6 Consolidated Financial Statements 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 consolidated financial statements work, not a general example.
Case Study 1 · Backlog brought current
Collections Halted And $75,000 Cut From A 3-Year Backlog — Commercial Cleaning Contractor, Vancouver
Client: A commercial cleaning contractor · Where: Vancouver, British Columbia · Engagement: 3 weeks, fixed fee
Balance reduced by$75,000
Backlog cleared3 years
CollectionsHalted
The situation
By the time a commercial cleaning contractor in Vancouver, British Columbia called, 3 years were outstanding and the CRA had assessed on estimates. Underneath it sat inter-company balances between two related corporations that had never been reconciled.
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 $75,000, and a relief application addressed part of the accumulated interest.
Case Study 2 · Objection and relief
Desk-Review Assessment Of $12,500 Vacated — Family-Owned Wholesale Distributor, Mississauga
A family-owned wholesale distributor in Mississauga, Ontario was carrying $12,500 of penalties and interest arising from year-end statements that arrived four months late and never tied to the bank, much of it accumulated during a period the CRA itself had delayed.
What we did
We reconciled the inter-company accounts, papered the arrangement with a written agreement, and aligned both corporations’ year-ends and framed the relief application on the specific grounds the CRA guidelines recognise rather than on general hardship.
The result
The assessment was vacated. $12,500 came off the account, and the documentation now on file makes the same position straightforward to defend next time.
Case Study 3 · Records and systems rebuilt
Month-End Close Cut From 5 Weeks To 8 Days — Independent Pharmacy, Edmonton
Client: An independent pharmacy · Where: Edmonton, Alberta · Engagement: 8 weeks, fixed fee
Close time before5 weeks
Close time after8 days
Year-endReview, not rebuild
The situation
The accounting file at an independent pharmacy in Edmonton, Alberta was built on a bank that refused to renew an operating line without compliant statements. The year-end had taken 5 weeks each of the last three years.
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 moved the reconciliations into the monthly cycle, so the year-end stopped being a rebuild.
The result
The file reconciles. Month-end closes in 8 days instead of 5 weeks, and the year-end is a review rather than a reconstruction.
Case Study 4 · Planning that cut the bill
$50,000 Cut From The Annual Tax Bill — Boutique Fitness Studio Group, Ottawa
Client: A boutique fitness studio group · Where: Ottawa, Ontario · Engagement: 10 weeks, fixed fee
First-year saving$50,000
RepeatsAnnually
Filing positionUnchanged in risk
The situation
A boutique fitness studio group in Ottawa, Ontario was compliant but paying more than it needed to. The prior year had been filed correctly and still left two sets of numbers — one in the accounting file, one the owner actually ran the business on on the table.
What we did
We modelled the current position against the alternatives before changing anything, then separated personal and corporate spending, cleared the shareholder loan through a documented salary and dividend mix, and restated the comparative year.
The result
The change saved $50,000 in the first year and repeats annually. Nothing about the filings became more aggressive; the position is simply the one the rules already allowed.
A 14-person design agency in Winnipeg, Manitoba was selected for review after a shareholder loan account that had drifted for three years with no supporting entries showed up in the CRA's automated matching. The proposed adjustment on consolidated financial statements came to $80,000.
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. Every figure in the response traced to a source record the auditor could verify without asking a second question.
The result
The review closed with no change. $80,000 of proposed tax came off the table, and the documentation now in place makes the next review a short one.
Case Study 6 · Sale and succession
Share Sale Restructured, $275,000 Less Tax On Closing — Growing Landscaping Company, Hamilton
Client: A growing landscaping company · Where: Hamilton, Ontario · Engagement: 9 weeks, fixed fee
Tax saved on closing$275,000
PriceAs agreed
Post-closing adjustmentsNone
The situation
A growing landscaping company in Hamilton, Ontario was preparing to sell. Due diligence surfaced retained cash well above what the business needed to operate, which would have reduced the price or killed the deal outright.
What we did
We cleaned up the historical file, reconciled the inter-company accounts, papered the arrangement with a written agreement, and aligned both corporations’ year-ends, and prepared the due-diligence package the buyer's advisers actually asked for.
The result
The deal closed at the agreed price. $275,000 of tax was saved against the structure originally proposed, with no post-closing adjustment.
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.
