6 worked Monthly 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 monthly bookkeeping work, not a specific client's file.
Case Study 1 · Missed incentive claimed
$102,000 Credit Claim Filed And Accepted Without Adjustment — Courier Subcontractor, Vancouver
Client: A courier subcontractor paid by the drop · Where: Vancouver, British Columbia · Engagement: 9 weeks, fixed fee
Claim value$102,000
AcceptedWithout adjustment
RepeatableAnnually
The situation — A courier subcontractor paid by the drop, Vancouver, British Columbia
A courier subcontractor paid by the drop in Vancouver, British Columbia assumed the credits did not apply to a business its size. A receivables list that included invoices collected eleven months earlier meant they had applied all along.
What we did for A courier subcontractor paid by the drop, Vancouver, British Columbia
We identified the qualifying activity and built the documentation to support it. Then we rebuilt the ledger from bank and card statements and matched every receipt to a transaction. We removed duplicated input tax credits before they became a review.
The result — A courier subcontractor paid by the drop, Vancouver, British Columbia
$102,000 recovered. Because the eligibility analysis is on file, the same claim can be repeated each year with a fraction of the effort.
Case Study 2 · Backlog brought current
Collections Halted And $45,000 Cut From A 3-Year Backlog — Home-Renovation Contractor, Toronto
The situation — A home-renovation contractor, Toronto, Ontario
By the time a home-renovation contractor in Toronto, Ontario called, 3 years were outstanding. The CRA had assessed on estimates. Underneath it sat a receivables list that included invoices collected eleven months earlier.
What we did for A home-renovation contractor, Toronto, Ontario
We reconstructed the records year by year. 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. Each filing replaced an arbitrary assessment with a real one.
The result — A home-renovation contractor, Toronto, Ontario
The account is current. Filing on real numbers rather than CRA estimates reduced the balance by $45,000, and a relief application addressed part of the accumulated interest.
Case Study 3 · Objection and relief
Desk-Review Assessment Of $114,000 Vacated — Equipment Rental Yard, Guelph
The situation — An equipment rental yard, Guelph, Ontario
An equipment rental yard in Guelph, Ontario was carrying $114,000 of penalties and interest. The charges arose from input tax credits claimed on receipts that had already been claimed once. Much of that amount accumulated during a period the CRA itself had delayed.
What we did for An equipment rental yard, Guelph, Ontario
We rebuilt sales from the processor settlement reports so gross sales, fees and refunds each landed in an account of their own. We framed the relief application on the specific grounds the CRA guidelines recognise rather than on general hardship.
The result — An equipment rental yard, Guelph, Ontario
The assessment was vacated. $114,000 came off the account, and the documentation now on file makes the same position straightforward to defend next time.
Case Study 4 · Records and systems rebuilt
Month-End Close Cut From 8 Weeks To 7 Days — Mobile Pet-Grooming Company, Barrie
Client: A mobile pet-grooming company · Where: Barrie, Ontario · Engagement: 11 weeks, fixed fee
Close time before8 weeks
Close time after7 days
Year-endReview, not rebuild
The situation — A mobile pet-grooming company, Barrie, Ontario
The accounting file at a mobile pet-grooming company in Barrie, Ontario had a weak foundation. It was built on sales recorded from bank deposits, so processor fees, chargebacks and refunds appeared nowhere in the ledger. The year-end had taken 8 weeks each of the last three years.
What we did for A mobile pet-grooming company, Barrie, Ontario
We separated the owner’s personal spending out of the corporate accounts and cleared the resulting shareholder loan properly. We also moved the reconciliations into the monthly cycle, so the year-end stopped being a rebuild.
The result — A mobile pet-grooming company, Barrie, Ontario
The file reconciles. Month-end closes in 7 days instead of 8 weeks, and the year-end is a review rather than a reconstruction.
Case Study 5 · Planning that cut the bill
$70,000 Cut From The Annual Tax Bill — Two-Location Cafe, Windsor
The situation — A two-location cafe, Windsor, Ontario
A two-location cafe in Windsor, Ontario was compliant but paying more than it needed to. The prior year had been filed correctly. It still left a bookkeeping file where owner draws, payroll and supplier payments all landed in the same account on the table.
What we did for A two-location cafe, Windsor, Ontario
We modelled the current position against the alternatives before changing anything. Then we set up a documented chart of accounts, a receipt-capture workflow and a monthly reconciliation that closes within ten days of month-end.
The result — A two-location cafe, Windsor, Ontario
The change saved $70,000 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 6 · CRA review defended
$117,000 Proposed Adjustment Withdrawn In Full — Dental Hygiene Clinic, Red Deer
Client: A dental hygiene clinic · Where: Red Deer, Alberta · Engagement: 7 weeks, fixed fee
Adjustment withdrawn$117,000
File closed in7 weeks
Penalties assessedNone
The situation — A dental hygiene clinic, Red Deer, Alberta
A dental hygiene clinic in Red Deer, Alberta received a proposal letter opening a review of monthly bookkeeping. The CRA had identified meals and entertainment coded at full cost with the input tax credit claimed on the whole amount. It proposed an adjustment of $117,000, with 30 days to respond.
What we did for A dental hygiene clinic, Red Deer, Alberta
We treated the response as an evidence exercise rather than an argument. We cleared the payroll and sales tax clearing accounts every month and tied each remittance to the liability it settled. We then indexed every supporting document against the specific line the auditor had questioned.
The result — A dental hygiene clinic, Red Deer, Alberta
The proposed adjustment was withdrawn in full — all $117,000 of it. The file closed in 7 weeks with no change to the assessed amounts and no penalty.
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.
