6 worked Inventory 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 inventory bookkeeping work, not a specific client's file.
Case Study 1 · Backlog brought current
Collections Halted And $43,000 Cut From A 3-Year Backlog — Wedding Photography Studio, Mississauga
Client: A wedding photography studio · Where: Mississauga, Ontario · Engagement: 7 weeks, fixed fee
Balance reduced by$43,000
Backlog cleared3 years
CollectionsHalted
The situation — A wedding photography studio, Mississauga, Ontario
By the time a wedding photography studio in Mississauga, Ontario called, 3 years were outstanding and the CRA had assessed on estimates. Underneath it sat input tax credits claimed on receipts that had already been claimed once.
What we did for A wedding photography studio, Mississauga, Ontario
We reconstructed the records year by year and set up a documented chart of accounts, a receipt-capture workflow and a monthly reconciliation that closes within ten days of month-end. Each filing replaced an arbitrary assessment with a real one.
The result — A wedding photography studio, Mississauga, Ontario
The account is current. Filing on real numbers rather than CRA estimates reduced the balance by $43,000, and a relief application addressed part of the accumulated interest.
Case Study 2 · Missed incentive claimed
$134,000 In Credits Claimed That Prior Filings Had Missed — Courier Subcontractor, Ottawa
Client: A courier subcontractor paid by the drop · Where: Ottawa, Ontario · Engagement: 8 weeks, fixed fee
Credits claimed$134,000
Years adjusted3
Review outcomeNo adjustment
The situation — A courier subcontractor paid by the drop, Ottawa, Ontario
A courier subcontractor paid by the drop in Ottawa, Ontario had been filing for 3 years without ever claiming the incentives its activity qualified for. Behind that sat eighteen months of unreconciled transactions and a shoebox of receipts.
What we did for A courier subcontractor paid by the drop, Ottawa, Ontario
We tested each activity against the eligibility criteria rather than the description on the invoice, then separated the owner’s personal spending out of the corporate accounts and cleared the resulting shareholder loan properly.
The result — A courier subcontractor paid by the drop, Ottawa, Ontario
$134,000 in credits claimed, with the open prior years adjusted as well. The claim passed review without adjustment.
Case Study 3 · Scaling without breaking
Growth Handled Without A Missed Filing, $105,000 Freed — Mobile Pet-Grooming Company, Hamilton
Client: A mobile pet-grooming company · Where: Hamilton, Ontario · Engagement: 9 weeks, fixed fee
Cash freed$105,000
Compliance failuresNone
ReportingMonthly
The situation — A mobile pet-grooming company, Hamilton, Ontario
A mobile pet-grooming company in Hamilton, Ontario was opening in a second province — different filing obligations, a different payroll regime, and sales recorded from bank deposits, so processor fees, chargebacks and refunds appeared nowhere in the ledger already in the file.
What we did for A mobile pet-grooming company, Hamilton, Ontario
We reconciled receivables and payables to source documents and wrote off the balances that were genuinely uncollectible, with support 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 mobile pet-grooming company, Hamilton, Ontario
Growth was absorbed without a compliance failure. $105,000 of cash was released, and the monthly reporting now flags a problem while it is still small.
Case Study 4 · Cash and remittance control
$35,500 Of Working Capital Freed From The Tax Cycle — Specialty Coffee Roaster, Halifax
Client: A specialty coffee roaster · Where: Halifax, Nova Scotia · Engagement: 10 weeks, fixed fee
Working capital freed$35,500
On-time remittancesEvery period since
Forecast horizon13 weeks
The situation — A specialty coffee roaster, Halifax, Nova Scotia
A specialty coffee roaster in Halifax, Nova Scotia was profitable on paper and short of cash every month. Three years of returns filed off numbers nobody could trace back to a bank statement explained most of the gap.
What we did for A specialty coffee roaster, Halifax, Nova Scotia
We rebuilt sales from the processor settlement reports so gross sales, fees and refunds each landed in an account of their own and built a thirteen-week cash view so tax payments stopped competing with payroll for the same dollars.
The result — A specialty coffee roaster, Halifax, Nova Scotia
$35,500 was released back into working capital. Remittances have been on time every period since, and the forecast shows the tax outflow before it lands.
Case Study 5 · Deadline rescue
5-Week Turnaround Beat The Deadline And Saved $113,000 — Multi-Processor Online Seller, London
Client: An online seller reconciling three payment processors · Where: London, Ontario · Engagement: 5 weeks, fixed fee
Late-filing penalty avoided$113,000
Filed with18 days to spare
Next yearPapers ready
The situation — An online seller reconciling three payment processors, London, Ontario
With the deadline for inventory bookkeeping weeks away, an online seller reconciling three payment processors in London, Ontario was carrying a bookkeeping file where owner draws, payroll and supplier payments all landed in the same account. The exposure if the date slipped was around $113,000.
What we did for An online seller reconciling three payment processors, London, 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. The filing went in complete rather than provisional, so there was no amended return to follow.
The result — An online seller reconciling three payment processors, London, Ontario
Filed with 18 days to spare. $113,000 in late-filing penalties avoided, and the working papers are ready for the following year.
Case Study 6 · Structure rebuilt
Corporate Structure Rebuilt For $55,000 Of Annual Savings — Small Law Practice, Brampton
Client: A small law practice · Where: Brampton, Ontario · Engagement: 3 weeks, fixed fee
Saving per year$55,000
DocumentationComplete
Transfer basisRollover
The situation — A small law practice, Brampton, Ontario
The structure at a small law practice in Brampton, Ontario had been set up years earlier for a business that no longer existed, and eighteen months of unreconciled transactions and a shoebox of receipts had become expensive.
What we did for A small law practice, Brampton, 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. The reorganisation used the rollover provisions rather than a taxable transfer, so no tax fell due on the restructuring itself.
The result — A small law practice, Brampton, Ontario
$55,000 of annual saving, achieved on a tax-deferred basis. The minute book, elections and valuations are all in the file.
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.
