6 App Developers tax and accounting engagements in full — what the client came to us with, what we did, and what it was worth. Each one is specific to app developers work, not a general example.
Case Study 1 · Scaling without breaking
Scaled To 15 Staff With $22,000 Of Working Capital Freed — Custom Software Development Shop, Lethbridge
Client: A custom software development shop · Where: Lethbridge, Alberta · Engagement: 8 weeks, fixed fee
Headcount reached15
Working capital freed$22,000
Missed deadlinesZero
The situation
A custom software development shop in Lethbridge, Alberta was growing fast — headcount to 15 in eighteen months — and the back office had not kept up. Sector deductions claimed on a general-business basis rather than the app developers rules was the first thing to break.
What we did
We aligned the reporting calendar with the sector’s own seasonal cycle rather than a generic year-end, and built the compliance calendar for the size the business was becoming rather than the size it had been.
The result
The business reached 15 staff with no missed remittance and no late filing. $22,000 of working capital was freed in the process.
Case Study 2 · Sale and succession
$665,000 Sheltered By The Lifetime Capital Gains Exemption — Data Analytics Consultancy, Winnipeg
Client: A data analytics consultancy · Where: Winnipeg, Manitoba · Engagement: 5 weeks, fixed fee
Gain sheltered$665,000
ClosingOn schedule
Share qualificationMet
The situation
A data analytics consultancy in Winnipeg, Manitoba had an offer on the table and 24 months to close. The shares did not qualify for the capital gains exemption, and a minute book with no resolutions behind a decade of dividends was part of the reason.
What we did
We purified the corporation so the shares met the qualifying tests, then rebuilt the chart of accounts around how a app developers business actually earns and spends well ahead of the closing date.
The result
The sale closed on schedule with $665,000 sheltered by the lifetime capital gains exemption across the shareholders.
Case Study 3 · Objection and relief
$49,000 Of Penalties And Interest Cancelled On Relief — E-Learning Platform, Brampton
An assessment of $49,000 landed at an e-learning platform in Brampton, Ontario following a desk review. The auditor had not seen the records behind a previous accountant with no experience of this sector.
What we did
We documented the positions to the standard the CRA applies to this sector specifically, then set out the legislative basis for the position alongside the documents supporting it.
The result
$49,000 of penalties and interest was cancelled under the taxpayer relief provisions, and the underlying assessment was adjusted to match the filed position.
Case Study 4 · Cash and remittance control
$130,000 Of Working Capital Freed From The Tax Cycle — B2B SaaS Company, Barrie
Client: A B2B SaaS company · Where: Barrie, Ontario · Engagement: 6 weeks, fixed fee
Working capital freed$130,000
On-time remittancesEvery period since
Forecast horizon13 weeks
The situation
A B2B SaaS company in Barrie, Ontario was profitable on paper and short of cash every month. Equipment and asset classes assigned by guesswork rather than the CCA schedule explained most of the gap.
What we did
We reassigned the asset classes on the CCA schedule and corrected the opening balances and built a thirteen-week cash view so tax payments stopped competing with payroll for the same dollars.
The result
$130,000 was released back into working capital. Remittances have been on time every period since, and the forecast shows the tax outflow before it lands.
Case Study 5 · CRA review defended
$105,000 Proposed Adjustment Withdrawn In Full — Mobile App Studio, Mississauga
Client: A mobile app studio · Where: Mississauga, Ontario · Engagement: 5 weeks, fixed fee
Adjustment withdrawn$105,000
File closed in5 weeks
Penalties assessedNone
The situation
A mobile app studio in Mississauga, Ontario received a proposal letter opening a review of app developers accounting and tax. The CRA had identified seasonal revenue reported without matching the costs that produced it and proposed an adjustment of $105,000, with 30 days to respond.
What we did
We treated the response as an evidence exercise rather than an argument. We reviewed every sector-specific deduction against the current rules and claimed the ones that had been missed, then indexed every supporting document against the specific line the auditor had questioned.
The result
The proposed adjustment was withdrawn in full — all $105,000 of it. The file closed in 5 weeks with no change to the assessed amounts and no penalty.
Case Study 6 · Backlog brought current
$37,500 Of Arbitrary Assessments Vacated After 6 Years — Cybersecurity Firm, Saskatoon
6 years of unfiled returns had turned into notional assessments at a cybersecurity firm in Saskatoon, Saskatchewan, with a chart of accounts that told the owner nothing about app developers margin underneath. Collections had already started.
What we did
We aligned the reporting calendar with the sector’s own seasonal cycle rather than a generic year-end, then filed every outstanding year in chronological order so the CRA could vacate the notional assessments cleanly.
The result
All 6 years were accepted as filed. $37,500 of arbitrarily assessed tax was vacated, collections action stopped, and the account is current for the first time in 6 years.
Reviewed for the 2025 tax year by Udit Gupta, Certified Tax Accountant. Figures describe representative engagements of this type; outcomes depend on your own facts. Client names and identifying details are omitted for confidentiality.
