6 worked Sales Reconciliation 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 sales reconciliation work, not a specific client's file.
Case Study 1 · Cash and remittance control
Instalments Rebased, $120,000 Of Cash Returned To The Business — Subscription Box Retailer, Vancouver
Client: A subscription box retailer · Where: Vancouver, British Columbia · Engagement: 8 weeks, fixed fee
Cash returned$120,000
Instalment basisCurrent year
ReviewedQuarterly
The situation — A subscription box retailer, Vancouver, British Columbia
A subscription box retailer in Vancouver, British Columbia was paying instalments calculated on a prior year. That year no longer reflected the business. Eighteen months of unreconciled transactions and a shoebox of receipts was tying up $120,000 of cash.
What we did for A subscription box retailer, Vancouver, British Columbia
We rebased the instalments on the current-year estimate rather than the prior-year default. Alongside that, 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 — A subscription box retailer, Vancouver, British Columbia
$120,000 of cash stayed in the business, the penalty cycle ended, and the instalment position is reviewed each quarter against actual results.
Case Study 2 · Scaling without breaking
Growth Handled Without A Missed Filing, $126,000 Freed — Wedding Photography Studio, Lethbridge
Client: A wedding photography studio · Where: Lethbridge, Alberta · Engagement: 9 weeks, fixed fee
Cash freed$126,000
Compliance failuresNone
ReportingMonthly
The situation — A wedding photography studio, Lethbridge, Alberta
A wedding photography studio in Lethbridge, Alberta was opening in a second province. That meant different filing obligations and a different payroll regime. Input tax credits claimed on receipts that had already been claimed once already sat in the file.
What we did for A wedding photography studio, Lethbridge, Alberta
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 wedding photography studio, Lethbridge, Alberta
Growth was absorbed without a compliance failure. $126,000 of cash was released, and the monthly reporting now flags a problem while it is still small.
Case Study 3 · Missed incentive claimed
$94,000 In Credits Claimed That Prior Filings Had Missed — Courier Subcontractor, Barrie
Client: A courier subcontractor paid by the drop · Where: Barrie, Ontario · Engagement: 7 weeks, fixed fee
Credits claimed$94,000
Years adjusted4
Review outcomeNo adjustment
The situation — A courier subcontractor paid by the drop, Barrie, Ontario
A courier subcontractor paid by the drop in Barrie, Ontario had been filing for 4 years. In that time, the incentives its activity qualified for were never claimed. Behind that sat meals and entertainment coded at full cost with the input tax credit claimed on the whole amount.
What we did for A courier subcontractor paid by the drop, Barrie, Ontario
We tested each activity against the eligibility criteria rather than the description on the invoice. Then 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.
The result — A courier subcontractor paid by the drop, Barrie, Ontario
$94,000 in credits claimed, with the open prior years adjusted as well. The claim passed review without adjustment.
Case Study 4 · Backlog brought current
7 Years Filed, $20,500 Removed From The Assessed Balance — Mobile Pet-Grooming Company, Victoria
Client: A mobile pet-grooming company · Where: Victoria, British Columbia · Engagement: 4 weeks, fixed fee
Years filed7
Assessed balance removed$20,500
CollectionsStopped
The situation — A mobile pet-grooming company, Victoria, British Columbia
A mobile pet-grooming company in Victoria, British Columbia had not filed for 7 years. The CRA had issued arbitrary assessments. The business was carrying three years of returns filed off numbers nobody could trace back to a bank statement. That came on top of a growing interest balance.
What we did for A mobile pet-grooming company, Victoria, British Columbia
We started with the oldest year and worked forward so each year's closing balances fed the next. 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 filed the years in sequence rather than all at once.
The result — A mobile pet-grooming company, Victoria, British Columbia
Every year is now filed and assessed on actual figures. The notional assessments were vacated and $20,500 of the estimated balance came off, with a payment arrangement covering the rest.
Case Study 5 · Objection and relief
$70,000 Of Penalties And Interest Cancelled On Relief — Specialty Coffee Roaster, Regina
The situation — A specialty coffee roaster, Regina, Saskatchewan
An assessment of $70,000 landed at a specialty coffee roaster in Regina, Saskatchewan following a desk review. It turned on a receivables list that included invoices collected eleven months earlier. The auditor had not seen the records behind it.
What we did for A specialty coffee roaster, Regina, Saskatchewan
We rebuilt sales from the processor settlement reports so gross sales, fees and refunds each landed in an account of their own. We then set out the legislative basis for the position alongside the documents supporting it.
The result — A specialty coffee roaster, Regina, Saskatchewan
$70,000 of penalties and interest was cancelled under the taxpayer relief provisions, and the underlying assessment was adjusted to match the filed position.
Case Study 6 · Records and systems rebuilt
Books Rebuilt From Source, $18,500 In Unclaimed Input Tax Found — Multi-Processor Online Seller, London
Client: An online seller reconciling three payment processors · Where: London, Ontario · Engagement: 9 weeks, fixed fee
Unclaimed tax found$18,500
Records rebuilt31 months
ProcessDocumented
The situation — An online seller reconciling three payment processors, London, Ontario
An online seller reconciling three payment processors in London, Ontario could not answer basic questions about its own numbers. Sales recorded from bank deposits, so processor fees, chargebacks and refunds appeared nowhere in the ledger sat between the bank statements and the ledger.
What we did for An online seller reconciling three payment processors, London, Ontario
We cleared the payroll and sales tax clearing accounts every month and tied each remittance to the liability it settled. We then documented the process so the work does not depend on any one person remembering how it was done.
The result — An online seller reconciling three payment processors, London, Ontario
Records rebuilt and reconciled, $18,500 recovered in input tax credits that the old file could not support, and a documented monthly process now in place.
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.
