Case Studies

Some of our case studies include ...

Conversion to a new Accounting System

Client Profile: A service-based partnership company earning $200,000 revenue with no employees

Client Challenge: The client’s sales and expenses were being tracked solely on spreadsheets which became very time-consuming and cumbersome. The client fell behind in updating the spreadsheets and subsequently became late in filing the corporate tax and HST returns.

Our Solution: We recommended an accounting software system that best suited the needs of the business and then proceeded to train the client to enter their own sales, purchases, customer deposits and bill payments into the system. We created a monthly checklist of accounting tasks including a reconciliation of the bank and credit card accounts and regular financial statement analysis.

The Results: Several years later, the client successfully utilizes the accounting system to track and measure monthly income and expenses. They consistently file their HST returns on time and have avoided further penalties, thus increasing their savings.

Year end Complications

Client Profile: A steel products manufacturing business with revenues exceeding $1 million and eight employees including fulltime bookkeeper

Client Challenge: At year end it was discovered that the ending balances and account reconciliations in the accounting system did not balance with the monthly bank or credit card statements. Moreover the opening retained earnings balance did not agree with the accountant’s trial balance from the previous year. The accountant could not proceed with the preparation of the financials or the corporate tax return.

Our Solution: We were brought in by the accountant to analyze each bank statement, reconciliation report, and general ledger account and identified the discrepancies. We prepared and forwarded to the accountant’s satisfaction a list of adjusting journal entries that balanced the accounts perfectly.

The Results: The accountant completed the yearend review and prepared and filed the corporate tax return. We now meet regularly with the bookkeeper to review the books, correct any posting errors, and ensure that the data in the accounting system is accurate and reliable.

Fast Growing Business

Client Profile: A small business providing natural health supplements with annual revenue of approximately $5 million and 6 employees

Client Challenge: Fast growth business had tripled its revenues in a short period of time, resulting in immediate need to outsource bookkeeping functions

Our Solution: We implemented full accounting services with remote access from our office to our client’s accounting file. As an extension to this client’s team, we provide daily support on all his financial activities including payroll, collections, payables, and HST tracking.

The Results: Client enjoys a hands-off approach to his accounting requirements without worry about missing the small details. Receivables are very low – more profits are being netted – and the client has a virtual accounting team for less than the cost of a fulltime bookkeeper.

New Business Acquisition

Client Profile: A small business providing locksmith services with 4 employees and annual revenue of $300,000.

Client Challenge: Like many new business owners, our client was overwhelmed, stressed, and falling further behind in his accounting paperwork. He had no idea where he stood with his suppliers and customers. A second fiscal year end had approached while the first year end was still incomplete and not reconciled.

Our Solution: We began the process of carefully untangling the bookkeeping records and analyzing each monthly bank statement to identify which transactions were not yet posted while correcting those transactions that had been entered incorrectly.

The Results: In just six weeks, both years were balanced and forwarded to the accountant for the yearend review and filings. The accounts receivable and payable were brought up to the date and the owner started to relax, knowing that he could rely on us to keep his accounting on track.

12 years later we are still fulfilling the ongoing bookkeeping needs of our client. Today, his business operates more profitably and his earnings have increased, enabling him to take long vacations.