Unlocking Client Advisory Services (CAS) Growth: Strategic Insights for Canadian CPA Firms
Client Advisory Services (CAS) continue to be the fastest-growing segment within public accounting. While recent CAS Benchmark Survey data highlights a median growth rate of 17% among U.S. firms and project 99% growth over the next three years, similar opportunities are emerging in Canada. Canadian CPA firms are increasingly embracing proactive advisory-focused strategies to meet evolving client expectations and drive sustained growth.
Growth Potential for Canadian CPA Firms in Client Advisory Services (CAS)
The Canadian accounting industry is experiencing significant growth, presenting substantial opportunities for CPA firms to expand their Client Advisory Services (CAS). According to Statistics Canada, the operating revenue of the accounting, tax preparation, bookkeeping, and payroll services industry rose by 9.7% to $28.2 billion in 2023, marking a consistent upward trend since 2012, with an average annual growth rate of 7.0%.
This growth is not just in traditional services. A recent report by Xero highlights that 22% of Canadian accounting and bookkeeping practices added client advisory services to their offerings in the past year. Additionally, 32% introduced value-based pricing, aiming to drive higher revenues and enhance billing transparency for clients.
Firms that embraced CAS and value-based pricing were more likely to witness revenue growth, with 70% of practices reporting increased revenues and 70% noting higher profits. The primary drivers for this profitability were an increase in services provided (48%) and streamlined internal processes (41%).
These statistics underscore a clear trend: Canadian CPA firms that diversify their services to include CAS and adopt innovative pricing models are well-positioned to capitalize on the evolving needs of their clients and the broader market.
Strategic Drivers of CAS Success for Canadian CPA Firms
1. Proactive Tax and Estate Planning Integration
Rather than viewing tax compliance and estate planning as separate services, forward-looking CPA firms are embedding proactive tax and estate strategies within their CAS offerings. With aging business owners and intergenerational wealth transfers on the rise, clients are increasingly seeking coordinated advice that spans business and personal finances.
According to a CFIB report, over 70% of small business owners in Canada plan to exit their business in the next decade, but most do not have a succession or estate plan in place. Integrated Advisory helps CPA firms become the primary connector between the client’s business and family wealth strategies.
2. Unified Business-Family Financial Strategy
Canadian clients increasingly expect their advisors to support both business and personal goals in a cohesive strategy. Integrated Advisory’s model enables CPA firms to move beyond isolated compliance tasks and position themselves as the quarterback of the client’s financial life: bridging corporate structure, compensation, retirement, insurance, and investments.
3. Trigger-Based Planning Across the Lifecycle
Rather than waiting for clients to ask for help, high-performing Canadian firms are embedding trigger-based planning into their CAS workflows. This involves identifying key financial, tax, or business milestones such as reaching $1M in retained earnings, hitting an income threshold, adding partners, or planning an exit that signal a need for advisory and planning collaboration.
Enhancing Firm Efficiency through Strategic Technology Investments
In 2025, artificial intelligence (AI) is transforming the Canadian accounting landscape, offering firms unprecedented opportunities to enhance efficiency and client service. By automating routine tasks, AI enables professionals to focus on strategic advisory roles, aligning closely with client expectations for proactive advice.
Key Insights:
High Adoption Rates: A KPMG survey reveals that 82% of Canadian organizations are using or piloting AI in their finance functions, surpassing the global average of 71%.
Enhanced ROI: Nearly 69% of Canadian firms report that the return on investment from AI meets or exceeds expectations, compared to 61% globally.
Transitioning to Value-Based Pricing: A Strategic Opportunity
The shift away from hourly billing towards subscription and value-based pricing models continues to gain traction within Canada. Adopting these modern pricing approaches helps align firm services with client-perceived value, providing greater revenue predictability and enhancing client satisfaction.
Benefits of Value-Based Pricing
Enhanced Client Relationships: Clients appreciate transparent pricing that reflects the value they receive, leading to stronger, trust-based relationships.
Improved Profit Margins: By focusing on outcomes rather than hours, firms can better capture the value of their expertise, leading to higher profitability.
Operational Efficiency: Value-based pricing encourages firms to streamline processes and leverage technology, reducing time spent on routine tasks.
Implementing Value-Based Pricing
Transitioning to value-based pricing requires a strategic approach:
Understand Client Needs: Engage in discussions to identify what clients value most in your services.
Define Service Packages: Create tiered service offerings that align with client needs and perceived value.
Communicate Value Clearly: Articulate the benefits and outcomes clients can expect, reinforcing the value of your services.
Leverage Technology: Utilize tools and software to enhance service delivery and demonstrate efficiency gains to clients.
Integrated Advisory Opportunities: Deepening Client Relationships
While Canadian CPA firms have made substantial progress in adopting strategic advisory services, this major shift doesn't happen overnight. The next step is to fully integrate these advisory touchpoints into comprehensive financial and strategic planning.
By strategically merging these advisory and planning services, Canadian CPA firms can further solidify their role as indispensable strategic advisors, creating deeper client value and securing long-term growth within Canada's evolving financial services landscape.
Integrated Advisory has a dedicated team and network of forward-thinking CPA firm members, committed to help you evolve from trusted tax professional to holistic financial planner.
Don’t wait on the sidelines. Visit www.integratedadvisory.com to join today.
