6 Inventory and COGS Analysis 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 inventory and cogs analysis work, not a general example.
Case Study 1 · Backlog brought current
7 Years Filed, $36,500 Removed From The Assessed Balance — Distributor Entering a Second, Edmonton
Client: A distributor entering a second province · Where: Edmonton, Alberta · Engagement: 8 weeks, fixed fee
Years filed7
Assessed balance removed$36,500
CollectionsStopped
The situation
A distributor entering a second province in Edmonton, Alberta had not filed for 7 years. The CRA had issued arbitrary assessments, and the business was carrying a covenant breach discovered only when the bank called on top of a growing interest balance.
What we did
We started with the oldest year and worked forward so each year's closing balances fed the next. We modelled the covenant ratios monthly and restructured the debt before the next test date rather than after it, filing the years in sequence rather than all at once.
The result
Every year is now filed and assessed on actual figures. The notional assessments were vacated and $36,500 of the estimated balance came off, with a payment arrangement covering the rest.
Case Study 2 · Scaling without breaking
Growth Handled Without A Missed Filing, $49,000 Freed — Technology Company Preparing to, Barrie
Client: A technology company preparing to raise · Where: Barrie, Ontario · Engagement: 10 weeks, fixed fee
Cash freed$49,000
Compliance failuresNone
ReportingMonthly
The situation
A technology company preparing to raise in Barrie, Ontario was opening in a second province — different filing obligations, a different payroll regime, and revenue up 40% year over year and a bank balance that kept falling already in the file.
What we did
We built a rolling thirteen-week cash-flow model, tightened collections, and renegotiated supplier terms so the growth stopped consuming the bank balance and put monthly reporting in place so the owner could see the cash effect of growth while there was still time to act on it.
The result
Growth was absorbed without a compliance failure. $49,000 of cash was released, and the monthly reporting now flags a problem while it is still small.
Case Study 3 · Deadline rescue
$136,000 Late-Filing Penalty Cancelled On Relief Application — Mid-Sized Professional Services Firm, Burnaby
Client: A mid-sized professional services firm · Where: Burnaby, British Columbia · Engagement: 3 weeks, fixed fee
Penalty cancelled$136,000
Relief applicationGranted
ReturnAccepted as filed
The situation
A mid-sized professional services firm in Burnaby, British Columbia had already missed one deadline and was about to miss a second. Behind it sat an owner making hiring decisions on last quarter’s bank balance, and a penalty of $136,000 was accruing.
What we did
We split the work into what had to happen before the deadline and what could follow it, then produced a board-ready monthly package — cash, margin, pipeline and covenant headroom — that replaced a spreadsheet nobody trusted.
The result
The outstanding return was accepted as filed, and the taxpayer relief application cancelled $136,000 of the penalty already assessed on the earlier year.
Case Study 4 · Sale and succession
Share Sale Restructured, $500,000 Less Tax On Closing — Fast-Growing E-Commerce Brand, Ottawa
A fast-growing e-commerce brand in Ottawa, Ontario was preparing to sell. Due diligence surfaced a single shareholder holding every share, with no room to multiply the exemption, which would have reduced the price or killed the deal outright.
What we did
We cleaned up the historical file, rebuilt the reporting around gross margin by service line, which showed two of five offerings were losing money at the current price, and prepared the due-diligence package the buyer's advisers actually asked for.
The result
The deal closed at the agreed price. $500,000 of tax was saved against the structure originally proposed, with no post-closing adjustment.
Case Study 5 · Planning that cut the bill
Remuneration Review Saved $45,000 Across Corporate And Personal Returns — Construction Company Bidding Larger, Kelowna
Client: A construction company bidding larger contracts · Where: Kelowna, British Columbia · Engagement: 3 weeks, fixed fee
Combined saving$45,000
ScopeCorporate + personal
Future yearsNo rework needed
The situation
Nothing was wrong at a construction company bidding larger contracts in Kelowna, British Columbia — the filings were on time and accurate. What they were not was planned. A growth plan with no forecast behind it and no financing lined up had never been reviewed.
What we did
We modelled the covenant ratios monthly and restructured the debt before the next test date rather than after it, and ran the numbers across both the corporate and personal returns so the saving was real rather than deferred into someone else's hands.
The result
$45,000 came off the combined corporate and personal tax bill, and the structure holds for future years without further work.
Case Study 6 · Objection and relief
Notice Of Objection Allowed In Full, $105,000 Reversed — Clinic Group Acquiring a, Brampton
Client: A clinic group acquiring a competitor · Where: Brampton, Ontario · Engagement: 11 weeks, fixed fee
Amount reversed$105,000
ObjectionAllowed in full
Account balanceNil
The situation
A clinic group acquiring a competitor in Brampton, Ontario had been reassessed for $105,000 and had 11 days left on the objection deadline. The reassessment rested on a covenant breach discovered only when the bank called.
What we did
We filed the objection inside the deadline with a complete submission rather than a placeholder, and built a rolling thirteen-week cash-flow model, tightened collections, and renegotiated supplier terms so the growth stopped consuming the bank balance.
The result
The appeals officer allowed the objection in full. $105,000 was reversed and the account returned to a nil balance.
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.
