6 Department Profitability Analysis 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 department profitability analysis work, not a general example.
Case Study 1 · Deadline rescue
Filed On Time From A Standing Start, $43,000 Penalty Avoided — Construction Company Bidding Larger, Guelph
Client: A construction company bidding larger contracts · Where: Guelph, Ontario · Engagement: 10 weeks, fixed fee
Penalty avoided$43,000
Turnaround10 weeks
FiledOn time
The situation
A construction company bidding larger contracts in Guelph, Ontario came to us 10 weeks before its filing deadline with revenue up 40% year over year and a bank balance that kept falling. A late filing would have triggered a penalty of roughly $43,000 before interest.
What we did
We worked backwards from the deadline. We built a rolling thirteen-week cash-flow model, tightened collections, and renegotiated supplier terms so the growth stopped consuming the bank balance, prioritising the items that actually gated the filing and deferring everything that did not.
The result
The return was filed on time and complete. The $43,000 penalty never arose, and the compliance calendar we set means the next deadline is scheduled rather than discovered.
Case Study 2 · Records and systems rebuilt
Books Rebuilt From Source, $16,000 In Unclaimed Input Tax Found — Family Business Planning Succession, Vancouver
Client: A family business planning succession · Where: Vancouver, British Columbia · Engagement: 9 weeks, fixed fee
Unclaimed tax found$16,000
Records rebuilt31 months
ProcessDocumented
The situation
A family business planning succession in Vancouver, British Columbia could not answer basic questions about its own numbers, because pricing set by feel, with no visibility into margin by service line sat between the bank statements and the ledger.
What we did
We modelled the covenant ratios monthly and restructured the debt before the next test date rather than after it, then documented the process so the work does not depend on any one person remembering how it was done.
The result
Records rebuilt and reconciled, $16,000 recovered in input tax credits that the old file could not support, and a documented monthly process now in place.
Case Study 3 · Cash and remittance control
Instalments Rebased, $72,000 Of Cash Returned To The Business — Subscription Business Tracking Churn, Winnipeg
Client: A subscription business tracking churn · Where: Winnipeg, Manitoba · Engagement: 11 weeks, fixed fee
Cash returned$72,000
Instalment basisCurrent year
ReviewedQuarterly
The situation
A subscription business tracking churn in Winnipeg, Manitoba was paying instalments calculated on a prior year that no longer reflected the business. A covenant breach discovered only when the bank called was tying up $72,000 of cash.
What we did
We rebased the instalments on the current-year estimate rather than the prior-year default, and rebuilt the reporting around gross margin by service line, which showed two of five offerings were losing money at the current price.
The result
$72,000 of cash stayed in the business, the penalty cycle ended, and the instalment position is reviewed each quarter against actual results.
Case Study 4 · Planning that cut the bill
$67,000 Saved By Correcting What Prior Filings Had Missed — Mid-Sized Professional Services Firm, Saskatoon
Client: A mid-sized professional services firm · Where: Saskatoon, Saskatchewan · Engagement: 9 weeks, fixed fee
Saving identified$67,000
RecurringYes
Positions documentedAll
The situation
A mid-sized professional services firm in Saskatoon, Saskatchewan asked for a second opinion on department profitability analysis after three years of rising tax. The review found an owner making hiring decisions on last quarter’s bank balance.
What we did
We built the comparison first — current structure against two alternatives — and then produced a board-ready monthly package — cash, margin, pipeline and covenant headroom — that replaced a spreadsheet nobody trusted.
The result
First-year saving of $67,000, with the same benefit recurring. Every position taken is documented and supported in the file.
Case Study 5 · Scaling without breaking
Growth Handled Without A Missed Filing, $140,000 Freed — Distributor Entering a Second, Regina
Client: A distributor entering a second province · Where: Regina, Saskatchewan · Engagement: 10 weeks, fixed fee
Cash freed$140,000
Compliance failuresNone
ReportingMonthly
The situation
A distributor entering a second province in Regina, Saskatchewan was opening in a second province — different filing obligations, a different payroll regime, and a growth plan with no forecast behind it and no financing lined up already in the file.
What we did
We built a rolling thirteen-week cash-flow model, tightened collections, and renegotiated supplier terms so the growth stopped consuming the bank balance 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. $140,000 of cash was released, and the monthly reporting now flags a problem while it is still small.
Case Study 6 · CRA review defended
$88,000 Proposed Adjustment Withdrawn In Full — Manufacturer Planning a Plant, Windsor
Client: A manufacturer planning a plant expansion · Where: Windsor, Ontario · Engagement: 8 weeks, fixed fee
Adjustment withdrawn$88,000
File closed in8 weeks
Penalties assessedNone
The situation
A manufacturer planning a plant expansion in Windsor, Ontario received a proposal letter opening a review of department profitability analysis. The CRA had identified revenue up 40% year over year and a bank balance that kept falling and proposed an adjustment of $88,000, with 30 days to respond.
What we did
We treated the response as an evidence exercise rather than an argument. We modelled the covenant ratios monthly and restructured the debt before the next test date rather than after it, then indexed every supporting document against the specific line the auditor had questioned.
The result
The proposed adjustment was withdrawn in full — all $88,000 of it. The file closed in 8 weeks with no change to the assessed amounts and no penalty.
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.
