6 worked Month-End Closing Services 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 month-end closing services work, not a specific client's file.
Case Study 1 · Objection and relief
Notice Of Objection Allowed In Full, $43,000 Reversed — Specialty Food Importer, Moncton
Client: A specialty food importer · Where: Moncton, New Brunswick · Engagement: 7 weeks, fixed fee
Amount reversed$43,000
ObjectionAllowed in full
Account balanceNil
The situation — A specialty food importer, Moncton, New Brunswick
A specialty food importer in Moncton, New Brunswick had been reassessed for $43,000. 14 days were left on the objection deadline. The reassessment rested on a bank that refused to renew an operating line without compliant statements.
What we did for A specialty food importer, Moncton, New Brunswick
We filed the objection inside the deadline with a complete submission rather than a placeholder. Alongside it, we separated personal and corporate spending, cleared the shareholder loan through a documented salary and dividend mix, and restated the comparative year.
The result — A specialty food importer, Moncton, New Brunswick
The appeals officer allowed the objection in full. $43,000 was reversed and the account returned to a nil balance.
Case Study 2 · Planning that cut the bill
$52,000 Cut From The Annual Tax Bill — Two-Partner Engineering Firm, London
The situation — A two-partner engineering firm, London, Ontario
A two-partner engineering firm in London, Ontario was compliant but paying more than it needed to. The prior year had been filed correctly. It still left capital assets written off in full in the year of purchase, with no fixed-asset schedule behind the deduction on the table.
What we did for A two-partner engineering firm, London, Ontario
We modelled the current position against the alternatives before changing anything. Then we moved accruals, prepaids and depreciation into a documented month-end checklist, so they stopped being year-end discoveries.
The result — A two-partner engineering firm, London, Ontario
The change saved $52,000 in the first year and repeats annually. Nothing about the filings became more aggressive. The position is simply the one the rules already allowed.
Case Study 3 · Sale and succession
$540,000 Sheltered By The Lifetime Capital Gains Exemption — Off-Calendar Year-End Supplier, Mississauga
Client: A supplier with an off-calendar fiscal year-end · Where: Mississauga, Ontario · Engagement: 10 weeks, fixed fee
Gain sheltered$540,000
ClosingOn schedule
Share qualificationMet
The situation — A supplier with an off-calendar fiscal year-end, Mississauga, Ontario
A supplier with an off-calendar fiscal year-end in Mississauga, Ontario had an offer on the table and 17 months to close. The shares did not qualify for the capital gains exemption. No valuation on file to support the price the parties had agreed was part of the reason.
What we did for A supplier with an off-calendar fiscal year-end, Mississauga, Ontario
We purified the corporation so the shares met the qualifying tests. We valued work in progress on one consistent basis and documented the method, so the comparative year could be relied on. All of it was done well ahead of the closing date.
The result — A supplier with an off-calendar fiscal year-end, Mississauga, Ontario
The sale closed on schedule with $540,000 sheltered by the lifetime capital gains exemption across the shareholders.
Client: A corporation sharing administration with a related company · Where: Barrie, Ontario · Engagement: 7 weeks, fixed fee
Penalty cancelled$32,000
Relief applicationGranted
ReturnAccepted as filed
The situation — A corporation sharing administration with a related company, Barrie, Ontario
A corporation sharing administration with a related company in Barrie, Ontario had already missed one deadline and was about to miss a second. Behind it sat work in progress carried at billing value one year and at cost the next, so neither year was comparable. A penalty of $32,000 was accruing.
What we did for A corporation sharing administration with a related company, Barrie, Ontario
We split the work into what had to happen before the deadline and what could follow it. Then we reconciled the inter-company accounts, papered the arrangement with a written agreement, and aligned both corporations’ year-ends.
The result — A corporation sharing administration with a related company, Barrie, Ontario
The outstanding return was accepted as filed, and the taxpayer relief application cancelled $32,000 of the penalty already assessed on the earlier year.
Case Study 5 · Scaling without breaking
Growth Handled Without A Missed Filing, $150,000 Freed — Fitness Studio Group, Burnaby
Client: A boutique fitness studio group · Where: Burnaby, British Columbia · Engagement: 10 weeks, fixed fee
Cash freed$150,000
Compliance failuresNone
ReportingMonthly
The situation — A boutique fitness studio group, Burnaby, British Columbia
A boutique fitness studio group in Burnaby, British Columbia was opening in a second province. That meant different filing obligations and a different payroll regime. A shareholder loan account that had drifted for three years with no supporting entries already sat in the file.
What we did for A boutique fitness studio group, Burnaby, British Columbia
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. We then put monthly reporting in place. That let the owner see the cash effect of growth while there was still time to act on it.
The result — A boutique fitness studio group, Burnaby, British Columbia
Growth was absorbed without a compliance failure. $150,000 of cash was released, and the monthly reporting now flags a problem while it is still small.
Case Study 6 · Backlog brought current
6 Years Filed, $44,000 Removed From The Assessed Balance — Independent Pharmacy, Edmonton
Client: An independent pharmacy · Where: Edmonton, Alberta · Engagement: 11 weeks, fixed fee
Years filed6
Assessed balance removed$44,000
CollectionsStopped
The situation — An independent pharmacy, Edmonton, Alberta
An independent pharmacy in Edmonton, Alberta had not filed for 6 years. The CRA had issued arbitrary assessments. The business was carrying a year-end moved informally, leaving twelve months of trading reported as though nothing had changed. That came on top of a growing interest balance.
What we did for An independent pharmacy, Edmonton, Alberta
We started with the oldest year and worked forward so each year's closing balances fed the next. 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. We filed the years in sequence rather than all at once.
The result — An independent pharmacy, Edmonton, Alberta
Every year is now filed and assessed on actual figures. The notional assessments were vacated and $44,000 of the estimated balance came off, with a payment arrangement covering the rest.
Reviewed by Udit Gupta, Founder and Tax Accountant for the 2025 tax year. 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.
