6 worked Receipt Reconstruction 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 receipt reconstruction work, not a specific client's file.
Case Study 1 · Missed incentive claimed
$67,000 Credit Claim Filed And Accepted Without Adjustment — Owner-Operated Trades Business, Lethbridge
Client: An owner-operated trades business · Where: Lethbridge, Alberta · Engagement: 3 weeks, fixed fee
Claim value$67,000
AcceptedWithout adjustment
RepeatableAnnually
The situation — An owner-operated trades business, Lethbridge, Alberta
An owner-operated trades business in Lethbridge, Alberta assumed the credits did not apply to a business its size. Input tax credits claimed on receipts that had already been claimed once meant they had applied all along.
What we did for An owner-operated trades business, Lethbridge, Alberta
We identified the qualifying activity and built the documentation to support it. Then 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.
The result — An owner-operated trades business, Lethbridge, Alberta
$67,000 recovered. Because the eligibility analysis is on file, the same claim can be repeated each year with a fraction of the effort.
Case Study 2 · Structure rebuilt
Reorganisation Completed Tax-Deferred, $40,000 Saved Each Year — Home-Renovation Contractor, Windsor
The situation — A home-renovation contractor, Windsor, Ontario
A home-renovation contractor in Windsor, Ontario had outgrown the structure it started with. A receivables list that included invoices collected eleven months earlier was the immediate problem. The longer-term one was that the structure blocked the next step.
What we did for A home-renovation contractor, Windsor, Ontario
We mapped the current structure and modelled the target. Then we cleared the payroll and sales tax clearing accounts every month and tied each remittance to the liability it settled. The tax-deferred elections were filed on time and the supporting valuations documented.
The result — A home-renovation contractor, Windsor, Ontario
The reorganisation completed without triggering tax, and the new structure saves approximately $40,000 a year while removing the exposure the old one carried.
Case Study 3 · Records and systems rebuilt
Month-End Close Cut From 12 Weeks To 4 Days — Mobile Pet-Grooming Company, Brampton
Client: A mobile pet-grooming company · Where: Brampton, Ontario · Engagement: 9 weeks, fixed fee
Close time before12 weeks
Close time after4 days
Year-endReview, not rebuild
The situation — A mobile pet-grooming company, Brampton, Ontario
The accounting file at a mobile pet-grooming company in Brampton, Ontario had a weak foundation. It was built on three years of returns filed off numbers nobody could trace back to a bank statement. The year-end had taken 12 weeks each of the last three years.
What we did for A mobile pet-grooming company, Brampton, Ontario
We set up a documented chart of accounts, a receipt-capture workflow and a monthly reconciliation that closes within ten days of month-end. We also moved the reconciliations into the monthly cycle, so the year-end stopped being a rebuild.
The result — A mobile pet-grooming company, Brampton, Ontario
The file reconciles. Month-end closes in 4 days instead of 12 weeks, and the year-end is a review rather than a reconstruction.
Case Study 4 · Scaling without breaking
Growth Handled Without A Missed Filing, $113,000 Freed — Dental Hygiene Clinic, Surrey
Client: A dental hygiene clinic · Where: Surrey, British Columbia · Engagement: 6 weeks, fixed fee
Cash freed$113,000
Compliance failuresNone
ReportingMonthly
The situation — A dental hygiene clinic, Surrey, British Columbia
A dental hygiene clinic in Surrey, British Columbia was opening in a second province. That meant different filing obligations and a different payroll regime. A bookkeeping file where owner draws, payroll and supplier payments all landed in the same account already sat in the file.
What we did for A dental hygiene clinic, Surrey, British Columbia
We reconciled receivables and payables to source documents and wrote off the balances that were genuinely uncollectible, with support. 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 dental hygiene clinic, Surrey, British Columbia
Growth was absorbed without a compliance failure. $113,000 of cash was released, and the monthly reporting now flags a problem while it is still small.
Case Study 5 · Sale and succession
Share Sale Restructured, $195,000 Less Tax On Closing — Residential Cleaning Franchise, Mississauga
The situation — A residential cleaning franchise, Mississauga, Ontario
A residential cleaning franchise in Mississauga, Ontario was preparing to sell. Due diligence surfaced passive assets sitting inside the operating company, disqualifying the shares. That would have reduced the price or killed the deal outright.
What we did for A residential cleaning franchise, Mississauga, Ontario
We cleaned up the historical file. 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. Then we prepared the due-diligence package the buyer's advisers actually asked for.
The result — A residential cleaning franchise, Mississauga, Ontario
The deal closed at the agreed price. $195,000 of tax was saved against the structure originally proposed, with no post-closing adjustment.
Case Study 6 · Objection and relief
Notice Of Objection Allowed In Full, $42,000 Reversed — Multi-Processor Online Seller, Guelph
Client: An online seller reconciling three payment processors · Where: Guelph, Ontario · Engagement: 8 weeks, fixed fee
Amount reversed$42,000
ObjectionAllowed in full
Account balanceNil
The situation — An online seller reconciling three payment processors, Guelph, Ontario
An online seller reconciling three payment processors in Guelph, Ontario had been reassessed for $42,000. 19 days were left on the objection deadline. The reassessment rested on eighteen months of unreconciled transactions and a shoebox of receipts.
What we did for An online seller reconciling three payment processors, Guelph, Ontario
We filed the objection inside the deadline with a complete submission rather than a placeholder. Alongside it, 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.
The result — An online seller reconciling three payment processors, Guelph, Ontario
The appeals officer allowed the objection in full. $42,000 was reversed and the account returned to a nil balance.
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.
