6 Bookkeeping Reconstruction for CRA 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 bookkeeping reconstruction for cra work, not a general example.
Case Study 1 · Scaling without breaking
Scaled To 64 Staff With $43,000 Of Working Capital Freed — Restaurant Under a Net-Worth, Vancouver
Client: A restaurant under a net-worth audit · Where: Vancouver, British Columbia · Engagement: 5 weeks, fixed fee
Headcount reached64
Working capital freed$43,000
Missed deadlinesZero
The situation
A restaurant under a net-worth audit in Vancouver, British Columbia was growing fast — headcount to 64 in eighteen months — and the back office had not kept up. Six years of unfiled corporate and personal returns and an active collections file was the first thing to break.
What we did
We assembled the contemporaneous records, filed a structured response to each proposed adjustment with the supporting documents indexed, and had the proposal withdrawn, and built the compliance calendar for the size the business was becoming rather than the size it had been.
The result
The business reached 64 staff with no missed remittance and no late filing. $43,000 of working capital was freed in the process.
Case Study 2 · Records and systems rebuilt
Month-End Close Cut From 8 Weeks To 4 Days — Importer Under a Customs, Moncton
Client: An importer under a customs and GST audit · Where: Moncton, New Brunswick · Engagement: 8 weeks, fixed fee
Close time before8 weeks
Close time after4 days
Year-endReview, not rebuild
The situation
The accounting file at an importer under a customs and GST audit in Moncton, New Brunswick was built on a net-worth assessment built on unexplained deposits that were actually loan proceeds. The year-end had taken 8 weeks each of the last three years.
What we did
We filed the disclosure through the Voluntary Disclosures Program before contact, which removed the gross-negligence penalty entirely and moved the reconciliations into the monthly cycle, so the year-end stopped being a rebuild.
The result
The file reconciles. Month-end closes in 4 days instead of 8 weeks, and the year-end is a review rather than a reconstruction.
Case Study 3 · Structure rebuilt
Corporate Structure Rebuilt For $25,500 Of Annual Savings — Family Business Under a, Burnaby
Client: A family business under a related-party review · Where: Burnaby, British Columbia · Engagement: 11 weeks, fixed fee
Saving per year$25,500
DocumentationComplete
Transfer basisRollover
The situation
The structure at a family business under a related-party review in Burnaby, British Columbia had been set up years earlier for a business that no longer existed, and a director liability assessment for a corporation that had already stopped operating had become expensive.
What we did
We traced each unexplained deposit to its source — loans, transfers between accounts, an insurance settlement — and reduced the net-worth assessment accordingly. The reorganisation used the rollover provisions rather than a taxable transfer, so no tax fell due on the restructuring itself.
The result
$25,500 of annual saving, achieved on a tax-deferred basis. The minute book, elections and valuations are all in the file.
Case Study 4 · Missed incentive claimed
$41,000 In Credits Claimed That Prior Filings Had Missed — Taxpayer with Frozen Bank, Ottawa
Client: A taxpayer with frozen bank accounts · Where: Ottawa, Ontario · Engagement: 4 weeks, fixed fee
Credits claimed$41,000
Years adjusted3
Review outcomeNo adjustment
The situation
A taxpayer with frozen bank accounts in Ottawa, Ontario had been filing for 3 years without ever claiming the incentives its activity qualified for. Behind that sat a director liability assessment for a corporation that had already stopped operating.
What we did
We tested each activity against the eligibility criteria rather than the description on the invoice, then brought every outstanding return current, then negotiated a payment arrangement that stopped the collections action.
The result
$41,000 in credits claimed, with the open prior years adjusted as well. The claim passed review without adjustment.
Case Study 5 · Planning that cut the bill
$17,000 Saved By Correcting What Prior Filings Had Missed — Company Facing a Payroll, Guelph
Client: A company facing a payroll trust examination · Where: Guelph, Ontario · Engagement: 4 weeks, fixed fee
Saving identified$17,000
RecurringYes
Positions documentedAll
The situation
A company facing a payroll trust examination in Guelph, Ontario asked for a second opinion on bookkeeping reconstruction for cra after three years of rising tax. The review found a proposal letter with a 30-day response window and no supporting records assembled.
What we did
We built the comparison first — current structure against two alternatives — and then assembled the contemporaneous records, filed a structured response to each proposed adjustment with the supporting documents indexed, and had the proposal withdrawn.
The result
First-year saving of $17,000, with the same benefit recurring. Every position taken is documented and supported in the file.
Case Study 6 · Deadline rescue
Filed On Time From A Standing Start, $52,000 Penalty Avoided — Professional Under a Lifestyle, Kitchener
Client: A professional under a lifestyle audit · Where: Kitchener, Ontario · Engagement: 10 weeks, fixed fee
Penalty avoided$52,000
Turnaround10 weeks
FiledOn time
The situation
A professional under a lifestyle audit in Kitchener, Ontario came to us 10 weeks before its filing deadline with six years of unfiled corporate and personal returns and an active collections file. A late filing would have triggered a penalty of roughly $52,000 before interest.
What we did
We worked backwards from the deadline. We filed the disclosure through the Voluntary Disclosures Program before contact, which removed the gross-negligence penalty entirely, prioritising the items that actually gated the filing and deferring everything that did not.
The result
The return was filed on time and complete. The $52,000 penalty never arose, and the compliance calendar we set means the next deadline is scheduled rather than discovered.
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.
