6 worked Prior-Year Bookkeeping Cleanup 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 prior-year bookkeeping cleanup work, not a specific client's file.
Case Study 1 · Structure rebuilt
Corporate Structure Rebuilt For $29,500 Of Annual Savings — Specialty Coffee Roaster, Burnaby
Client: A specialty coffee roaster · Where: Burnaby, British Columbia · Engagement: 9 weeks, fixed fee
Saving per year$29,500
DocumentationComplete
Transfer basisRollover
The situation — A specialty coffee roaster, Burnaby, British Columbia
The structure at a specialty coffee roaster in Burnaby, British Columbia dated from years earlier. It had been set up for a business that no longer existed. A bookkeeping file where owner draws, payroll and supplier payments all landed in the same account had become expensive.
What we did for A specialty coffee roaster, Burnaby, British Columbia
We separated the owner’s personal spending out of the corporate accounts and cleared the resulting shareholder loan properly. The reorganisation used the rollover provisions rather than a taxable transfer, so no tax fell due on the restructuring itself.
The result — A specialty coffee roaster, Burnaby, British Columbia
$29,500 of annual saving, achieved on a tax-deferred basis. The minute book, elections and valuations are all in the file.
Case Study 2 · Deadline rescue
$95,000 Late-Filing Penalty Cancelled On Relief Application — Equipment Rental Yard, Regina
The situation — An equipment rental yard, Regina, Saskatchewan
An equipment rental yard in Regina, Saskatchewan had already missed one deadline and was about to miss a second. Behind it sat input tax credits claimed on receipts that had already been claimed once. A penalty of $95,000 was accruing.
What we did for An equipment rental yard, Regina, Saskatchewan
We split the work into what had to happen before the deadline and what could follow it. Then we rebuilt sales from the processor settlement reports so gross sales, fees and refunds each landed in an account of their own.
The result — An equipment rental yard, Regina, Saskatchewan
The outstanding return was accepted as filed, and the taxpayer relief application cancelled $95,000 of the penalty already assessed on the earlier year.
Case Study 3 · Cash and remittance control
$155,000 Of Working Capital Freed From The Tax Cycle — Small Law Practice, Red Deer
Client: A small law practice · Where: Red Deer, Alberta · Engagement: 4 weeks, fixed fee
Working capital freed$155,000
On-time remittancesEvery period since
Forecast horizon13 weeks
The situation — A small law practice, Red Deer, Alberta
A small law practice in Red Deer, Alberta was profitable on paper and short of cash every month. Eighteen months of unreconciled transactions and a shoebox of receipts explained most of the gap.
What we did for A small law practice, Red Deer, Alberta
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. We also built a thirteen-week cash view so tax payments stopped competing with payroll for the same dollars.
The result — A small law practice, Red Deer, Alberta
$155,000 was released back into working capital. Remittances have been on time every period since, and the forecast shows the tax outflow before it lands.
Case Study 4 · Scaling without breaking
Growth Handled Without A Missed Filing, $120,000 Freed — Subscription Box Retailer, Windsor
The situation — A subscription box retailer, Windsor, Ontario
A subscription box retailer in Windsor, Ontario was opening in a second province. That meant different filing obligations and a different payroll regime. A payroll clearing account that had never been brought to zero, carrying a balance nobody could explain already sat in the file.
What we did for A subscription box retailer, Windsor, Ontario
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. 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 subscription box retailer, Windsor, Ontario
Growth was absorbed without a compliance failure. $120,000 of cash was released, and the monthly reporting now flags a problem while it is still small.
Case Study 5 · Missed incentive claimed
Incentive Review Recovered $113,000 Across 5 Open Years — Two-Location Cafe, Barrie
The situation — A two-location cafe, Barrie, Ontario
An incentive review at a two-location cafe in Barrie, Ontario started from a simple question: what has never been claimed? The answer ran to 5 years. It was driven by eighteen months of unreconciled transactions and a shoebox of receipts.
What we did for A two-location cafe, Barrie, Ontario
We reconciled receivables and payables to source documents and wrote off the balances that were genuinely uncollectible, with support. We documented eligibility to the standard a reviewer would apply rather than the standard a claim form requires.
The result — A two-location cafe, Barrie, Ontario
The credits produced $113,000 across the open years. The tracking now in place means the following year's claim is documented as the work happens rather than reconstructed afterwards.
Case Study 6 · Backlog brought current
$134,000 Of Arbitrary Assessments Vacated After 6 Years — Courier Subcontractor, Guelph
Client: A courier subcontractor paid by the drop · Where: Guelph, Ontario · Engagement: 3 weeks, fixed fee
Arbitrary tax vacated$134,000
Years brought current6
Account statusCurrent
The situation — A courier subcontractor paid by the drop, Guelph, Ontario
6 years of unfiled returns had turned into notional assessments at a courier subcontractor paid by the drop in Guelph, Ontario. Underneath lay sales recorded from bank deposits, so processor fees, chargebacks and refunds appeared nowhere in the ledger. Collections had already started.
What we did for A courier subcontractor paid by the drop, Guelph, Ontario
We recoded the meals and entertainment accounts to the statutory limit and reversed the over-claimed input tax credits before the next return went in. We then filed every outstanding year in chronological order so the CRA could vacate the notional assessments cleanly.
The result — A courier subcontractor paid by the drop, Guelph, Ontario
All 6 years were accepted as filed. $134,000 of arbitrarily assessed tax was vacated, collections action stopped, and the account is current for the first time in 6 years.
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.
