6 worked Intercompany Reconciliation 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 intercompany reconciliation work, not a specific client's file.
Case Study 1 · Scaling without breaking
Second-Province Expansion Handled, $37,500 Of Cash Released — Dental Hygiene Clinic, Hamilton
The situation — A dental hygiene clinic, Hamilton, Ontario
Revenue at a dental hygiene clinic in Hamilton, Ontario was up sharply and cash was tighter than ever. Underneath it sat sales recorded from bank deposits, so processor fees, chargebacks and refunds appeared nowhere in the ledger.
What we did for A dental hygiene clinic, Hamilton, Ontario
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. Every new obligation was set up before it was triggered, not after. That covered registration, remittance frequency and provincial filing.
The result — A dental hygiene clinic, Hamilton, Ontario
$37,500 of cash was released from the working capital cycle. 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 — Home-Renovation Contractor, London
The situation — A home-renovation contractor, London, Ontario
A home-renovation contractor in London, Ontario had outgrown the structure it started with. Eighteen months of unreconciled transactions and a shoebox of receipts was the immediate problem. The longer-term one was that the structure blocked the next step.
What we did for A home-renovation contractor, London, Ontario
We mapped the current structure and modelled the target. Then we separated the owner’s personal spending out of the corporate accounts and cleared the resulting shareholder loan properly. The tax-deferred elections were filed on time and the supporting valuations documented.
The result — A home-renovation contractor, London, Ontario
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 — Wedding Photography Studio, Kitchener
Client: A wedding photography studio · Where: Kitchener, Ontario · Engagement: 9 weeks, fixed fee
Saving identified$34,500
RecurringYes
Positions documentedAll
The situation — A wedding photography studio, Kitchener, Ontario
A wedding photography studio in Kitchener, Ontario asked for a second opinion on intercompany reconciliation. That followed three years of rising tax. The review found three years of returns filed off numbers nobody could trace back to a bank statement.
What we did for A wedding photography studio, Kitchener, Ontario
We built the comparison first: current structure against two alternatives. Then we cleared the payroll and sales tax clearing accounts every month and tied each remittance to the liability it settled.
The result — A wedding photography studio, Kitchener, Ontario
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 — Residential Cleaning Franchise, Moncton
Client: A residential cleaning franchise · Where: Moncton, New Brunswick · Engagement: 3 weeks, fixed fee
Balance reduced by$84,000
Backlog cleared5 years
CollectionsHalted
The situation — A residential cleaning franchise, Moncton, New Brunswick
By the time a residential cleaning franchise in Moncton, New Brunswick called, 5 years were outstanding. The CRA had assessed on estimates. Underneath it sat meals and entertainment coded at full cost with the input tax credit claimed on the whole amount.
What we did for A residential cleaning franchise, Moncton, New Brunswick
We reconstructed the records year by year. We rebuilt sales from the processor settlement reports so gross sales, fees and refunds each landed in an account of their own. Each filing replaced an arbitrary assessment with a real one.
The result — A residential cleaning franchise, Moncton, New Brunswick
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.
Case Study 5 · Cash and remittance control
Remittance Schedule Corrected, $112,000 Refunded — Mobile Pet-Grooming Company, Lethbridge
Client: A mobile pet-grooming company · Where: Lethbridge, Alberta · Engagement: 9 weeks, fixed fee
Overpayment refunded$112,000
Late remittances sinceZero
ScheduleAutomated
The situation — A mobile pet-grooming company, Lethbridge, Alberta
Remittances at a mobile pet-grooming company 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 A mobile pet-grooming company, 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 — A mobile pet-grooming company, Lethbridge, Alberta
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 — Owner-Operated Trades Business, Mississauga
Client: An owner-operated trades business · Where: Mississauga, Ontario · Engagement: 11 weeks, fixed fee
Tax deferred$530,000
TransferCompleted
RecordsReview-ready
The situation — An owner-operated trades business, Mississauga, Ontario
A generational transfer at an owner-operated trades business 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 for An owner-operated trades business, Mississauga, Ontario
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. We sequenced the steps so each one was complete and documented before the next depended on it.
The result — An owner-operated trades business, Mississauga, Ontario
$530,000 of tax was deferred through the transfer, and the successor generation took over a corporation whose records stood up to review.
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.
