6 worked Investor-Ready Financial Statements 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 investor-ready financial statements work, not a specific client's file.
Client: A corporation restating a prior year · Where: Lethbridge, Alberta · Engagement: 6 weeks, fixed fee
Overpayment refunded$96,000
Late remittances sinceZero
ScheduleAutomated
The situation — A corporation restating a prior year, Lethbridge, Alberta
Remittances at a corporation restating a prior year in Lethbridge, Alberta were consistently late by a few days, which was enough to trigger penalties every quarter. Behind it sat a shareholder agreement calling for audited statements that had been satisfied with a compilation for years.
What we did for A corporation restating a prior year, Lethbridge, Alberta
We described the revenue and inventory policies in the basis-of-accounting note in terms a lender could follow without asking a question, then moved the remittance dates into a scheduled process rather than a monthly decision.
The result — A corporation restating a prior year, Lethbridge, Alberta
Penalties stopped from the following remittance onwards, and $96,000 of overpaid instalments was refunded.
Case Study 2 · Deadline rescue
$143,000 Late-Filing Penalty Cancelled On Relief Application — Government Funding Applicant, Barrie
Client: A business applying for government funding · Where: Barrie, Ontario · Engagement: 10 weeks, fixed fee
Penalty cancelled$143,000
Relief applicationGranted
ReturnAccepted as filed
The situation — A business applying for government funding, Barrie, Ontario
A business applying for government funding in Barrie, Ontario had already missed one deadline and was about to miss a second. Behind it sat a bank asking for a review engagement while the file only supported a compilation, and a penalty of $143,000 was accruing.
What we did for A business applying for government funding, Barrie, Ontario
We split the work into what had to happen before the deadline and what could follow it, then compressed the close to 45 days by moving reconciliations into the monthly cycle, so the covenant deadline stopped being a scramble.
The result — A business applying for government funding, Barrie, Ontario
The outstanding return was accepted as filed, and the taxpayer relief application cancelled $143,000 of the penalty already assessed on the earlier year.
Case Study 3 · Structure rebuilt
Reorganisation Completed Tax-Deferred, $57,000 Saved Each Year — Business Preparing for Sale, Victoria
Client: A business preparing for sale · Where: Victoria, British Columbia · Engagement: 7 weeks, fixed fee
Annual saving$57,000
Tax on reorganisationDeferred
Elections filedOn time
The situation — A business preparing for sale, Victoria, British Columbia
A business preparing for sale in Victoria, British Columbia had outgrown the structure it started with. A prior-year restatement with no note explaining what changed was the immediate problem; the longer-term one was that the structure blocked the next step.
What we did for A business preparing for sale, Victoria, British Columbia
We mapped the current structure, modelled the target, and prepared the supporting schedule for every material balance in advance, which cut the queries the engagement had to raise — with the tax-deferred elections filed on time and the supporting valuations documented.
The result — A business preparing for sale, Victoria, British Columbia
The reorganisation completed without triggering tax, and the new structure saves approximately $57,000 a year while removing the exposure the old one carried.
Case Study 4 · Sale and succession
Share Sale Restructured, $715,000 Less Tax On Closing — Review Engagement Candidate, Regina
Client: A company whose lender asked for a review engagement · Where: Regina, Saskatchewan · Engagement: 4 weeks, fixed fee
Tax saved on closing$715,000
PriceAs agreed
Post-closing adjustmentsNone
The situation — A company whose lender asked for a review engagement, Regina, Saskatchewan
A company whose lender asked for a review engagement in Regina, Saskatchewan was preparing to sell. Due diligence surfaced no valuation on file to support the price the parties had agreed, which would have reduced the price or killed the deal outright.
What we did for A company whose lender asked for a review engagement, Regina, Saskatchewan
We cleaned up the historical file, read the shareholder agreement and the loan documents, established what level of assurance each user actually required, and scoped the engagement to the highest of them, and prepared the due-diligence package the buyer's advisers actually asked for.
The result — A company whose lender asked for a review engagement, Regina, Saskatchewan
The deal closed at the agreed price. $715,000 of tax was saved against the structure originally proposed, with no post-closing adjustment.
Case Study 5 · CRA review defended
Audit Defence Closed In 4 Weeks, $98,000 Cleared — Reporting Franchisee, London
Client: A franchisee reporting to its franchisor · Where: London, Ontario · Engagement: 4 weeks, fixed fee
Proposed tax cleared$98,000
Review duration4 weeks
OutcomeNo change
The situation — A franchisee reporting to its franchisor, London, Ontario
A franchisee reporting to its franchisor in London, Ontario was selected for review after statements delivered five months after year-end, past the covenant deadline showed up in the CRA's automated matching. The proposed adjustment on investor-ready financial statements came to $98,000.
What we did for A franchisee reporting to its franchisor, London, Ontario
We converted the records to the accrual basis, restated the comparative year with proper disclosure, and rebuilt the statement package around the bonding company’s requirements. Every figure in the response traced to a source record the auditor could verify without asking a second question.
The result — A franchisee reporting to its franchisor, London, Ontario
The review closed with no change. $98,000 of proposed tax came off the table, and the documentation now in place makes the next review a short one.
Case Study 6 · Planning that cut the bill
Remuneration Review Saved $24,000 Across Corporate And Personal Returns — Refinancing Borrower, Surrey
Client: A company refinancing its operating line · Where: Surrey, British Columbia · Engagement: 5 weeks, fixed fee
Combined saving$24,000
ScopeCorporate + personal
Future yearsNo rework needed
The situation — A company refinancing its operating line, Surrey, British Columbia
Nothing was wrong at a company refinancing its operating line in Surrey, British Columbia — the filings were on time and accurate. What they were not was planned. A buyer’s due-diligence list that the existing statement package could not answer had never been reviewed.
What we did for A company refinancing its operating line, Surrey, British Columbia
We separated the bookkeeping work from the assurance engagement so the independence question had one clear answer, 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 company refinancing its operating line, Surrey, British Columbia
$24,000 came off the combined corporate and personal tax bill, and the structure holds for future years without further work.
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.
