6 worked Year-End Bookkeeping 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 work, not a specific client's file.
Case Study 1 · Objection and relief
$53,000 Of Penalties And Interest Cancelled On Relief — Subscription Box Retailer, Surrey
Client: A subscription box retailer · Where: Surrey, British Columbia · Engagement: 9 weeks, fixed fee
Penalties and interest cancelled$53,000
Relief groundsAccepted
AssessmentAdjusted to filed position
The situation — A subscription box retailer, Surrey, British Columbia
An assessment of $53,000 landed at a subscription box retailer in Surrey, British Columbia following a desk review. It turned on meals and entertainment coded at full cost with the input tax credit claimed on the whole amount. The auditor had not seen the records behind it.
What we did for A subscription box retailer, Surrey, British Columbia
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. We then set out the legislative basis for the position alongside the documents supporting it.
The result — A subscription box retailer, Surrey, British Columbia
$53,000 of penalties and interest was cancelled under the taxpayer relief provisions, and the underlying assessment was adjusted to match the filed position.
Case Study 2 · Records and systems rebuilt
Books Rebuilt From Source, $11,500 In Unclaimed Input Tax Found — Mobile Pet-Grooming Company, Hamilton
Client: A mobile pet-grooming company · Where: Hamilton, Ontario · Engagement: 6 weeks, fixed fee
Unclaimed tax found$11,500
Records rebuilt17 months
ProcessDocumented
The situation — A mobile pet-grooming company, Hamilton, Ontario
A mobile pet-grooming company in Hamilton, Ontario could not answer basic questions about its own numbers. A payroll clearing account that had never been brought to zero, carrying a balance nobody could explain sat between the bank statements and the ledger.
What we did for A mobile pet-grooming company, Hamilton, Ontario
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 then documented the process so the work does not depend on any one person remembering how it was done.
The result — A mobile pet-grooming company, Hamilton, Ontario
Records rebuilt and reconciled, $11,500 recovered in input tax credits that the old file could not support, and a documented monthly process now in place.
Case Study 3 · Planning that cut the bill
Remuneration Review Saved $49,000 Across Corporate And Personal Returns — Small Law Practice, Winnipeg
Client: A small law practice · Where: Winnipeg, Manitoba · Engagement: 8 weeks, fixed fee
Combined saving$49,000
ScopeCorporate + personal
Future yearsNo rework needed
The situation — A small law practice, Winnipeg, Manitoba
Nothing was wrong at a small law practice in Winnipeg, Manitoba. The filings were on time and accurate. What they were not was planned. Eighteen months of unreconciled transactions and a shoebox of receipts had never been reviewed.
What we did for A small law practice, Winnipeg, Manitoba
We rebuilt sales from the processor settlement reports so gross sales, fees and refunds each landed in an account of their own. We ran the numbers across both the corporate and personal returns, so the saving was real rather than deferred into someone else's hands.
The result — A small law practice, Winnipeg, Manitoba
$49,000 came off the combined corporate and personal tax bill, and the structure holds for future years without further work.
Case Study 4 · CRA review defended
$109,000 Proposed Adjustment Withdrawn In Full — Residential Cleaning Franchise, Ottawa
The situation — A residential cleaning franchise, Ottawa, Ontario
A residential cleaning franchise in Ottawa, Ontario received a proposal letter opening a review of year-end bookkeeping. The CRA had identified input tax credits claimed on receipts that had already been claimed once. It proposed an adjustment of $109,000, with 30 days to respond.
What we did for A residential cleaning franchise, Ottawa, Ontario
We treated the response as an evidence exercise rather than an argument. We cleared the payroll and sales tax clearing accounts every month and tied each remittance to the liability it settled. We then indexed every supporting document against the specific line the auditor had questioned.
The result — A residential cleaning franchise, Ottawa, Ontario
The proposed adjustment was withdrawn in full — all $109,000 of it. The file closed in 5 weeks with no change to the assessed amounts and no penalty.
Case Study 5 · Sale and succession
$505,000 Sheltered By The Lifetime Capital Gains Exemption — Equipment Rental Yard, Edmonton
Client: An equipment rental yard · Where: Edmonton, Alberta · Engagement: 7 weeks, fixed fee
Gain sheltered$505,000
ClosingOn schedule
Share qualificationMet
The situation — An equipment rental yard, Edmonton, Alberta
An equipment rental yard in Edmonton, Alberta had an offer on the table and 32 months to close. The shares did not qualify for the capital gains exemption. A shareholder loan balance that would have been picked up as income on closing was part of the reason.
What we did for An equipment rental yard, Edmonton, Alberta
We purified the corporation so the shares met the qualifying tests. We separated the owner’s personal spending out of the corporate accounts and cleared the resulting shareholder loan properly. All of it was done well ahead of the closing date.
The result — An equipment rental yard, Edmonton, Alberta
The sale closed on schedule with $505,000 sheltered by the lifetime capital gains exemption across the shareholders.
Client: A wedding photography studio · Where: Mississauga, Ontario · Engagement: 6 weeks, fixed fee
Annual saving$66,000
ReorganisationTax-neutral
StructureMatches operations
The situation — A wedding photography studio, Mississauga, Ontario
The structure at a wedding photography studio in Mississauga, Ontario needed fixing. The file was carrying three years of returns filed off numbers nobody could trace back to a bank statement. Every option for fixing it ran through a reorganisation that had to be done without triggering tax.
What we did for A wedding photography studio, Mississauga, Ontario
We worked with the client's lawyer. Together, 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. We also prepared the elections, resolutions and valuations the structure needed to stand up.
The result — A wedding photography studio, Mississauga, Ontario
The structure now matches the business. Annual saving of $66,000, and the reorganisation itself was tax-neutral.
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.
