360° Blog

Font size: +

Case Study - How we Helped this Business Grow & Improve their Profit


A new Small business client came to us for Accounting and Income tax Help. They were a local Edmonton Renovation Company. We were very happy to sit down and work with them to grow their business and increase their profit. 

The complaint they brought to us, was that the previous Accounting firm did not educate them, and did not encourage the adoption of technology to grow their business. 

We started by introducing new Cell Phone Apps:

To start with we demonstrated we are a virtual firm. We utilize digital and cloud systems to efficiently work with our clients. 

With that adoption of Software, and the use of the smartphone as well as an Ipad to conduct business. The Smartphone replaced many tasks that were taking up valuable time and helped to keep their files more organized. 

Steps in the Success Journey 

  1. No need to supply paper copies of Source documents such as bank statements, receipts etc. 
  2. No need to provide paper copies of prior years Accounting year ends.   
  3. Smartphone took pictures and emailed forms and receipts directly to Analysis360°.
  4. Auto-posting into a Document management system.  The client could then login and confirm and view the document that had been posted. Comments could be left directly on that document by the client. For Example, they could state that a purchase was for a Cut-off Saw on the small tools account.  
  5. Setup Accounting records on Quickbooks online. Provided training for the client to access his file online via the iPad. We also trained them on how to view reports and Finacial statements. 
  6. Setup payroll within Quickbooks online, so that payroll costing would be done correctly. 
  7. Six-month review. We identified that there was a need for planning. Embarked on Cash flow Enhancement, and Collections program. Setup Electronic billing to the Clients, Recording time by GPS (at the job site) used APP (jobber) to do job quotes and email to clients. 
  8. Previous year /Previous year-end. The process was Shareholder draws, at year-end, we calculated the tax owing, and both the tax and accounting fee was payable. 
  9. The client Reduced the year-end Accounting fee From $6000.00 to $2500.00 
  10. The client Reduced the bookkeeping fee prior year of $12500.00 to $1250.00 as he moved to the DIY bookkeeping program (with a small coaching fee).
  11. 2nd year saw tax savings, bookkeeping savings, and planning savings.   See Chart Below.
  12. Also as a result of planning, He claimed on CI  Insurance for the protection of his company, when he got sick.  

A change in business value and personal income does also incorporate savings on personal income tax. These are the steps we took to help this business refine their process so they could save and make more profits. Each business is unique so these steps may change depending on the goal and business structure. 

Profit  Chart.    

Year end of March 31 2020

                                                                                               Prior Acct Firm                   Analysis360               Analysis360       Analysis360


2 Year Prior

Last year

Current Year

Next Year

Gross sale





Operating Expense





Direct Labour





Total Expense





Gross Profit





Corp Tax (@ 12 %





Net Income After Tax 





Less Dividends


 83 200.00



Net  R/E after Dividends





Non Taxable Insurance Proceeds (claimed On CI)





Adj R/E 





Accounts Past due 


 10 000.00



Bank Balance





Other Assets- Auto - Rental Property





Personal tax

Personal Net Income 


 All Salary



 Mix Sal& Div



 Dividend only



 All income from Loans On   Insurance Plan 





Client Goal: Year 1: Year 4:
Client wanted to PAY Zero Personal Income tax.    0 personal tax
Increase Bank balance  $10,000.00  $810,000.00
Collect on Bad Debts AR  $295,000.00  $20,000.00
Wanted to have a New Company truck  0  $100,000.00
Wanted an increase in Profit after tax  $22,000.00  $211,000.00
Wanted to increase sales  $525,000.00  $750,000.00

Of course, transformation and improvement in Cash, bank, sales, required collaboration with the Accountants, Training the small business owner, Adoption of Technology and following Tax planning, financial planning, and utilizing targeted business services from Analysis360°. 

We have only expressed the growth in the actual numbers without reflecting the various % increases and ratio improvements. Small business owners often are more interested in the basic business indicators of Growth, Gross sales, profit after tax, and disposable income. 

Personal income could be an issue, if you could not live on a net income of 200,000.00 then that might mean further work on personal goals, personal budgeting and financial planning. 

Peace of Mind for this client could be measured this way. 

  • Security- Assets, Growth in business, and Cash in the bank. 
  • Could the Owner Afford to pay his Brother to run the business for a year?  Yes.
  • Could the Owner Afford to take a 1-year sabbatical/vacation?   Yes. 
  • Lowered cost of Bookkeeping and Income tax Preparation (use of Virtual Accounting Firm)
  • Tax filing was compliant and up to date- Current filings (due to use of Technology)
  • Monthly Financial reviews with His Accountant - always knew where he stood. 

We appreciate the trust this client gave us to let us come in and work together to help them reach their goals! 


If you would like support in reaching your goals, book a FREE Consultation here.

Top 14 Tax Saving Tips
8 Signs Your Business is Ready for an Accountant


No comments made yet. Be the first to submit a comment
Already Registered? Login Here
Tuesday, 18 June 2024
Zero Advisor Certified
Hubdoc Certified Xero Partner
Plooto Certified Advisor

Analysis 360° on bark

Analysis 360°