How small Canadian tax firms can improve efficiency and profitability

Why high-growth firms are prioritizing AI, automation, and integration to build future-ready practices

Accounting firms are under increasing pressure to deliver more value, more quickly, and with fewer resources. Clients expect seamless digital experiences. Talent remains difficult to attract and retain. At the same time, the complexity of tax and accounting work continues to grow, with firms expected to deliver more insight, not just compliance.

In response, firms are investing in technology, but not in the same way.

According to the 2025 Future Ready Accountant Report, successful firms are building connected, intelligent technology environments that directly support growth, efficiency, and better decision-making, aligning with their strategic priorities. High-growth firms, in particular, are taking a more deliberate approach by prioritizing solutions that work together, scale with the business, and unlock new ways to serve clients.

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Automation and AI: Freeing capacity and enabling smarter work

Automation and AI remain at the center of technology investment, but their role is evolving.

According to report data, AI is no longer emerging; it is embedded in day-to-day operations. Most firms are using AI regularly, and adoption has accelerated rapidly over the past year.

For high-growth firms, this shift is practical. AI and automation are helping them address immediate operational challenges while also opening the door to more advanced capabilities. AI is a growth lever: 70% of high-growth firms use AI at least weekly, and 87% plan to increase investment.

Today, firms are using AI to:

• Automate routine actions and reduce manual workload
• Summarize complex tax scenarios and legislation
• Support tax, audit, and accounting research
• Streamline document processing and data entry

These are not experimental use cases; they are core workflow enhancements. Many of the most valued capabilities among firms today are directly tied to automation and AI-driven efficiency, including workflow optimization and automated data collection.

Beyond the return:  How AI and automation are reshaping tax preparation 

Cloud and integration: Enabling a connected tech stack

Behind all of these investments is a common foundation: cloud-based, integrated systems. Among high-growth firms, 19% have connected 75% or more of their systems, compared to 14% of firms overall. This deep integration allows them to respond quickly to change and deliver more consistent, data-informed service.

Firms are increasingly prioritizing technology environments that enable seamless data flow across tools. This reduces duplication, improves accuracy, and enables more advanced capabilities such as automation and AI.

The most valued technology capabilities today reflect this need for integration and efficiency. Firms are placing a high priority on:

• Integrating systems for workflow optimization
• Automating client data and document collection
• Supporting real-time access to information

This reinforces an important point. While individual tools matter, the real value lies in how they work together.

Platforms like CCH iFirm® are designed to support this kind of connected ecosystem, helping firms manage workflows, data, and client interactions more effectively.

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How tech investment priorities vary by firm size

While the overall direction of technology investment is consistent, priorities shift based on firm size and complexity.

Smaller firms tend to focus on efficiency and ease of use. With limited staff, they prioritize tools that reduce manual work and improve day-to-day productivity.

Mid-size firms are more focused on scaling operations. As workloads grow, they invest in systems that standardize processes and support collaboration across teams.

Larger firms operate in more complex environments and typically prioritize advanced capabilities, including AI, data analytics, and deeper system integration.

While these priorities vary, they reflect a common goal: aligning technology with each firm’s stage of growth. Across firm sizes, priorities generally break down as follows:

• Small firms: Workflow automation, client portals, and document management
• Mid-size firms: Integrated systems, collaboration tools, and process standardization
• Large firms: AI, data analytics, enterprise integration, and staff training

These investments don’t exist in isolation. They reinforce each other, particularly as firms move toward more integrated, data-driven operations.

Where firms still face challenges

Even as firms increase their technology investments, many challenges remain. In most cases, the issue isn’t access to tools — it’s getting the full value out of them.

One of the biggest gaps is turning data into actionable insights. Firms are collecting more data than ever, but many still struggle to turn it into actionable insight. This becomes even more important as firms expand into advisory services.

Staffing and technology adoption are also closely linked. While automation and AI help reduce manual work, they increase the need for technical skills. Firms are placing greater emphasis on upskilling, while employees expect better tools to do their jobs effectively.

At the same time, firms continue to face broader operational challenges, including:

• Keeping up with evolving tax laws and regulatory changes
• Managing rising client expectations for speed and personalization
• Navigating pricing pressures and competition
• Balancing growth with operational efficiency

Data security remains an ongoing concern as firms adopt more advanced and cloud-based technologies. Ultimately, these challenges highlight that technology alone is not enough — firms must also align their tools with the right processes, strategy, and talent to fully realize their value.

The future-ready path forward

The accounting firms that will lead the next decade aren’t the biggest or even the most established. They are the ones willing to strategically adopt and integrate the right technology, develop their people, and reimagine how they deliver value.

Whether firms are just starting to explore automation or building out a full tech stack for scale, Wolters Kluwer provides solutions designed to support firms at every stage of this journey, helping to:

• Improve efficiency
• Boost security
• Enhance client experiences
• And grow profitably

Explore the full Future Ready Accountant report to dive deeper into the trends, benchmarks, and technology strategies high-growth firms are using to lead the future of the profession.