6 Outsourced Accounting Services 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 outsourced accounting services work, not a general example.
Case Study 1 · Missed incentive claimed
$83,000 In Credits Claimed That Prior Filings Had Missed — Commercial Cleaning Contractor, Barrie
A commercial cleaning contractor in Barrie, Ontario had been filing for 7 years without ever claiming the incentives its activity qualified for. Behind that sat a shareholder loan account that had drifted for three years with no supporting entries.
What we did
We tested each activity against the eligibility criteria rather than the description on the invoice, then 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
$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 — Independent Pharmacy, Lethbridge
Client: An independent pharmacy · Where: Lethbridge, Alberta · Engagement: 11 weeks, fixed fee
Arbitrary tax vacated$120,000
Years brought current3
Account statusCurrent
The situation
3 years of unfiled returns had turned into notional assessments at an independent pharmacy in Lethbridge, Alberta, with two sets of numbers — one in the accounting file, one the owner actually ran the business on underneath. Collections had already started.
What we did
We separated personal and corporate spending, cleared the shareholder loan through a documented salary and dividend mix, and restated the comparative year, then filed every outstanding year in chronological order so the CRA could vacate the notional assessments cleanly.
The result
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 — 14-Person Design Agency, Vancouver
Client: A 14-person design agency · Where: Vancouver, British Columbia · Engagement: 8 weeks, fixed fee
Amount reversed$55,000
ObjectionAllowed in full
Account balanceNil
The situation
A 14-person design agency in Vancouver, British Columbia had been reassessed for $55,000 and had 12 days left on the objection deadline. The reassessment rested on year-end statements that arrived four months late and never tied to the bank.
What we did
We filed the objection inside the deadline with a complete submission rather than a placeholder, and 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.
The result
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 — Regional Courier Operator, Ottawa
A regional courier operator in Ottawa, Ontario was carrying a shareholder loan account that had drifted for three years with no supporting entries. Nothing reconciled, and every filing started with 29 months of cleanup.
What we did
We rebuilt from source rather than correcting on top of the existing file. We reconciled the inter-company accounts, papered the arrangement with a written agreement, and aligned both corporations’ year-ends, then set the routine that keeps it clean.
The result
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 — Two-Partner Engineering Firm, Surrey
Client: A two-partner engineering firm · Where: Surrey, British Columbia · Engagement: 9 weeks, fixed fee
Saving identified$54,000
RecurringYes
Positions documentedAll
The situation
A two-partner engineering firm in Surrey, British Columbia asked for a second opinion on outsourced accounting services after three years of rising tax. The review found a bank that refused to renew an operating line without compliant statements.
What we did
We built the comparison first — current structure against two alternatives — and then 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
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 — Machine-Shop Owner-Operator, London
A machine-shop owner-operator in London, Ontario received a proposal letter opening a review of outsourced accounting services. The CRA had identified inter-company balances between two related corporations that had never been reconciled and proposed an adjustment of $118,000, with 30 days to respond.
What we did
We treated the response as an evidence exercise rather than an argument. We separated personal and corporate spending, cleared the shareholder loan through a documented salary and dividend mix, and restated the comparative year, then indexed every supporting document against the specific line the auditor had questioned.
The result
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 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.
