6 worked Outsourced Accounting 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 outsourced accounting services work, not a specific client's file.
Case Study 1 · Missed incentive claimed
$83,000 In Credits Claimed That Prior Filings Had Missed — Design Agency, Barrie
The situation — A 14-person design agency, Barrie, Ontario
A 14-person design agency in Barrie, Ontario had been filing for 7 years. In that time, the incentives its activity qualified for were never claimed. Behind that sat work in progress carried at billing value one year and at cost the next, so neither year was comparable.
What we did for A 14-person design agency, Barrie, Ontario
We tested each activity against the eligibility criteria rather than the description on the invoice. Then 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.
The result — A 14-person design agency, Barrie, Ontario
$83,000 in credits claimed, with the open prior years adjusted as well. The claim passed review without adjustment.
Case Study 2 · Backlog brought current
$120,000 Of Arbitrary Assessments Vacated After 3 Years — Commercial Cleaning Contractor, Lethbridge
Client: A commercial cleaning contractor · Where: Lethbridge, Alberta · Engagement: 11 weeks, fixed fee
Arbitrary tax vacated$120,000
Years brought current3
Account statusCurrent
The situation — A commercial cleaning contractor, Lethbridge, Alberta
3 years of unfiled returns had turned into notional assessments at a commercial cleaning contractor in Lethbridge, Alberta. Underneath lay year-end statements that arrived four months late and never tied to the bank. Collections had already started.
What we did for A commercial cleaning contractor, Lethbridge, Alberta
We reconciled the inter-company accounts, papered the arrangement with a written agreement, and aligned both corporations’ year-ends. We then filed every outstanding year in chronological order so the CRA could vacate the notional assessments cleanly.
The result — A commercial cleaning contractor, Lethbridge, Alberta
All 3 years were accepted as filed. $120,000 of arbitrarily assessed tax was vacated, collections action stopped, and the account is current for the first time in 3 years.
Case Study 3 · Objection and relief
Notice Of Objection Allowed In Full, $55,000 Reversed — Two-Partner Engineering Firm, Vancouver
Client: A two-partner engineering firm · Where: Vancouver, British Columbia · Engagement: 8 weeks, fixed fee
Amount reversed$55,000
ObjectionAllowed in full
Account balanceNil
The situation — A two-partner engineering firm, Vancouver, British Columbia
A two-partner engineering firm in Vancouver, British Columbia had been reassessed for $55,000. 12 days were left on the objection deadline. The reassessment rested on work in progress carried at billing value one year and at cost the next, so neither year was comparable.
What we did for A two-partner engineering firm, Vancouver, British Columbia
We filed the objection inside the deadline with a complete submission rather than a placeholder. Alongside it, we built a fixed-asset continuity schedule from the purchase invoices. We set the capital cost allowance claim class by class rather than claiming the maximum by default.
The result — A two-partner engineering firm, Vancouver, British Columbia
The appeals officer allowed the objection in full. $55,000 was reversed and the account returned to a nil balance.
Case Study 4 · Records and systems rebuilt
29 Months Reconciled And $10,500 Of Input Tax Recovered — Related-Company Pair, Ottawa
Client: A corporation sharing administration with a related company · Where: Ottawa, Ontario · Engagement: 7 weeks, fixed fee
Months reconciled29
Input tax recovered$10,500
Close time9 days
The situation — A corporation sharing administration with a related company, Ottawa, Ontario
Nothing reconciled at a corporation sharing administration with a related company in Ottawa, Ontario. Every filing started with 29 months of cleanup. The file was carrying inter-company balances between two related corporations that had never been reconciled.
What we did for A corporation sharing administration with a related company, Ottawa, Ontario
We rebuilt from source rather than correcting on top of the existing file. We valued work in progress on one consistent basis and documented the method, so the comparative year could be relied on. Then we set the routine that keeps it clean.
The result — A corporation sharing administration with a related company, Ottawa, Ontario
29 months reconciled to the bank. The close now takes 9 days, and $10,500 of previously unclaimable input tax was recovered in the process.
Case Study 5 · Planning that cut the bill
$54,000 Saved By Correcting What Prior Filings Had Missed — Independent Pharmacy, Surrey
Client: An independent pharmacy · Where: Surrey, British Columbia · Engagement: 9 weeks, fixed fee
Saving identified$54,000
RecurringYes
Positions documentedAll
The situation — An independent pharmacy, Surrey, British Columbia
An independent pharmacy in Surrey, British Columbia asked for a second opinion on outsourced accounting services. That followed three years of rising tax. The review found a shareholder loan account that had drifted for three years with no supporting entries.
What we did for An independent pharmacy, Surrey, British Columbia
We built the comparison first: current structure against two alternatives. Then we reconciled the general ledger to the GIFI schedules filed for each open year and corrected the two years where they disagreed.
The result — An independent pharmacy, Surrey, British Columbia
First-year saving of $54,000, with the same benefit recurring. Every position taken is documented and supported in the file.
Case Study 6 · CRA review defended
$118,000 Proposed Adjustment Withdrawn In Full — Quarterly-Close Practice, London
Client: A professional practice that closes its books quarterly · Where: London, Ontario · Engagement: 7 weeks, fixed fee
Adjustment withdrawn$118,000
File closed in7 weeks
Penalties assessedNone
The situation — A professional practice that closes its books quarterly, London, Ontario
A professional practice that closes its books quarterly in London, Ontario received a proposal letter opening a review of outsourced accounting services. The CRA had identified a bank that refused to renew an operating line without compliant statements. It proposed an adjustment of $118,000, with 30 days to respond.
What we did for A professional practice that closes its books quarterly, London, Ontario
We treated the response as an evidence exercise rather than an argument. We moved accruals, prepaids and depreciation into a documented month-end checklist, so they stopped being year-end discoveries. We then indexed every supporting document against the specific line the auditor had questioned.
The result — A professional practice that closes its books quarterly, London, Ontario
The proposed adjustment was withdrawn in full — all $118,000 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.
