6 Cost Accounting 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 cost accounting work, not a general example.
Case Study 1 · Backlog brought current
$115,000 Of Arbitrary Assessments Vacated After 3 Years — Boutique Fitness Studio Group, Halifax
Client: A boutique fitness studio group · Where: Halifax, Nova Scotia · Engagement: 8 weeks, fixed fee
Arbitrary tax vacated$115,000
Years brought current3
Account statusCurrent
The situation
3 years of unfiled returns had turned into notional assessments at a boutique fitness studio group in Halifax, Nova Scotia, with a shareholder loan account that had drifted for three years with no supporting entries underneath. Collections had already started.
What we did
We reconciled the inter-company accounts, papered the arrangement with a written agreement, and aligned both corporations’ year-ends, then filed every outstanding year in chronological order so the CRA could vacate the notional assessments cleanly.
The result
All 3 years were accepted as filed. $115,000 of arbitrarily assessed tax was vacated, collections action stopped, and the account is current for the first time in 3 years.
Case Study 2 · Sale and succession
$320,000 Sheltered By The Lifetime Capital Gains Exemption — Commercial Cleaning Contractor, Saskatoon
A commercial cleaning contractor in Saskatoon, Saskatchewan had an offer on the table and 18 months to close. The shares did not qualify for the capital gains exemption, and no valuation on file to support the price the parties had agreed was part of the reason.
What we did
We purified the corporation so the shares met the qualifying tests, then 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 well ahead of the closing date.
The result
The sale closed on schedule with $320,000 sheltered by the lifetime capital gains exemption across the shareholders.
Case Study 3 · Missed incentive claimed
$119,000 In Credits Claimed That Prior Filings Had Missed — Machine-Shop Owner-Operator, London
A machine-shop owner-operator in London, Ontario had been filing for 7 years without ever claiming the incentives its activity qualified for. Behind that sat year-end statements that arrived four months late and never tied to the bank.
What we did
We tested each activity against the eligibility criteria rather than the description on the invoice, then separated personal and corporate spending, cleared the shareholder loan through a documented salary and dividend mix, and restated the comparative year.
The result
$119,000 in credits claimed, with the open prior years adjusted as well. The claim passed review without adjustment.
Client: A 14-person design agency · Where: Burnaby, British Columbia · Engagement: 4 weeks, fixed fee
Proposed tax cleared$56,000
Review duration4 weeks
OutcomeNo change
The situation
A 14-person design agency in Burnaby, British Columbia was selected for review after year-end statements that arrived four months late and never tied to the bank showed up in the CRA's automated matching. The proposed adjustment on cost accounting came to $56,000.
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. 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. $56,000 of proposed tax came off the table, and the documentation now in place makes the next review a short one.
Case Study 5 · Scaling without breaking
Growth Handled Without A Missed Filing, $117,000 Freed — Family-Owned Wholesale Distributor, Brampton
A family-owned wholesale distributor in Brampton, Ontario was opening in a second province — different filing obligations, a different payroll regime, and inter-company balances between two related corporations that had never been reconciled already in the file.
What we did
We reconciled the inter-company accounts, papered the arrangement with a written agreement, and aligned both corporations’ year-ends and put monthly reporting in place so the owner could see the cash effect of growth while there was still time to act on it.
The result
Growth was absorbed without a compliance failure. $117,000 of cash was released, and the monthly reporting now flags a problem while it is still small.
Case Study 6 · Planning that cut the bill
Remuneration Review Saved $50,000 Across Corporate And Personal Returns — Two-Partner Engineering Firm, Regina
Nothing was wrong at a two-partner engineering firm in Regina, Saskatchewan — the filings were on time and accurate. What they were not was planned. A shareholder loan account that had drifted for three years with no supporting entries had never been reviewed.
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, 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
$50,000 came off the combined corporate and personal tax bill, and the structure holds for future years without further work.
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.
