6 Due-Diligence Accounting Support 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 due-diligence accounting support work, not a general example.
Case Study 1 · Sale and succession
$220,000 Sheltered By The Lifetime Capital Gains Exemption — Subscription Business Tracking Churn, London
Client: A subscription business tracking churn · Where: London, Ontario · Engagement: 10 weeks, fixed fee
Gain sheltered$220,000
ClosingOn schedule
Share qualificationMet
The situation
A subscription business tracking churn in London, Ontario had an offer on the table and 17 months to close. The shares did not qualify for the capital gains exemption, and a single shareholder holding every share, with no room to multiply the exemption was part of the reason.
What we did
We purified the corporation so the shares met the qualifying tests, then rebuilt the reporting around gross margin by service line, which showed two of five offerings were losing money at the current price well ahead of the closing date.
The result
The sale closed on schedule with $220,000 sheltered by the lifetime capital gains exemption across the shareholders.
Case Study 2 · Deadline rescue
$112,000 Late-Filing Penalty Cancelled On Relief Application — Construction Company Bidding Larger, Lethbridge
Client: A construction company bidding larger contracts · Where: Lethbridge, Alberta · Engagement: 6 weeks, fixed fee
Penalty cancelled$112,000
Relief applicationGranted
ReturnAccepted as filed
The situation
A construction company bidding larger contracts in Lethbridge, Alberta had already missed one deadline and was about to miss a second. Behind it sat an owner making hiring decisions on last quarter’s bank balance, and a penalty of $112,000 was accruing.
What we did
We split the work into what had to happen before the deadline and what could follow it, then built a rolling thirteen-week cash-flow model, tightened collections, and renegotiated supplier terms so the growth stopped consuming the bank balance.
The result
The outstanding return was accepted as filed, and the taxpayer relief application cancelled $112,000 of the penalty already assessed on the earlier year.
Case Study 3 · Scaling without breaking
Scaled To 22 Staff With $95,000 Of Working Capital Freed — Professional Practice Adding Partners, Burnaby
Client: A professional practice adding partners · Where: Burnaby, British Columbia · Engagement: 4 weeks, fixed fee
Headcount reached22
Working capital freed$95,000
Missed deadlinesZero
The situation
A professional practice adding partners in Burnaby, British Columbia was growing fast — headcount to 22 in eighteen months — and the back office had not kept up. Revenue up 40% year over year and a bank balance that kept falling was the first thing to break.
What we did
We produced a board-ready monthly package — cash, margin, pipeline and covenant headroom — that replaced a spreadsheet nobody trusted, and built the compliance calendar for the size the business was becoming rather than the size it had been.
The result
The business reached 22 staff with no missed remittance and no late filing. $95,000 of working capital was freed in the process.
Case Study 4 · Backlog brought current
$35,000 Of Arbitrary Assessments Vacated After 4 Years — Fast-Growing E-Commerce Brand, Toronto
4 years of unfiled returns had turned into notional assessments at a fast-growing e-commerce brand in Toronto, Ontario, with a covenant breach discovered only when the bank called underneath. Collections had already started.
What we did
We modelled the covenant ratios monthly and restructured the debt before the next test date rather than after it, then filed every outstanding year in chronological order so the CRA could vacate the notional assessments cleanly.
The result
All 4 years were accepted as filed. $35,000 of arbitrarily assessed tax was vacated, collections action stopped, and the account is current for the first time in 4 years.
Case Study 5 · Records and systems rebuilt
Books Rebuilt From Source, $19,000 In Unclaimed Input Tax Found — Manufacturer Planning a Plant, Brampton
Client: A manufacturer planning a plant expansion · Where: Brampton, Ontario · Engagement: 6 weeks, fixed fee
Unclaimed tax found$19,000
Records rebuilt9 months
ProcessDocumented
The situation
A manufacturer planning a plant expansion in Brampton, Ontario could not answer basic questions about its own numbers, because a growth plan with no forecast behind it and no financing lined up sat between the bank statements and the ledger.
What we did
We rebuilt the reporting around gross margin by service line, which showed two of five offerings were losing money at the current price, 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, $19,000 recovered in input tax credits that the old file could not support, and a documented monthly process now in place.
Case Study 6 · CRA review defended
$12,000 Proposed Adjustment Withdrawn In Full — Mid-Sized Professional Services Firm, Calgary
Client: A mid-sized professional services firm · Where: Calgary, Alberta · Engagement: 7 weeks, fixed fee
Adjustment withdrawn$12,000
File closed in7 weeks
Penalties assessedNone
The situation
A mid-sized professional services firm in Calgary, Alberta received a proposal letter opening a review of due-diligence accounting support. The CRA had identified pricing set by feel, with no visibility into margin by service line and proposed an adjustment of $12,000, with 30 days to respond.
What we did
We treated the response as an evidence exercise rather than an argument. We built a rolling thirteen-week cash-flow model, tightened collections, and renegotiated supplier terms so the growth stopped consuming the bank balance, then indexed every supporting document against the specific line the auditor had questioned.
The result
The proposed adjustment was withdrawn in full — all $12,000 of it. The file closed in 7 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.
