6 Intercompany Reconciliation 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 intercompany reconciliation work, not a general example.
Case Study 1 · Scaling without breaking
Second-Province Expansion Handled, $37,500 Of Cash Released — Machine-Shop Owner-Operator, Hamilton
Revenue at a machine-shop owner-operator in Hamilton, Ontario was up sharply and cash was tighter than ever. Underneath it sat 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. Every new obligation — registration, remittance frequency, provincial filing — was set up before it was triggered, not after.
The result
$37,500 of cash was released from the working capital cycle, and the expansion completed with every registration and filing obligation covered from day one.
Case Study 2 · Structure rebuilt
Reorganisation Completed Tax-Deferred, $14,000 Saved Each Year — Independent Pharmacy, London
An independent pharmacy in London, Ontario had outgrown the structure it started with. Two sets of numbers — one in the accounting file, one the owner actually ran the business on was the immediate problem; the longer-term one was that the structure blocked the next step.
What we did
We mapped the current structure, modelled the target, and reconciled the inter-company accounts, papered the arrangement with a written agreement, and aligned both corporations’ year-ends — with the tax-deferred elections filed on time and the supporting valuations documented.
The result
The reorganisation completed without triggering tax, and the new structure saves approximately $14,000 a year while removing the exposure the old one carried.
Case Study 3 · Planning that cut the bill
$34,500 Saved By Correcting What Prior Filings Had Missed — 14-Person Design Agency, Kitchener
A 14-person design agency in Kitchener, Ontario asked for a second opinion on intercompany reconciliation after three years of rising tax. The review found inter-company balances between two related corporations that had never been reconciled.
What we did
We built the comparison first — current structure against two alternatives — and then 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
First-year saving of $34,500, with the same benefit recurring. Every position taken is documented and supported in the file.
Case Study 4 · Backlog brought current
Collections Halted And $84,000 Cut From A 5-Year Backlog — Specialty Food Importer, Moncton
Client: A specialty food importer · Where: Moncton, New Brunswick · Engagement: 3 weeks, fixed fee
Balance reduced by$84,000
Backlog cleared5 years
CollectionsHalted
The situation
By the time a specialty food importer in Moncton, New Brunswick called, 5 years were outstanding and the CRA had assessed on estimates. Underneath it sat a bank that refused to renew an operating line without compliant statements.
What we did
We reconstructed the records year by year and 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. Each filing replaced an arbitrary assessment with a real one.
The result
The account is current. Filing on real numbers rather than CRA estimates reduced the balance by $84,000, and a relief application addressed part of the accumulated interest.
Client: A family-owned wholesale distributor · Where: Lethbridge, Alberta · Engagement: 9 weeks, fixed fee
Overpayment refunded$112,000
Late remittances sinceZero
ScheduleAutomated
The situation
Remittances at a family-owned wholesale distributor in Lethbridge, Alberta were consistently late by a few days, which was enough to trigger penalties every quarter. Behind it sat a shareholder loan account that had drifted for three years with no supporting entries.
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 moved the remittance dates into a scheduled process rather than a monthly decision.
The result
Penalties stopped from the following remittance onwards, and $112,000 of overpaid instalments was refunded.
Case Study 6 · Sale and succession
Intergenerational Transfer Completed With $530,000 Deferred — Regional Courier Operator, Mississauga
A generational transfer at a regional courier operator in Mississauga, Ontario had been discussed for years without a plan. A shareholder loan balance that would have been picked up as income on closing meant the transfer as contemplated would have been fully taxable.
What we did
We reconciled the inter-company accounts, papered the arrangement with a written agreement, and aligned both corporations’ year-ends, sequencing the steps so each one was complete and documented before the next depended on it.
The result
$530,000 of tax was deferred through the transfer, and the successor generation took over a corporation whose records stood up to review.
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.
