6 worked Historical Bookkeeping 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 historical bookkeeping work, not a specific client's file.
Case Study 1 · Missed incentive claimed
$52,000 In Credits Claimed That Prior Filings Had Missed — Home-Renovation Contractor, Kitchener
The situation — A home-renovation contractor, Kitchener, Ontario
A home-renovation contractor in Kitchener, Ontario had been filing for 5 years. In that time, the incentives its activity qualified for were never claimed. Behind that sat input tax credits claimed on receipts that had already been claimed once.
What we did for A home-renovation contractor, Kitchener, Ontario
We tested each activity against the eligibility criteria rather than the description on the invoice. Then we recoded the meals and entertainment accounts to the statutory limit and reversed the over-claimed input tax credits before the next return went in.
The result — A home-renovation contractor, Kitchener, Ontario
$52,000 in credits claimed, with the open prior years adjusted as well. The claim passed review without adjustment.
Case Study 2 · CRA review defended
Audit Defence Closed In 3 Weeks, $38,500 Cleared — Two-Location Cafe, London
The situation — A two-location cafe, London, Ontario
A two-location cafe in London, Ontario was selected for review. Meals and entertainment coded at full cost with the input tax credit claimed on the whole amount had shown up in the CRA's automated matching. The proposed adjustment on historical bookkeeping came to $38,500.
What we did for A two-location cafe, London, Ontario
We rebuilt the ledger from bank and card statements and matched every receipt to a transaction. We removed duplicated input tax credits before they became a review. Every figure in the response traced to a source record the auditor could verify without asking a second question.
The result — A two-location cafe, London, Ontario
The review closed with no change. $38,500 of proposed tax came off the table, and the documentation now in place makes the next review a short one.
Case Study 3 · Scaling without breaking
Growth Handled Without A Missed Filing, $71,000 Freed — Residential Cleaning Franchise, Hamilton
The situation — A residential cleaning franchise, Hamilton, Ontario
A residential cleaning franchise in Hamilton, Ontario was opening in a second province. That meant different filing obligations and a different payroll regime. A payroll clearing account that had never been brought to zero, carrying a balance nobody could explain already sat in the file.
What we did for A residential cleaning franchise, Hamilton, Ontario
We reconciled receivables and payables to source documents and wrote off the balances that were genuinely uncollectible, with support. We then put monthly reporting in place. That let the owner see the cash effect of growth while there was still time to act on it.
The result — A residential cleaning franchise, Hamilton, Ontario
Growth was absorbed without a compliance failure. $71,000 of cash was released, and the monthly reporting now flags a problem while it is still small.
Case Study 4 · Planning that cut the bill
$31,000 Cut From The Annual Tax Bill — Seasonal Food-Truck Operator, Mississauga
Client: A food-truck operator running two seasonal units · Where: Mississauga, Ontario · Engagement: 11 weeks, fixed fee
First-year saving$31,000
RepeatsAnnually
Filing positionUnchanged in risk
The situation — A food-truck operator running two seasonal units, Mississauga, Ontario
A food-truck operator running two seasonal units in Mississauga, Ontario was compliant but paying more than it needed to. The prior year had been filed correctly. It still left eighteen months of unreconciled transactions and a shoebox of receipts on the table.
What we did for A food-truck operator running two seasonal units, Mississauga, Ontario
We modelled the current position against the alternatives before changing anything. Then we converted the foreign-currency purchases at transaction-date rates and recorded the exchange difference at settlement instead of burying it in cost of sales.
The result — A food-truck operator running two seasonal units, Mississauga, Ontario
The change saved $31,000 in the first year and repeats annually. Nothing about the filings became more aggressive. The position is simply the one the rules already allowed.
Client: An owner-operated trades business · Where: Lethbridge, Alberta · Engagement: 9 weeks, fixed fee
Overpayment refunded$144,000
Late remittances sinceZero
ScheduleAutomated
The situation — An owner-operated trades business, Lethbridge, Alberta
Remittances at an owner-operated trades business in Lethbridge, Alberta were consistently late by a few days. That was enough to trigger penalties every quarter. Behind it sat input tax credits claimed on receipts that had already been claimed once.
What we did for An owner-operated trades business, Lethbridge, Alberta
We set up a documented chart of accounts, a receipt-capture workflow and a monthly reconciliation that closes within ten days of month-end. Then we moved the remittance dates into a scheduled process rather than a monthly decision.
The result — An owner-operated trades business, Lethbridge, Alberta
Penalties stopped from the following remittance onwards, and $144,000 of overpaid instalments was refunded.
Case Study 6 · Records and systems rebuilt
Books Rebuilt From Source, $16,000 In Unclaimed Input Tax Found — Equipment Rental Yard, Moncton
Client: An equipment rental yard · Where: Moncton, New Brunswick · Engagement: 10 weeks, fixed fee
Unclaimed tax found$16,000
Records rebuilt28 months
ProcessDocumented
The situation — An equipment rental yard, Moncton, New Brunswick
An equipment rental yard in Moncton, New Brunswick could not answer basic questions about its own numbers. A bookkeeping file where owner draws, payroll and supplier payments all landed in the same account sat between the bank statements and the ledger.
What we did for An equipment rental yard, Moncton, New Brunswick
We rebuilt sales from the processor settlement reports so gross sales, fees and refunds each landed in an account of their own. We then documented the process so the work does not depend on any one person remembering how it was done.
The result — An equipment rental yard, Moncton, New Brunswick
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.
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.
