6 worked ERP and Accounting System Selection 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 erp and accounting system selection work, not a specific client's file.
Case Study 1 · Sale and succession
$665,000 Sheltered By The Lifetime Capital Gains Exemption — Corporation Facing Covenant Test, Toronto
Client: A corporation approaching a covenant test date · Where: Toronto, Ontario · Engagement: 8 weeks, fixed fee
Gain sheltered$665,000
ClosingOn schedule
Share qualificationMet
The situation — A corporation approaching a covenant test date, Toronto, Ontario
A corporation approaching a covenant test date in Toronto, Ontario had an offer on the table and 22 months to close. The shares did not qualify for the capital gains exemption. A shareholder loan balance that would have been picked up as income on closing was part of the reason.
What we did for A corporation approaching a covenant test date, Toronto, Ontario
We purified the corporation so the shares met the qualifying tests. We added the balance sheet and a cash view to the monthly package, so the owner saw working capital move rather than only profit. All of it was done well ahead of the closing date.
The result — A corporation approaching a covenant test date, Toronto, Ontario
The sale closed on schedule with $665,000 sheltered by the lifetime capital gains exemption across the shareholders.
Case Study 2 · Backlog brought current
Collections Halted And $56,000 Cut From A 5-Year Backlog — Practice Adding Partners, Lethbridge
Client: A professional practice adding partners · Where: Lethbridge, Alberta · Engagement: 7 weeks, fixed fee
Balance reduced by$56,000
Backlog cleared5 years
CollectionsHalted
The situation — A professional practice adding partners, Lethbridge, Alberta
By the time a professional practice adding partners in Lethbridge, Alberta called, 5 years were outstanding. The CRA had assessed on estimates. Underneath it sat a covenant breach discovered only when the bank called.
What we did for A professional practice adding partners, Lethbridge, Alberta
We reconstructed the records year by year. We separated customer prepayments from earned revenue in the reporting, so the cash position and the tax position were visible at the same time. Each filing replaced an arbitrary assessment with a real one.
The result — A professional practice adding partners, Lethbridge, Alberta
The account is current. Filing on real numbers rather than CRA estimates reduced the balance by $56,000, and a relief application addressed part of the accumulated interest.
Case Study 3 · Structure rebuilt
Corporate Structure Rebuilt For $15,500 Of Annual Savings — Pre-Raise Technology Company, Guelph
Client: A technology company preparing to raise · Where: Guelph, Ontario · Engagement: 9 weeks, fixed fee
Saving per year$15,500
DocumentationComplete
Transfer basisRollover
The situation — A technology company preparing to raise, Guelph, Ontario
The structure at a technology company preparing to raise in Guelph, Ontario dated from years earlier. It had been set up for a business that no longer existed. A monthly report that stopped at the income statement, with no balance sheet and no cash view had become expensive.
What we did for A technology company preparing to raise, Guelph, Ontario
We modelled the covenant ratios monthly and restructured the debt before the next test date rather than after it. The reorganisation used the rollover provisions rather than a taxable transfer, so no tax fell due on the restructuring itself.
The result — A technology company preparing to raise, Guelph, Ontario
$15,500 of annual saving, achieved on a tax-deferred basis. The minute book, elections and valuations are all in the file.
Case Study 4 · Objection and relief
Desk-Review Assessment Of $30,500 Vacated — First Finance Hire, Kelowna
Client: A company hiring its first finance staff · Where: Kelowna, British Columbia · Engagement: 6 weeks, fixed fee
Assessment vacated$30,500
Supporting recordsNow on file
AccountCleared
The situation — A company hiring its first finance staff, Kelowna, British Columbia
A company hiring its first finance staff in Kelowna, British Columbia was carrying $30,500 of penalties and interest. The charges arose from an owner making hiring decisions on last quarter’s bank balance. Much of that amount accumulated during a period the CRA itself had delayed.
What we did for A company hiring its first finance staff, Kelowna, British Columbia
We built a rolling thirteen-week cash-flow model, tightened collections, and renegotiated supplier terms so the growth stopped consuming the bank balance. We framed the relief application on the specific grounds the CRA guidelines recognise rather than on general hardship.
The result — A company hiring its first finance staff, Kelowna, British Columbia
The assessment was vacated. $30,500 came off the account, and the documentation now on file makes the same position straightforward to defend next time.
Client: A construction company bidding larger contracts · Where: Barrie, Ontario · Engagement: 10 weeks, fixed fee
Penalty cancelled$55,000
Relief applicationGranted
ReturnAccepted as filed
The situation — A construction company bidding larger contracts, Barrie, Ontario
A construction company bidding larger contracts in Barrie, Ontario had already missed one deadline and was about to miss a second. Behind it sat revenue up 40% year over year and a bank balance that kept falling. A penalty of $55,000 was accruing.
What we did for A construction company bidding larger contracts, Barrie, Ontario
We split the work into what had to happen before the deadline and what could follow it. Then we set a quarterly tax provision, so the instalments and the year-end balance were funded before they came due.
The result — A construction company bidding larger contracts, Barrie, Ontario
The outstanding return was accepted as filed, and the taxpayer relief application cancelled $55,000 of the penalty already assessed on the earlier year.
Case Study 6 · Records and systems rebuilt
Month-End Close Cut From 6 Weeks To 9 Days — Succession-Planning Family Business, Moncton
Client: A family business planning succession · Where: Moncton, New Brunswick · Engagement: 6 weeks, fixed fee
Close time before6 weeks
Close time after9 days
Year-endReview, not rebuild
The situation — A family business planning succession, Moncton, New Brunswick
The accounting file at a family business planning succession in Moncton, New Brunswick had a weak foundation. It was built on a growth plan with no forecast behind it and no financing lined up. The year-end had taken 6 weeks each of the last three years.
What we did for A family business planning succession, Moncton, New Brunswick
We traced each borrowing to what it actually funded and kept the interest deduction on the portion used to earn business income. We also moved the reconciliations into the monthly cycle, so the year-end stopped being a rebuild.
The result — A family business planning succession, Moncton, New Brunswick
The file reconciles. Month-end closes in 9 days instead of 6 weeks, and the year-end is a review rather than a reconstruction.
Reviewed by Udit Gupta, Founder and Tax Accountant for the 2025 tax year. 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.
