Canadian accountants see growth as AI & advisory services surge

Canadian accounting and bookkeeping professionals report strong optimism and growth, with new research highlighting the role of artificial intelligence and advisory services in shaping the industry's outlook.

The 2025 State of the Industry Report by Xero shows that 80% of accountants and bookkeepers in Canada are optimistic about the future of their practices following a year of notable performance gains.

Key findings indicate that 75% of respondents recorded increased revenue in the past year, while 76% reported higher profits and 57% expanded their client lists. The combination of technology adoption-particularly in cloud computing and artificial intelligence-and a shift towards advisory services has been identified as a driving force behind these results.

Embracing technology

The report reveals a broad embrace of technology in the sector. A significant 86% of surveyed Canadian practices now use cloud accounting software. However, only 59% of client engagements use this software, highlighting a gap between available technology and its practical implementation with clients.

Artificial intelligence is emerging as a major focus for the profession. According to the findings, 84% of Canadian accountants and bookkeepers feel prepared to adopt AI in their daily workflows, and 90% believe AI will positively impact their business within the next one to two years. Around a third (31%) identified leveraging AI and automation as the greatest opportunity for the industry over this period-placing it well ahead of other factors such as regulatory or market influences.

"The data is clear: the Canadian accounting industry has its eyes firmly on the future," said Andrew Kanzer, Managing Director of North America for Xero. "We're seeing a pivotal shift where professionals see past immediate task efficiencies and envision a future where technology amplifies their expertise for their clients. This readiness for AI is a game-changer, and our commitment is to deliver the powerful, practical tools that will help them unlock new levels of growth and strategic value."

Despite some concerns about training, data security, and implementation costs related to new technologies, respondents expressed confidence that the long-term potential of AI to boost decision-making and operational efficiency outweighed these challenges.

Growth in advisory and service offerings

The industry's expansion has coincided with a diversification of services provided to clients. Across practices of all sizes, 87% now offer advisory services-a figure on par with those delivering traditional bookkeeping, and ahead of tax service offerings (72%). This shift reflects evolving client demands and the growing importance of strategic guidance in financial management.

"Advisory is no longer an add-on, it's what clients demand to navigate their future," said Sophie Dillon, CPA, Co-founder of Orbit Accountants. "For us, technology is the engine for that advice, allowing us to provide real-time dashboards that help clients improve budgeting and cash flow planning. We've seen firsthand how this strategic oversight helps businesses thrive-one of our nonprofit clients used these insights to reallocate funds so effectively their surplus grew by 20% in a single year."

Value-based pricing models have also become more prevalent alongside advisory services, with 72% of practices adopting this approach. A notable 90% of those surveyed agreed that value-based pricing improved practice profitability.

Industry outlook

The report suggests that the sector is moving further away from traditional compliance-based services toward offering higher-value, technology-driven advisory support. Respondents indicated that the focus for the coming years will be leveraging technology to extend both efficiency and client value, while addressing the gap between technology adoption and usage in client engagements.

Survey methodology included 250 Canadian accountants and bookkeepers from practices of various sizes. The research aimed to reflect current trends and the state of technology adoption across the industry in Canada.