Engagement: 9 weeks, fixed fee
Balance reduced by$115,000
Backlog cleared3 years
CollectionsHalted
The situation — A food-truck operator running two seasonal units, Saskatoon, Saskatchewan
By the time a food-truck operator running two seasonal units in Saskatoon, Saskatchewan called, 3 years were outstanding and the CRA had assessed on estimates. Underneath it sat eighteen months of unreconciled transactions and a shoebox of receipts.
What we did for A food-truck operator running two seasonal units, Saskatoon, Saskatchewan
We reconstructed the records year by year and rebuilt sales from the processor settlement reports so gross sales, fees and refunds each landed in an account of their own. Each filing replaced an arbitrary assessment with a real one.
The result — A food-truck operator running two seasonal units, Saskatoon, Saskatchewan
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 — Multi-Processor Online Seller, Victoria
Client: An online seller reconciling three payment processors · Where: Victoria, British Columbia · Engagement: 7 weeks, fixed fee
Adjustment withdrawn$76,000
File closed in7 weeks
Penalties assessedNone
The situation — An online seller reconciling three payment processors, Victoria, British Columbia
An online seller reconciling three payment processors in Victoria, British Columbia received a proposal letter opening a review of chart of accounts setup and review. The CRA had identified three years of returns filed off numbers nobody could trace back to a bank statement and proposed an adjustment of $76,000, with 30 days to respond.
What we did for An online seller reconciling three payment processors, Victoria, British Columbia
We treated the response as an evidence exercise rather than an argument. We set up a documented chart of accounts, a receipt-capture workflow and a monthly reconciliation that closes within ten days of month-end, then indexed every supporting document against the specific line the auditor had questioned.
The result — An online seller reconciling three payment processors, Victoria, British Columbia
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 — Subscription Box Retailer, Toronto
The situation — A subscription box retailer, Toronto, Ontario
A subscription box retailer in Toronto, Ontario was paying instalments calculated on a prior year that no longer reflected the business. Meals and entertainment coded at full cost with the input tax credit claimed on the whole amount was tying up $115,000 of cash.
What we did for A subscription box retailer, Toronto, Ontario
We rebased the instalments on the current-year estimate rather than the prior-year default, and 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 subscription box retailer, Toronto, Ontario
$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 — Residential Cleaning Franchise, Hamilton
The situation — A residential cleaning franchise, Hamilton, Ontario
A residential cleaning franchise in Hamilton, Ontario had been reassessed for $50,000 and had 12 days left on the objection deadline. The reassessment rested on input tax credits claimed on receipts that had already been claimed once.
What we did for A residential cleaning franchise, Hamilton, Ontario
We filed the objection inside the deadline with a complete submission rather than a placeholder, and reconciled receivables and payables to source documents and wrote off the balances that were genuinely uncollectible, with support.
The result — A residential cleaning franchise, Hamilton, Ontario
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, 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.
