6 worked Inventory and COGS Analysis 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 inventory and cogs analysis work, not a specific client's file.
Case Study 1 · Backlog brought current
7 Years Filed, $36,500 Removed From The Assessed Balance — Owner Without a Forecast, Edmonton
Client: An owner running the business without a cash-flow forecast · Where: Edmonton, Alberta · Engagement: 8 weeks, fixed fee
Years filed7
Assessed balance removed$36,500
CollectionsStopped
The situation — An owner running the business without a cash-flow forecast, Edmonton, Alberta
An owner running the business without a cash-flow forecast 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 for An owner running the business without a cash-flow forecast, Edmonton, Alberta
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 — An owner running the business without a cash-flow forecast, Edmonton, Alberta
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 — First Finance Hire, Barrie
Client: A company hiring its first finance staff · Where: Barrie, Ontario · Engagement: 10 weeks, fixed fee
Cash freed$49,000
Compliance failuresNone
ReportingMonthly
The situation — A company hiring its first finance staff, Barrie, Ontario
A company hiring its first finance staff in Barrie, Ontario was opening in a second province — different filing obligations, a different payroll regime, and a growth plan with no forecast behind it and no financing lined up already in the file.
What we did for A company hiring its first finance staff, Barrie, Ontario
We added the balance sheet and a cash view to the monthly package, so the owner saw working capital move rather than only profit 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 — A company hiring its first finance staff, Barrie, Ontario
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.
Client: A fast-growing e-commerce brand · Where: Burnaby, British Columbia · Engagement: 3 weeks, fixed fee
Penalty cancelled$136,000
Relief applicationGranted
ReturnAccepted as filed
The situation — A fast-growing e-commerce brand, Burnaby, British Columbia
A fast-growing e-commerce brand in Burnaby, British Columbia had already missed one deadline and was about to miss a second. Behind it sat a borrowing drawn for an unrelated personal purchase with the interest claimed against the business, and a penalty of $136,000 was accruing.
What we did for A fast-growing e-commerce brand, Burnaby, British Columbia
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 — A fast-growing e-commerce brand, Burnaby, British Columbia
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 — Subscription Business, Ottawa
Client: A subscription business tracking churn · Where: Ottawa, Ontario · Engagement: 9 weeks, fixed fee
Tax saved on closing$500,000
PriceAs agreed
Post-closing adjustmentsNone
The situation — A subscription business tracking churn, Ottawa, Ontario
A subscription business tracking churn 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 for A subscription business tracking churn, Ottawa, Ontario
We cleaned up the historical file, set a quarterly tax provision, so the instalments and the year-end balance were funded before they came due, and prepared the due-diligence package the buyer's advisers actually asked for.
The result — A subscription business tracking churn, Ottawa, Ontario
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 — Pre-Raise Technology Company, Kelowna
Client: A technology company preparing to raise · Where: Kelowna, British Columbia · Engagement: 3 weeks, fixed fee
Combined saving$45,000
ScopeCorporate + personal
Future yearsNo rework needed
The situation — A technology company preparing to raise, Kelowna, British Columbia
Nothing was wrong at a technology company preparing to raise in Kelowna, British Columbia — the filings were on time and accurate. What they were not was planned. An owner making hiring decisions on last quarter’s bank balance had never been reviewed.
What we did for A technology company preparing to raise, Kelowna, British Columbia
We separated customer prepayments from earned revenue in the reporting, so the cash position and the tax position were visible at the same time, 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 — A technology company preparing to raise, Kelowna, British Columbia
$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 — Multi-Line Service Business, Brampton
Client: A business whose margin varies by service line · Where: Brampton, Ontario · Engagement: 11 weeks, fixed fee
Amount reversed$105,000
ObjectionAllowed in full
Account balanceNil
The situation — A business whose margin varies by service line, Brampton, Ontario
A business whose margin varies by service line in Brampton, Ontario had been reassessed for $105,000 and had 11 days left on the objection deadline. The reassessment rested on a healthy bank balance made up almost entirely of deposits for work not yet performed.
What we did for A business whose margin varies by service line, Brampton, Ontario
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 — A business whose margin varies by service line, Brampton, Ontario
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, Founder and Tax Accountant. 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.
