6 Payroll 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 payroll reconciliation work, not a general example.
Case Study 1 · Missed incentive claimed
Incentive Review Recovered $13,000 Across 7 Open Years — Boutique Fitness Studio Group, Victoria
Client: A boutique fitness studio group · Where: Victoria, British Columbia · Engagement: 8 weeks, fixed fee
Recovered$13,000
Open years claimed7
Ongoing trackingIn place
The situation
An incentive review at a boutique fitness studio group in Victoria, British Columbia started from a simple question: what has never been claimed? The answer ran to 7 years, driven by two sets of numbers — one in the accounting file, one the owner actually ran the business on.
What we did
We reconciled the inter-company accounts, papered the arrangement with a written agreement, and aligned both corporations’ year-ends, documenting eligibility to the standard a reviewer would apply rather than the standard a claim form requires.
The result
The credits produced $13,000 across the open years, and the tracking now in place means the following year's claim is documented as the work happens rather than reconstructed afterwards.
Case Study 2 · CRA review defended
$100,000 Proposed Adjustment Withdrawn In Full — Regional Courier Operator, Saskatoon
A regional courier operator in Saskatoon, Saskatchewan received a proposal letter opening a review of payroll reconciliation. The CRA had identified two sets of numbers — one in the accounting file, one the owner actually ran the business on and proposed an adjustment of $100,000, with 30 days to respond.
What we did
We treated the response as an evidence exercise rather than an argument. 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, then indexed every supporting document against the specific line the auditor had questioned.
The result
The proposed adjustment was withdrawn in full — all $100,000 of it. The file closed in 5 weeks with no change to the assessed amounts and no penalty.
Case Study 3 · Scaling without breaking
Scaled To 21 Staff With $143,000 Of Working Capital Freed — Specialty Food Importer, Mississauga
A specialty food importer in Mississauga, Ontario was growing fast — headcount to 21 in eighteen months — and the back office had not kept up. A bank that refused to renew an operating line without compliant statements was the first thing to break.
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, and built the compliance calendar for the size the business was becoming rather than the size it had been.
The result
The business reached 21 staff with no missed remittance and no late filing. $143,000 of working capital was freed in the process.
Case Study 4 · Planning that cut the bill
$62,000 Saved By Correcting What Prior Filings Had Missed — Independent Pharmacy, Barrie
An independent pharmacy in Barrie, Ontario asked for a second opinion on payroll reconciliation after three years of rising tax. The review found year-end statements that arrived four months late and never tied to the bank.
What we did
We built the comparison first — current structure against two alternatives — and then 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
First-year saving of $62,000, with the same benefit recurring. Every position taken is documented and supported in the file.
Case Study 5 · Cash and remittance control
Instalments Rebased, $126,000 Of Cash Returned To The Business — Growing Landscaping Company, Brampton
Client: A growing landscaping company · Where: Brampton, Ontario · Engagement: 7 weeks, fixed fee
Cash returned$126,000
Instalment basisCurrent year
ReviewedQuarterly
The situation
A growing landscaping company in Brampton, Ontario was paying instalments calculated on a prior year that no longer reflected the business. Inter-company balances between two related corporations that had never been reconciled was tying up $126,000 of cash.
What we did
We rebased the instalments on the current-year estimate rather than the prior-year default, and reconciled the inter-company accounts, papered the arrangement with a written agreement, and aligned both corporations’ year-ends.
The result
$126,000 of cash stayed in the business, the penalty cycle ended, and the instalment position is reviewed each quarter against actual results.
Case Study 6 · Records and systems rebuilt
Month-End Close Cut From 9 Weeks To 8 Days — Two-Partner Engineering Firm, Winnipeg
The accounting file at a two-partner engineering firm in Winnipeg, Manitoba was built on a shareholder loan account that had drifted for three years with no supporting entries. The year-end had taken 9 weeks each of the last three years.
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 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 9 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.
