How a Professional Services Company Caught Up on Years of Bookkeeping to Secure a Mortgage

CASE STUDY

Background

A professional services company had fallen behind on several years of bookkeeping and corporate tax filings. The owner approached Purpose CPA with an urgent request: they needed up-to-date financial statements and tax returns to support a time-sensitive residential mortgage application. While the client had access to some bank records and retained many of their receipts, the records were incomplete and lacked digitization.

A professional services company with one owner-operator and two employees. Purpose CPA provided Catch-up Bookkeeping and Accounting & Tax Services to help client apply for a residential mortgage.

Industry:

Professional Service

Services Provided:

Accounting & Tax
Bookkeeping

Challenges

Incomplete records: Several bank statements were missing, and receipts were unorganized and not digitized.
Complex account structure: The company operated with multiple bank and credit card accounts and had a high volume of transactions across multiple years.
Time-sensitive tax planning: The client required strategic income reporting to align with mortgage qualification criteria—all within a short deadline.

The Solution

To meet the tight timeline, Purpose CPA adopted a streamlined and pragmatic approach:

Assigned an experienced bookkeeper: A dedicated bookkeeper with years of experience in catch-up bookkeeping was assigned to the file, ensuring consistency, speed, and accuracy from day one.
Rebuilding from bank data: The client connected available bank feeds to QuickBooks Online. Where feeds were unavailable or historical data was needed, PDF statements were converted into data using Dext and imported into QBO.
Cash-coding for speed: Given the urgency, transactions were cash-coded with GST/HST forced out based on transaction type and vendor. Receipt matching was completed on an exception basis, focusing on higher-value or audit-sensitive expenses.
Coordinated tax planning: Purpose CPA worked closely with the client to align reported income and expenses with the lender’s documentation requirements, balancing compliance with financial strategy.

Impact

Rapid turnaround: Multiple years of catch-up bookkeeping, T2 corporate tax returns, and compilation engagements were completed within a few months. The client successfully applied for and secured their residential mortgage.
Full compliance filing: All required T5, T4, and T4A slips were filed, and personal T1 tax returns were prepared. The client’s desired income reporting requirements for the mortgage application were met without compromising CRA compliance.
Future-ready systems: Books were fully transitioned to QuickBooks Online, setting the client up for easier ongoing bookkeeping and streamlined tax preparation in the future.

Conclusion

This case illustrates how even multi-year bookkeeping backlogs can be resolved quickly and effectively with the right tools, systems, and expertise. Purpose CPA helped the client not only catch up on financial compliance but also achieve a critical personal milestone. With their books now in order and their systems modernized, the client is well-positioned for long-term financial success.

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