Canada’s accountants are bullish on the future. Three in four firms reported higher revenue and profits in 2025, and most are preparing to embrace artificial intelligence, according to Xero’s newly released State of the Industry Report.
The findings highlight a profession in transition—from record-keeping to strategic advisory—powered by cloud software, value-based pricing, and an industry-wide readiness to adopt AI.
Despite economic headwinds, optimism across Canada’s accounting and bookkeeping sector is strong. The report found that 80% of firms are optimistic about their future after a year marked by 75% reporting increased revenue, 76% posting higher profits, and 57% expanding their client base.
“Canadian firms aren’t just resilient—they’re progressive,” 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.”
Technology remains central to growth, but the report highlights an important disconnect. While 86% of practices use cloud accounting software, it is applied in only 59% of client engagements. This signals a missed opportunity—but also room for providers and firms to deepen integration. Encouragingly, the appetite for emerging tools is clear: 84% of Canadian accountants feel ready to adopt AI, and nine in ten are optimistic about its impact. Roughly a third see AI as the single biggest opportunity in the next two years.
Growth is also being driven by expanded service offerings. Nearly nine in ten Canadian practices now provide advisory services, making it as common as bookkeeping and surpassing tax services. “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. “Technology is the engine for that advice. With real-time dashboards, we’ve helped clients boost budgeting and cash flow planning. One nonprofit client even reallocated funds so effectively their surplus grew 20% in a single year.”
Firms are increasingly bundling advisory with value-based pricing, and 72% of practices now do both. The payoff is significant: 90% of respondents said value-based pricing improved profitability.
As AI readiness accelerates and advisory becomes the new standard, Canada’s accounting industry is evolving into a strategic growth partner for businesses nationwide. For many firms, the future will be less about keeping the books—and more about shaping the future of Canadian business.
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