6 Lender-Ready Financial Statements 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 lender-ready financial statements work, not a general example.
Case Study 1 · Deadline rescue
Filed On Time From A Standing Start, $15,000 Penalty Avoided — Franchisee Reporting to Its, Mississauga
Client: A franchisee reporting to its franchisor · Where: Mississauga, Ontario · Engagement: 8 weeks, fixed fee
Penalty avoided$15,000
Turnaround8 weeks
FiledOn time
The situation
A franchisee reporting to its franchisor in Mississauga, Ontario came to us 8 weeks before its filing deadline with statements delivered five months after year-end, past the covenant deadline. A late filing would have triggered a penalty of roughly $15,000 before interest.
What we did
We worked backwards from the deadline. 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, prioritising the items that actually gated the filing and deferring everything that did not.
The result
The return was filed on time and complete. The $15,000 penalty never arose, and the compliance calendar we set means the next deadline is scheduled rather than discovered.
Case Study 2 · Scaling without breaking
Growth Handled Without A Missed Filing, $64,000 Freed — Business Applying for Government, Ottawa
Client: A business applying for government funding · Where: Ottawa, Ontario · Engagement: 4 weeks, fixed fee
Cash freed$64,000
Compliance failuresNone
ReportingMonthly
The situation
A business applying for government funding in Ottawa, Ontario was opening in a second province — different filing obligations, a different payroll regime, and a prior-year restatement with no note explaining what changed already in the file.
What we did
We compressed the close to 45 days by moving reconciliations into the monthly cycle, so the covenant deadline stopped being a scramble 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. $64,000 of cash was released, and the monthly reporting now flags a problem while it is still small.
Case Study 3 · Backlog brought current
Collections Halted And $102,000 Cut From A 6-Year Backlog — Company Under a Bank, Hamilton
Client: A company under a bank covenant · Where: Hamilton, Ontario · Engagement: 10 weeks, fixed fee
Balance reduced by$102,000
Backlog cleared6 years
CollectionsHalted
The situation
By the time a company under a bank covenant in Hamilton, Ontario called, 6 years were outstanding and the CRA had assessed on estimates. Underneath it sat a bank asking for a review engagement while the file only supported a compilation.
What we did
We reconstructed the records year by year and prepared a due-diligence-ready statement set with supporting schedules for each material balance. Each filing replaced an arbitrary assessment with a real one.
The result
The account is current. Filing on real numbers rather than CRA estimates reduced the balance by $102,000, and a relief application addressed part of the accumulated interest.
Case Study 4 · Records and systems rebuilt
Month-End Close Cut From 11 Weeks To 5 Days — Co-Operative Reporting to Members, Halifax
Client: A co-operative reporting to members · Where: Halifax, Nova Scotia · Engagement: 3 weeks, fixed fee
Close time before11 weeks
Close time after5 days
Year-endReview, not rebuild
The situation
The accounting file at a co-operative reporting to members in Halifax, Nova Scotia was built on a bonding limit capped because the last statements were prepared on a cash basis. The year-end had taken 11 weeks each of the last three years.
What we did
We upgraded the engagement to a CSRE 2400 review, completed the additional procedures, and delivered a package the lender accepted without conditions and moved the reconciliations into the monthly cycle, so the year-end stopped being a rebuild.
The result
The file reconciles. Month-end closes in 5 days instead of 11 weeks, and the year-end is a review rather than a reconstruction.
Case Study 5 · CRA review defended
Audit Defence Closed In 7 Weeks, $86,000 Cleared — Corporation Entering a Shareholder, London
Client: A corporation entering a shareholder buyout · Where: London, Ontario · Engagement: 7 weeks, fixed fee
Proposed tax cleared$86,000
Review duration7 weeks
OutcomeNo change
The situation
A corporation entering a shareholder buyout in London, Ontario was selected for review after a buyer’s due-diligence list that the existing statement package could not answer showed up in the CRA's automated matching. The proposed adjustment on lender-ready financial statements came to $86,000.
What we did
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
The review closed with no change. $86,000 of proposed tax came off the table, and the documentation now in place makes the next review a short one.
Case Study 6 · Structure rebuilt
Reorganisation Completed Tax-Deferred, $59,000 Saved Each Year — Company Refinancing Its Operating, Brampton
Client: A company refinancing its operating line · Where: Brampton, Ontario · Engagement: 8 weeks, fixed fee
Annual saving$59,000
Tax on reorganisationDeferred
Elections filedOn time
The situation
A company refinancing its operating line in Brampton, Ontario had outgrown the structure it started with. Statements delivered five months after year-end, past the covenant deadline was the immediate problem; the longer-term one was that the structure blocked the next step.
What we did
We mapped the current structure, modelled the target, and compressed the close to 45 days by moving reconciliations into the monthly cycle, so the covenant deadline stopped being a scramble — with the tax-deferred elections filed on time and the supporting valuations documented.
The result
The reorganisation completed without triggering tax, and the new structure saves approximately $59,000 a year while removing the exposure the old one carried.
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.
