6 worked Virtual 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 virtual accounting work, not a specific client's file.
Case Study 1 · Records and systems rebuilt
27 Months Reconciled And $11,000 Of Input Tax Recovered — Landscaping Company, Kelowna
Client: A growing landscaping company · Where: Kelowna, British Columbia · Engagement: 4 weeks, fixed fee
Months reconciled27
Input tax recovered$11,000
Close time7 days
The situation — A growing landscaping company, Kelowna, British Columbia
A growing landscaping company in Kelowna, British Columbia was carrying a shareholder loan account that had drifted for three years with no supporting entries. Nothing reconciled, and every filing started with 27 months of cleanup.
What we did for A growing landscaping company, Kelowna, British Columbia
We rebuilt from source rather than correcting on top of the existing file. We reconciled the inter-company accounts, papered the arrangement with a written agreement, and aligned both corporations’ year-ends, then set the routine that keeps it clean.
The result — A growing landscaping company, Kelowna, British Columbia
27 months reconciled to the bank. The close now takes 7 days, and $11,000 of previously unclaimable input tax was recovered in the process.
Case Study 2 · Deadline rescue
Filed On Time From A Standing Start, $51,000 Penalty Avoided — Family Wholesale Distributor, Lethbridge
Client: A family-owned wholesale distributor · Where: Lethbridge, Alberta · Engagement: 5 weeks, fixed fee
Penalty avoided$51,000
Turnaround5 weeks
FiledOn time
The situation — A family-owned wholesale distributor, Lethbridge, Alberta
A family-owned wholesale distributor in Lethbridge, Alberta came to us 5 weeks before its filing deadline with capital assets written off in full in the year of purchase, with no fixed-asset schedule behind the deduction. A late filing would have triggered a penalty of roughly $51,000 before interest.
What we did for A family-owned wholesale distributor, Lethbridge, Alberta
We worked backwards from the deadline. We moved accruals, prepaids and depreciation into a documented month-end checklist, so they stopped being year-end discoveries, prioritising the items that actually gated the filing and deferring everything that did not.
The result — A family-owned wholesale distributor, Lethbridge, Alberta
The return was filed on time and complete. The $51,000 penalty never arose, and the compliance calendar we set means the next deadline is scheduled rather than discovered.
Case Study 3 · Objection and relief
Notice Of Objection Allowed In Full, $13,000 Reversed — Off-Calendar Year-End Supplier, Calgary
Client: A supplier with an off-calendar fiscal year-end · Where: Calgary, Alberta · Engagement: 7 weeks, fixed fee
Amount reversed$13,000
ObjectionAllowed in full
Account balanceNil
The situation — A supplier with an off-calendar fiscal year-end, Calgary, Alberta
A supplier with an off-calendar fiscal year-end in Calgary, Alberta had been reassessed for $13,000 and had 14 days left on the objection deadline. The reassessment rested on a year-end moved informally, leaving twelve months of trading reported as though nothing had changed.
What we did for A supplier with an off-calendar fiscal year-end, Calgary, Alberta
We filed the objection inside the deadline with a complete submission rather than a placeholder, and built a fixed-asset continuity schedule from the purchase invoices and set the capital cost allowance claim class by class rather than claiming the maximum by default.
The result — A supplier with an off-calendar fiscal year-end, Calgary, Alberta
The appeals officer allowed the objection in full. $13,000 was reversed and the account returned to a nil balance.
Client: An owner-managed corporation preparing its first year-end · Where: Mississauga, Ontario · Engagement: 3 weeks, fixed fee
Annual saving$55,000
ReorganisationTax-neutral
StructureMatches operations
The situation — An owner-managed corporation preparing its first year-end, Mississauga, Ontario
An owner-managed corporation preparing its first year-end in Mississauga, Ontario was carrying a bank that refused to renew an operating line without compliant statements, and every option for fixing it ran through a reorganisation that had to be done without triggering tax.
What we did for An owner-managed corporation preparing its first year-end, Mississauga, Ontario
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 — An owner-managed corporation preparing its first year-end, Mississauga, Ontario
The structure now matches the business. Annual saving of $55,000, and the reorganisation itself was tax-neutral.
Case Study 5 · Backlog brought current
$77,000 Of Arbitrary Assessments Vacated After 4 Years — Machine-Shop Owner-Operator, Ottawa
The situation — A machine-shop owner-operator, Ottawa, Ontario
4 years of unfiled returns had turned into notional assessments at a machine-shop owner-operator in Ottawa, Ontario, with inter-company balances between two related corporations that had never been reconciled underneath. Collections had already started.
What we did for A machine-shop owner-operator, Ottawa, Ontario
We valued work in progress on one consistent basis and documented the method, so the comparative year could be relied on, then filed every outstanding year in chronological order so the CRA could vacate the notional assessments cleanly.
The result — A machine-shop owner-operator, Ottawa, Ontario
All 4 years were accepted as filed. $77,000 of arbitrarily assessed tax was vacated, collections action stopped, and the account is current for the first time in 4 years.
Case Study 6 · Sale and succession
Share Sale Restructured, $525,000 Less Tax On Closing — Fitness Studio Group, Hamilton
Client: A boutique fitness studio group · Where: Hamilton, Ontario · Engagement: 6 weeks, fixed fee
Tax saved on closing$525,000
PriceAs agreed
Post-closing adjustmentsNone
The situation — A boutique fitness studio group, Hamilton, Ontario
A boutique fitness studio group in Hamilton, Ontario was preparing to sell. Due diligence surfaced passive assets sitting inside the operating company, disqualifying the shares, which would have reduced the price or killed the deal outright.
What we did for A boutique fitness studio group, Hamilton, Ontario
We cleaned up the historical file, separated personal and corporate spending, cleared the shareholder loan through a documented salary and dividend mix, and restated the comparative year, and prepared the due-diligence package the buyer's advisers actually asked for.
The result — A boutique fitness studio group, Hamilton, Ontario
The deal closed at the agreed price. $525,000 of tax was saved against the structure originally proposed, with no post-closing adjustment.
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.
