6 Fixed Asset Register and Depreciation 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 fixed asset register and depreciation accounting work, not a general example.
Case Study 1 · Scaling without breaking
Scaled To 60 Staff With $54,000 Of Working Capital Freed — Family-Owned Wholesale Distributor, Kelowna
Client: A family-owned wholesale distributor · Where: Kelowna, British Columbia · Engagement: 4 weeks, fixed fee
Headcount reached60
Working capital freed$54,000
Missed deadlinesZero
The situation
A family-owned wholesale distributor in Kelowna, British Columbia was growing fast — headcount to 60 in eighteen months — and the back office had not kept up. Two sets of numbers — one in the accounting file, one the owner actually ran the business on was the first thing to break.
What we did
We reconciled the inter-company accounts, papered the arrangement with a written agreement, and aligned both corporations’ year-ends, and built the compliance calendar for the size the business was becoming rather than the size it had been.
The result
The business reached 60 staff with no missed remittance and no late filing. $54,000 of working capital was freed in the process.
Case Study 2 · Sale and succession
$555,000 Sheltered By The Lifetime Capital Gains Exemption — Specialty Food Importer, Halifax
Client: A specialty food importer · Where: Halifax, Nova Scotia · Engagement: 4 weeks, fixed fee
Gain sheltered$555,000
ClosingOn schedule
Share qualificationMet
The situation
A specialty food importer in Halifax, Nova Scotia had an offer on the table and 22 months to close. The shares did not qualify for the capital gains exemption, and retained cash well above what the business needed to operate 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 $555,000 sheltered by the lifetime capital gains exemption across the shareholders.
Case Study 3 · Objection and relief
$112,000 Of Penalties And Interest Cancelled On Relief — Machine-Shop Owner-Operator, Guelph
An assessment of $112,000 landed at a machine-shop owner-operator in Guelph, Ontario following a desk review. The auditor had not seen the records behind year-end statements that arrived four months late and never tied to the bank.
What we did
We separated personal and corporate spending, cleared the shareholder loan through a documented salary and dividend mix, and restated the comparative year, then set out the legislative basis for the position alongside the documents supporting it.
The result
$112,000 of penalties and interest was cancelled under the taxpayer relief provisions, and the underlying assessment was adjusted to match the filed position.
Case Study 4 · Cash and remittance control
Instalments Rebased, $20,500 Of Cash Returned To The Business — Growing Landscaping Company, Saskatoon
Client: A growing landscaping company · Where: Saskatoon, Saskatchewan · Engagement: 11 weeks, fixed fee
Cash returned$20,500
Instalment basisCurrent year
ReviewedQuarterly
The situation
A growing landscaping company in Saskatoon, Saskatchewan was paying instalments calculated on a prior year that no longer reflected the business. Inter-company balances between two related corporations that had never been reconciled was tying up $20,500 of cash.
What we did
We rebased the instalments on the current-year estimate rather than the prior-year default, and 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.
The result
$20,500 of cash stayed in the business, the penalty cycle ended, and the instalment position is reviewed each quarter against actual results.
Case Study 5 · CRA review defended
$130,000 Reassessment Reduced To Nil On Review — Boutique Fitness Studio Group, Lethbridge
Client: A boutique fitness studio group · Where: Lethbridge, Alberta · Engagement: 3 weeks, fixed fee
Reassessment reduced toNil
Tax protected$130,000
Prior filingsUndisturbed
The situation
A review notice arrived at a boutique fitness studio group in Lethbridge, Alberta covering fixed asset register and depreciation accounting for two tax years. The auditor's working position was an adjustment of $130,000, driven by a shareholder loan account that had drifted for three years with no supporting entries.
What we did
Rather than negotiate, we rebuilt the record. We reconciled the inter-company accounts, papered the arrangement with a written agreement, and aligned both corporations’ year-ends and submitted a point-by-point response that answered each proposed adjustment with the document behind it.
The result
The auditor accepted the documented position and closed the review without adjustment, protecting $130,000 and leaving the prior filings undisturbed.
Case Study 6 · Backlog brought current
$109,000 Of Arbitrary Assessments Vacated After 7 Years — Two-Partner Engineering Firm, London
7 years of unfiled returns had turned into notional assessments at a two-partner engineering firm in London, Ontario, with two sets of numbers — one in the accounting file, one the owner actually ran the business on underneath. Collections had already started.
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, then filed every outstanding year in chronological order so the CRA could vacate the notional assessments cleanly.
The result
All 7 years were accepted as filed. $109,000 of arbitrarily assessed tax was vacated, collections action stopped, and the account is current for the first time in 7 years.
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.
