6 worked Working Capital Management 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 working capital management work, not a specific client's file.
Case Study 1 · Objection and relief
Notice Of Objection Allowed In Full, $78,000 Reversed — Pre-Raise Technology Company, Barrie
Client: A technology company preparing to raise · Where: Barrie, Ontario · Engagement: 10 weeks, fixed fee
Amount reversed$78,000
ObjectionAllowed in full
Account balanceNil
The situation — A technology company preparing to raise, Barrie, Ontario
A technology company preparing to raise in Barrie, Ontario had been reassessed for $78,000. 17 days were left on the objection deadline. The reassessment rested on a covenant breach discovered only when the bank called.
What we did for A technology company preparing to raise, Barrie, Ontario
We filed the objection inside the deadline with a complete submission rather than a placeholder. Alongside it, we modelled the covenant ratios monthly and restructured the debt before the next test date rather than after it.
The result — A technology company preparing to raise, Barrie, Ontario
The appeals officer allowed the objection in full. $78,000 was reversed and the account returned to a nil balance.
Case Study 2 · CRA review defended
$99,000 Proposed Adjustment Withdrawn In Full — Owner Without a Forecast, Saskatoon
Client: An owner running the business without a cash-flow forecast · Where: Saskatoon, Saskatchewan · Engagement: 7 weeks, fixed fee
Adjustment withdrawn$99,000
File closed in7 weeks
Penalties assessedNone
The situation — An owner running the business without a cash-flow forecast, Saskatoon, Saskatchewan
An owner running the business without a cash-flow forecast in Saskatoon, Saskatchewan received a proposal letter opening a review of working capital management. The CRA had identified pricing set by feel, with no visibility into margin by service line. It proposed an adjustment of $99,000, with 30 days to respond.
What we did for An owner running the business without a cash-flow forecast, Saskatoon, Saskatchewan
We treated the response as an evidence exercise rather than an argument. We separated customer prepayments from earned revenue in the reporting, so the cash position and the tax position were visible at the same time. We then indexed every supporting document against the specific line the auditor had questioned.
The result — An owner running the business without a cash-flow forecast, Saskatoon, Saskatchewan
The proposed adjustment was withdrawn in full — all $99,000 of it. The file closed in 7 weeks with no change to the assessed amounts and no penalty.
Case Study 3 · Deadline rescue
Filed On Time From A Standing Start, $35,000 Penalty Avoided — Corporation Facing Covenant Test, Toronto
Client: A corporation approaching a covenant test date · Where: Toronto, Ontario · Engagement: 4 weeks, fixed fee
Penalty avoided$35,000
Turnaround4 weeks
FiledOn time
The situation — A corporation approaching a covenant test date, Toronto, Ontario
A corporation approaching a covenant test date in Toronto, Ontario came to us 4 weeks before its filing deadline. The file came with revenue up 40% year over year and a bank balance that kept falling. A late filing would have triggered a penalty of roughly $35,000 before interest.
What we did for A corporation approaching a covenant test date, Toronto, Ontario
We worked backwards from the deadline. We added the balance sheet and a cash view to the monthly package, so the owner saw working capital move rather than only profit. We prioritised the items that actually gated the filing and deferred everything that did not.
The result — A corporation approaching a covenant test date, Toronto, Ontario
The return was filed on time and complete. The $35,000 penalty never arose, and the compliance calendar we set means the next deadline is scheduled rather than discovered.
Case Study 4 · Missed incentive claimed
$16,000 In Credits Claimed That Prior Filings Had Missed — Mid-Sized Services Firm, Regina
Client: A mid-sized professional services firm · Where: Regina, Saskatchewan · Engagement: 8 weeks, fixed fee
Credits claimed$16,000
Years adjusted4
Review outcomeNo adjustment
The situation — A mid-sized professional services firm, Regina, Saskatchewan
A mid-sized professional services firm in Regina, Saskatchewan had been filing for 4 years. In that time, the incentives its activity qualified for were never claimed. Behind that sat an owner making hiring decisions on last quarter’s bank balance.
What we did for A mid-sized professional services firm, Regina, Saskatchewan
We tested each activity against the eligibility criteria rather than the description on the invoice. Then we built a rolling thirteen-week cash-flow model, tightened collections, and renegotiated supplier terms so the growth stopped consuming the bank balance.
The result — A mid-sized professional services firm, Regina, Saskatchewan
$16,000 in credits claimed, with the open prior years adjusted as well. The claim passed review without adjustment.
Case Study 5 · Records and systems rebuilt
Month-End Close Cut From 9 Weeks To 7 Days — Fast-Growing E-Commerce Brand, Edmonton
Client: A fast-growing e-commerce brand · Where: Edmonton, Alberta · Engagement: 6 weeks, fixed fee
Close time before9 weeks
Close time after7 days
Year-endReview, not rebuild
The situation — A fast-growing e-commerce brand, Edmonton, Alberta
The accounting file at a fast-growing e-commerce brand in Edmonton, Alberta had a weak foundation. It was built on a borrowing drawn for an unrelated personal purchase with the interest claimed against the business. The year-end had taken 9 weeks each of the last three years.
What we did for A fast-growing e-commerce brand, Edmonton, Alberta
We produced a board-ready monthly package — cash, margin, pipeline and covenant headroom — that replaced a spreadsheet nobody trusted. We also moved the reconciliations into the monthly cycle, so the year-end stopped being a rebuild.
The result — A fast-growing e-commerce brand, Edmonton, Alberta
The file reconciles. Month-end closes in 7 days instead of 9 weeks, and the year-end is a review rather than a reconstruction.
Case Study 6 · Sale and succession
Intergenerational Transfer Completed With $890,000 Deferred — Contractor Scaling Bids, Windsor
Client: A construction company bidding larger contracts · Where: Windsor, Ontario · Engagement: 6 weeks, fixed fee
Tax deferred$890,000
TransferCompleted
RecordsReview-ready
The situation — A construction company bidding larger contracts, Windsor, Ontario
A generational transfer at a construction company bidding larger contracts in Windsor, Ontario had been discussed for years without a plan. A minute book with no resolutions behind a decade of dividends meant the transfer as contemplated would have been fully taxable.
What we did for A construction company bidding larger contracts, Windsor, Ontario
We traced each borrowing to what it actually funded and kept the interest deduction on the portion used to earn business income. We sequenced the steps so each one was complete and documented before the next depended on it.
The result — A construction company bidding larger contracts, Windsor, Ontario
$890,000 of tax was deferred through the transfer, and the successor generation took over a corporation whose records stood up to review.
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.
