6 worked Project Accounting 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 project accounting work, not a specific client's file.
Case Study 1 · CRA review defended
$72,000 Reassessment Reduced To Nil On Review — Fitness Studio Group, Hamilton
Client: A boutique fitness studio group · Where: Hamilton, Ontario · Engagement: 8 weeks, fixed fee
Reassessment reduced toNil
Tax protected$72,000
Prior filingsUndisturbed
The situation — A boutique fitness studio group, Hamilton, Ontario
A review notice arrived at a boutique fitness studio group in Hamilton, Ontario covering project accounting for two tax years. The auditor's working position was an adjustment of $72,000, driven by capital assets written off in full in the year of purchase, with no fixed-asset schedule behind the deduction.
What we did for A boutique fitness studio group, Hamilton, Ontario
Rather than negotiate, we rebuilt the record. We valued work in progress on one consistent basis and documented the method, so the comparative year could be relied on and submitted a point-by-point response that answered each proposed adjustment with the document behind it.
The result — A boutique fitness studio group, Hamilton, Ontario
The auditor accepted the documented position and closed the review without adjustment, protecting $72,000 and leaving the prior filings undisturbed.
Case Study 2 · Objection and relief
Desk-Review Assessment Of $104,000 Vacated — Independent Pharmacy, Mississauga
The situation — An independent pharmacy, Mississauga, Ontario
An independent pharmacy in Mississauga, Ontario was carrying $104,000 of penalties and interest arising from a shareholder loan account that had drifted for three years with no supporting entries, much of it accumulated during a period the CRA itself had delayed.
What we did for An independent pharmacy, Mississauga, Ontario
We reconciled the general ledger to the GIFI schedules filed for each open year and corrected the two years where they disagreed and framed the relief application on the specific grounds the CRA guidelines recognise rather than on general hardship.
The result — An independent pharmacy, Mississauga, Ontario
The assessment was vacated. $104,000 came off the account, and the documentation now on file makes the same position straightforward to defend next time.
Case Study 3 · Scaling without breaking
Growth Handled Without A Missed Filing, $142,000 Freed — Family Wholesale Distributor, Lethbridge
Client: A family-owned wholesale distributor · Where: Lethbridge, Alberta · Engagement: 10 weeks, fixed fee
Cash freed$142,000
Compliance failuresNone
ReportingMonthly
The situation — A family-owned wholesale distributor, Lethbridge, Alberta
A family-owned wholesale distributor in Lethbridge, Alberta was opening in a second province — different filing obligations, a different payroll regime, and a bank that refused to renew an operating line without compliant statements already in the file.
What we did for A family-owned wholesale distributor, Lethbridge, Alberta
We moved accruals, prepaids and depreciation into a documented month-end checklist, so they stopped being year-end discoveries and put monthly reporting in place so the owner could see the cash effect of growth while there was still time to act on it.
The result — A family-owned wholesale distributor, Lethbridge, Alberta
Growth was absorbed without a compliance failure. $142,000 of cash was released, and the monthly reporting now flags a problem while it is still small.
Client: A professional practice that closes its books quarterly · Where: Moncton, New Brunswick · Engagement: 10 weeks, fixed fee
Annual saving$49,000
ReorganisationTax-neutral
StructureMatches operations
The situation — A professional practice that closes its books quarterly, Moncton, New Brunswick
A professional practice that closes its books quarterly in Moncton, New Brunswick was carrying a year-end moved informally, leaving twelve months of trading reported as though nothing had changed, and every option for fixing it ran through a reorganisation that had to be done without triggering tax.
What we did for A professional practice that closes its books quarterly, Moncton, New Brunswick
Working with the client's lawyer, we 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 and prepared the elections, resolutions and valuations the structure needed to stand up.
The result — A professional practice that closes its books quarterly, Moncton, New Brunswick
The structure now matches the business. Annual saving of $49,000, and the reorganisation itself was tax-neutral.
Case Study 5 · Planning that cut the bill
$16,500 Saved By Correcting What Prior Filings Had Missed — Machine-Shop Owner-Operator, Kitchener
The situation — A machine-shop owner-operator, Kitchener, Ontario
A machine-shop owner-operator in Kitchener, Ontario asked for a second opinion on project accounting after three years of rising tax. The review found work in progress carried at billing value one year and at cost the next, so neither year was comparable.
What we did for A machine-shop owner-operator, Kitchener, Ontario
We built the comparison first — current structure against two alternatives — and then separated personal and corporate spending, cleared the shareholder loan through a documented salary and dividend mix, and restated the comparative year.
The result — A machine-shop owner-operator, Kitchener, Ontario
First-year saving of $16,500, with the same benefit recurring. Every position taken is documented and supported in the file.
Case Study 6 · Backlog brought current
Collections Halted And $120,000 Cut From A 6-Year Backlog — Regional Courier Operator, London
The situation — A regional courier operator, London, Ontario
By the time a regional courier operator in London, Ontario called, 6 years were outstanding and the CRA had assessed on estimates. Underneath it sat inter-company balances between two related corporations that had never been reconciled.
What we did for A regional courier operator, London, Ontario
We reconstructed the records year by year and 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. Each filing replaced an arbitrary assessment with a real one.
The result — A regional courier operator, London, Ontario
The account is current. Filing on real numbers rather than CRA estimates reduced the balance by $120,000, and a relief application addressed part of the accumulated interest.
Reviewed for the 2025 tax year by Udit Gupta, Founder and Tax Accountant. 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.
