6 Small Business Accounting 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 small business accounting work, not a general example.
Case Study 1 · Backlog brought current
3 Years Filed, $38,000 Removed From The Assessed Balance — 14-Person Design Agency, Burnaby
Client: A 14-person design agency · Where: Burnaby, British Columbia · Engagement: 4 weeks, fixed fee
Years filed3
Assessed balance removed$38,000
CollectionsStopped
The situation
A 14-person design agency in Burnaby, British Columbia had not filed for 3 years. The CRA had issued arbitrary assessments, and the business was carrying a bank that refused to renew an operating line without compliant statements on top of a growing interest balance.
What we did
We started with the oldest year and worked forward so each year's closing balances fed the next. We set a monthly close calendar with a fixed cut-off, so the year-end became a review of work already done rather than a twelve-month rebuild, filing the years in sequence rather than all at once.
The result
Every year is now filed and assessed on actual figures. The notional assessments were vacated and $38,000 of the estimated balance came off, with a payment arrangement covering the rest.
Case Study 2 · CRA review defended
$16,500 Reassessment Reduced To Nil On Review — Boutique Fitness Studio Group, Red Deer
Client: A boutique fitness studio group · Where: Red Deer, Alberta · Engagement: 6 weeks, fixed fee
Reassessment reduced toNil
Tax protected$16,500
Prior filingsUndisturbed
The situation
A review notice arrived at a boutique fitness studio group in Red Deer, Alberta covering small business accounting for two tax years. The auditor's working position was an adjustment of $16,500, driven by inter-company balances between two related corporations that had never been reconciled.
What we did
Rather than negotiate, we rebuilt the record. We reconciled the inter-company accounts, papered the arrangement with a written agreement, and aligned both corporations’ year-ends and submitted a point-by-point response that answered each proposed adjustment with the document behind it.
The result
The auditor accepted the documented position and closed the review without adjustment, protecting $16,500 and leaving the prior filings undisturbed.
Case Study 3 · Cash and remittance control
Instalments Rebased, $44,000 Of Cash Returned To The Business — Independent Pharmacy, Barrie
An independent pharmacy in Barrie, Ontario was paying instalments calculated on a prior year that no longer reflected the business. Two sets of numbers — one in the accounting file, one the owner actually ran the business on was tying up $44,000 of cash.
What we did
We rebased the instalments on the current-year estimate rather than the prior-year default, and rebuilt the trial balance from source documents, reconciled every bank and credit-card account, and issued a CSRS 4200 compilation with a proper basis-of-accounting note.
The result
$44,000 of cash stayed in the business, the penalty cycle ended, and the instalment position is reviewed each quarter against actual results.
Case Study 4 · Objection and relief
$103,000 Of Penalties And Interest Cancelled On Relief — Family-Owned Wholesale Distributor, Toronto
An assessment of $103,000 landed at a family-owned wholesale distributor in Toronto, Ontario following a desk review. The auditor had not seen the records behind year-end statements that arrived four months late and never tied to the bank.
What we did
We separated personal and corporate spending, cleared the shareholder loan through a documented salary and dividend mix, and restated the comparative year, then set out the legislative basis for the position alongside the documents supporting it.
The result
$103,000 of penalties and interest was cancelled under the taxpayer relief provisions, and the underlying assessment was adjusted to match the filed position.
Case Study 5 · Sale and succession
$885,000 Sheltered By The Lifetime Capital Gains Exemption — Commercial Cleaning Contractor, Edmonton
Client: A commercial cleaning contractor · Where: Edmonton, Alberta · Engagement: 11 weeks, fixed fee
Gain sheltered$885,000
ClosingOn schedule
Share qualificationMet
The situation
A commercial cleaning contractor in Edmonton, Alberta had an offer on the table and 28 months to close. The shares did not qualify for the capital gains exemption, and no valuation on file to support the price the parties had agreed was part of the reason.
What we did
We purified the corporation so the shares met the qualifying tests, then set a monthly close calendar with a fixed cut-off, so the year-end became a review of work already done rather than a twelve-month rebuild well ahead of the closing date.
The result
The sale closed on schedule with $885,000 sheltered by the lifetime capital gains exemption across the shareholders.
Case Study 6 · Scaling without breaking
Scaled To 51 Staff With $23,000 Of Working Capital Freed — Specialty Food Importer, Surrey
Client: A specialty food importer · Where: Surrey, British Columbia · Engagement: 7 weeks, fixed fee
Headcount reached51
Working capital freed$23,000
Missed deadlinesZero
The situation
A specialty food importer in Surrey, British Columbia was growing fast — headcount to 51 in eighteen months — and the back office had not kept up. A bank that refused to renew an operating line without compliant statements was the first thing to break.
What we did
We reconciled the inter-company accounts, papered the arrangement with a written agreement, and aligned both corporations’ year-ends, and built the compliance calendar for the size the business was becoming rather than the size it had been.
The result
The business reached 51 staff with no missed remittance and no late filing. $23,000 of working capital was freed in the process.
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.
