6 worked Year-End Bookkeeping Cleanup 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 year-end bookkeeping cleanup work, not a specific client's file.
Case Study 1 · Sale and succession
Share Sale Restructured, $195,000 Less Tax On Closing — Mobile Pet-Grooming Company, Hamilton
Client: A mobile pet-grooming company · Where: Hamilton, Ontario · Engagement: 10 weeks, fixed fee
Tax saved on closing$195,000
PriceAs agreed
Post-closing adjustmentsNone
The situation — A mobile pet-grooming company, Hamilton, Ontario
A mobile pet-grooming company in Hamilton, Ontario was preparing to sell. Due diligence surfaced retained cash well above what the business needed to operate. That would have reduced the price or killed the deal outright.
What we did for A mobile pet-grooming company, Hamilton, Ontario
We cleaned up the historical file. 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. Then we prepared the due-diligence package the buyer's advisers actually asked for.
The result — A mobile pet-grooming company, Hamilton, 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 2 · Objection and relief
Notice Of Objection Allowed In Full, $113,000 Reversed — Two-Location Cafe, Calgary
Client: A two-location cafe · Where: Calgary, Alberta · Engagement: 11 weeks, fixed fee
Amount reversed$113,000
ObjectionAllowed in full
Account balanceNil
The situation — A two-location cafe, Calgary, Alberta
A two-location cafe in Calgary, Alberta had been reassessed for $113,000. 10 days were left on the objection deadline. The reassessment rested on a payroll clearing account that had never been brought to zero, carrying a balance nobody could explain.
What we did for A two-location cafe, Calgary, Alberta
We filed the objection inside the deadline with a complete submission rather than a placeholder. Alongside it, we set up a documented chart of accounts, a receipt-capture workflow and a monthly reconciliation that closes within ten days of month-end.
The result — A two-location cafe, Calgary, Alberta
The appeals officer allowed the objection in full. $113,000 was reversed and the account returned to a nil balance.
Client: A dental hygiene clinic · Where: Moncton, New Brunswick · Engagement: 6 weeks, fixed fee
Overpayment refunded$35,000
Late remittances sinceZero
ScheduleAutomated
The situation — A dental hygiene clinic, Moncton, New Brunswick
Remittances at a dental hygiene clinic in Moncton, New Brunswick were consistently late by a few days. That was enough to trigger penalties every quarter. Behind it sat input tax credits claimed on receipts that had already been claimed once.
What we did for A dental hygiene clinic, Moncton, New Brunswick
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 moved the remittance dates into a scheduled process rather than a monthly decision.
The result — A dental hygiene clinic, Moncton, New Brunswick
Penalties stopped from the following remittance onwards, and $35,000 of overpaid instalments was refunded.
Case Study 4 · CRA review defended
$70,000 Proposed Adjustment Withdrawn In Full — Specialty Coffee Roaster, Brampton
The situation — A specialty coffee roaster, Brampton, Ontario
A specialty coffee roaster in Brampton, Ontario received a proposal letter opening a review of year-end bookkeeping cleanup. The CRA had identified three years of returns filed off numbers nobody could trace back to a bank statement. It proposed an adjustment of $70,000, with 30 days to respond.
What we did for A specialty coffee roaster, Brampton, Ontario
We treated the response as an evidence exercise rather than an argument. We separated the owner’s personal spending out of the corporate accounts and cleared the resulting shareholder loan properly. We then indexed every supporting document against the specific line the auditor had questioned.
The result — A specialty coffee roaster, Brampton, Ontario
The proposed adjustment was withdrawn in full — all $70,000 of it. The file closed in 10 weeks with no change to the assessed amounts and no penalty.
Case Study 5 · Backlog brought current
$112,000 Of Arbitrary Assessments Vacated After 3 Years — Residential Cleaning Franchise, Surrey
Client: A residential cleaning franchise · Where: Surrey, British Columbia · Engagement: 6 weeks, fixed fee
Arbitrary tax vacated$112,000
Years brought current3
Account statusCurrent
The situation — A residential cleaning franchise, Surrey, British Columbia
3 years of unfiled returns had turned into notional assessments at a residential cleaning franchise in Surrey, British Columbia. Underneath lay meals and entertainment coded at full cost with the input tax credit claimed on the whole amount. Collections had already started.
What we did for A residential cleaning franchise, Surrey, British Columbia
We cleared the payroll and sales tax clearing accounts every month and tied each remittance to the liability it settled. We then filed every outstanding year in chronological order so the CRA could vacate the notional assessments cleanly.
The result — A residential cleaning franchise, Surrey, British Columbia
All 3 years were accepted as filed. $112,000 of arbitrarily assessed tax was vacated, collections action stopped, and the account is current for the first time in 3 years.
Case Study 6 · Deadline rescue
5-Week Turnaround Beat The Deadline And Saved $116,000 — Subscription Box Retailer, Vancouver
Client: A subscription box retailer · Where: Vancouver, British Columbia · Engagement: 5 weeks, fixed fee
Late-filing penalty avoided$116,000
Filed with20 days to spare
Next yearPapers ready
The situation — A subscription box retailer, Vancouver, British Columbia
A subscription box retailer in Vancouver, British Columbia was weeks away from the deadline for year-end bookkeeping cleanup. Behind that sat eighteen months of unreconciled transactions and a shoebox of receipts. The exposure if the date slipped was around $116,000.
What we did for A subscription box retailer, Vancouver, British Columbia
We reconciled receivables and payables to source documents and wrote off the balances that were genuinely uncollectible, with support. The filing went in complete rather than provisional, so there was no amended return to follow.
The result — A subscription box retailer, Vancouver, British Columbia
Filed with 20 days to spare. $116,000 in late-filing penalties avoided, and the working papers are ready for the following year.
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.
