6 Merchant Account Reconciliation 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 merchant account reconciliation work, not a general example.
Case Study 1 · Scaling without breaking
Growth Handled Without A Missed Filing, $76,000 Freed — Two-Partner Engineering Firm, Red Deer
Client: A two-partner engineering firm · Where: Red Deer, Alberta · Engagement: 10 weeks, fixed fee
Cash freed$76,000
Compliance failuresNone
ReportingMonthly
The situation
A two-partner engineering firm in Red Deer, Alberta was opening in a second province — different filing obligations, a different payroll regime, and a shareholder loan account that had drifted for three years with no supporting entries already in the file.
What we did
We set a monthly close calendar with a fixed cut-off, so the year-end became a review of work already done rather than a twelve-month rebuild 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. $76,000 of cash was released, and the monthly reporting now flags a problem while it is still small.
Case Study 2 · Objection and relief
$129,000 Of Penalties And Interest Cancelled On Relief — Boutique Fitness Studio Group, Kelowna
Client: A boutique fitness studio group · Where: Kelowna, British Columbia · Engagement: 8 weeks, fixed fee
Penalties and interest cancelled$129,000
Relief groundsAccepted
AssessmentAdjusted to filed position
The situation
An assessment of $129,000 landed at a boutique fitness studio group in Kelowna, British Columbia following a desk review. The auditor had not seen the records behind a bank that refused to renew an operating line without compliant statements.
What we did
We rebuilt the trial balance from source documents, reconciled every bank and credit-card account, and issued a CSRS 4200 compilation with a proper basis-of-accounting note, then set out the legislative basis for the position alongside the documents supporting it.
The result
$129,000 of penalties and interest was cancelled under the taxpayer relief provisions, and the underlying assessment was adjusted to match the filed position.
Case Study 3 · CRA review defended
Audit Defence Closed In 3 Weeks, $57,000 Cleared — Growing Landscaping Company, Vancouver
Client: A growing landscaping company · Where: Vancouver, British Columbia · Engagement: 3 weeks, fixed fee
Proposed tax cleared$57,000
Review duration3 weeks
OutcomeNo change
The situation
A growing landscaping company in Vancouver, British Columbia was selected for review after inter-company balances between two related corporations that had never been reconciled showed up in the CRA's automated matching. The proposed adjustment on merchant account reconciliation came to $57,000.
What we did
We reconciled the inter-company accounts, papered the arrangement with a written agreement, and aligned both corporations’ year-ends. 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. $57,000 of proposed tax came off the table, and the documentation now in place makes the next review a short one.
Case Study 4 · Deadline rescue
$69,000 Late-Filing Penalty Cancelled On Relief Application — Commercial Cleaning Contractor, Hamilton
A commercial cleaning contractor in Hamilton, Ontario had already missed one deadline and was about to miss a second. Behind it sat two sets of numbers — one in the accounting file, one the owner actually ran the business on, and a penalty of $69,000 was accruing.
What we did
We split the work into what had to happen before the deadline and what could follow it, then separated personal and corporate spending, cleared the shareholder loan through a documented salary and dividend mix, and restated the comparative year.
The result
The outstanding return was accepted as filed, and the taxpayer relief application cancelled $69,000 of the penalty already assessed on the earlier year.
Case Study 5 · Missed incentive claimed
$11,500 Credit Claim Filed And Accepted Without Adjustment — Independent Pharmacy, Burnaby
Client: An independent pharmacy · Where: Burnaby, British Columbia · Engagement: 6 weeks, fixed fee
Claim value$11,500
AcceptedWithout adjustment
RepeatableAnnually
The situation
An independent pharmacy in Burnaby, British Columbia assumed the credits did not apply to a business its size. Inter-company balances between two related corporations that had never been reconciled meant they had applied all along.
What we did
We identified the qualifying activity, built the documentation to support it, and set a monthly close calendar with a fixed cut-off, so the year-end became a review of work already done rather than a twelve-month rebuild.
The result
$11,500 recovered. Because the eligibility analysis is on file, the same claim can be repeated each year with a fraction of the effort.
Case Study 6 · Records and systems rebuilt
Month-End Close Cut From 6 Weeks To 8 Days — Machine-Shop Owner-Operator, Victoria
Client: A machine-shop owner-operator · Where: Victoria, British Columbia · Engagement: 11 weeks, fixed fee
Close time before6 weeks
Close time after8 days
Year-endReview, not rebuild
The situation
The accounting file at a machine-shop owner-operator in Victoria, British Columbia was built on a shareholder loan account that had drifted for three years with no supporting entries. The year-end had taken 6 weeks each of the last three years.
What we did
We rebuilt the trial balance from source documents, reconciled every bank and credit-card account, and issued a CSRS 4200 compilation with a proper basis-of-accounting note 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 8 days instead of 6 weeks, and the year-end is a review rather than a reconstruction.
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.
