6 worked Transaction Categorization 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 transaction categorization work, not a specific client's file.
Case Study 1 · Cash and remittance control
Remittance Schedule Corrected, $87,000 Refunded — Two-Location Cafe, Regina
The situation — A two-location cafe, Regina, Saskatchewan
Remittances at a two-location cafe in Regina, Saskatchewan were consistently late by a few days, which was enough to trigger penalties every quarter. Behind it sat a receivables list that included invoices collected eleven months earlier.
What we did for A two-location cafe, Regina, Saskatchewan
We rebuilt sales from the processor settlement reports so gross sales, fees and refunds each landed in an account of their own, then moved the remittance dates into a scheduled process rather than a monthly decision.
The result — A two-location cafe, Regina, Saskatchewan
Penalties stopped from the following remittance onwards, and $87,000 of overpaid instalments was refunded.
Case Study 2 · Planning that cut the bill
$14,000 Cut From The Annual Tax Bill — Home-Renovation Contractor, Halifax
Client: A home-renovation contractor · Where: Halifax, Nova Scotia · Engagement: 11 weeks, fixed fee
First-year saving$14,000
RepeatsAnnually
Filing positionUnchanged in risk
The situation — A home-renovation contractor, Halifax, Nova Scotia
A home-renovation contractor in Halifax, Nova Scotia was compliant but paying more than it needed to. The prior year had been filed correctly and still left a bookkeeping file where owner draws, payroll and supplier payments all landed in the same account on the table.
What we did for A home-renovation contractor, Halifax, Nova Scotia
We modelled the current position against the alternatives before changing anything, then 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 — A home-renovation contractor, Halifax, Nova Scotia
The change saved $14,000 in the first year and repeats annually. Nothing about the filings became more aggressive; the position is simply the one the rules already allowed.
Case Study 3 · Scaling without breaking
Scaled To 81 Staff With $128,000 Of Working Capital Freed — Small Law Practice, Edmonton
Client: A small law practice · Where: Edmonton, Alberta · Engagement: 11 weeks, fixed fee
Headcount reached81
Working capital freed$128,000
Missed deadlinesZero
The situation — A small law practice, Edmonton, Alberta
A small law practice in Edmonton, Alberta was growing fast — headcount to 81 in eighteen months — and the back office had not kept up. Eighteen months of unreconciled transactions and a shoebox of receipts was the first thing to break.
What we did for A small law practice, Edmonton, 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, and built the compliance calendar for the size the business was becoming rather than the size it had been.
The result — A small law practice, Edmonton, Alberta
The business reached 81 staff with no missed remittance and no late filing. $128,000 of working capital was freed in the process.
Client: An online seller reconciling three payment processors · Where: Lethbridge, Alberta · Engagement: 9 weeks, fixed fee
Proposed tax cleared$47,000
Review duration9 weeks
OutcomeNo change
The situation — An online seller reconciling three payment processors, Lethbridge, Alberta
An online seller reconciling three payment processors in Lethbridge, Alberta was selected for review after meals and entertainment coded at full cost with the input tax credit claimed on the whole amount showed up in the CRA's automated matching. The proposed adjustment on transaction categorization came to $47,000.
What we did for An online seller reconciling three payment processors, Lethbridge, Alberta
We cleared the payroll and sales tax clearing accounts every month and tied each remittance to the liability it settled. Every figure in the response traced to a source record the auditor could verify without asking a second question.
The result — An online seller reconciling three payment processors, Lethbridge, Alberta
The review closed with no change. $47,000 of proposed tax came off the table, and the documentation now in place makes the next review a short one.
Case Study 5 · Missed incentive claimed
Incentive Review Recovered $52,000 Across 4 Open Years — Specialty Coffee Roaster, Windsor
The situation — A specialty coffee roaster, Windsor, Ontario
An incentive review at a specialty coffee roaster in Windsor, Ontario started from a simple question: what has never been claimed? The answer ran to 4 years, driven by a receivables list that included invoices collected eleven months earlier.
What we did for A specialty coffee roaster, Windsor, Ontario
We rebuilt the ledger from bank and card statements, matched every receipt to a transaction, and removed duplicated input tax credits before they became a review, documenting eligibility to the standard a reviewer would apply rather than the standard a claim form requires.
The result — A specialty coffee roaster, Windsor, Ontario
The credits produced $52,000 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 6 · Sale and succession
$220,000 Sheltered By The Lifetime Capital Gains Exemption — Mobile Pet-Grooming Company, Brampton
Client: A mobile pet-grooming company · Where: Brampton, Ontario · Engagement: 8 weeks, fixed fee
Gain sheltered$220,000
ClosingOn schedule
Share qualificationMet
The situation — A mobile pet-grooming company, Brampton, Ontario
A mobile pet-grooming company in Brampton, Ontario had an offer on the table and 13 months to close. The shares did not qualify for the capital gains exemption, and retained cash well above what the business needed to operate was part of the reason.
What we did for A mobile pet-grooming company, Brampton, Ontario
We purified the corporation so the shares met the qualifying tests, then set up a documented chart of accounts, a receipt-capture workflow and a monthly reconciliation that closes within ten days of month-end well ahead of the closing date.
The result — A mobile pet-grooming company, Brampton, Ontario
The sale closed on schedule with $220,000 sheltered by the lifetime capital gains exemption across the shareholders.
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.
