Canadian accounting firms have limited options when it comes to improving their bottom line, given the realities of the market. Their choices tend to fall into four categories:
- Add more services — and find ways to do so profitably.
- Add more clients — either through M&A or organic growth.
- Charge clients more — ideally outpacing rising costs (which is easier said than done).
- Do the same work with fewer resources — through staff reductions or investments in technology.
Every major firm in Canada is building its strategy from a unique blend of these options, creating noticeable divergence in how they approach growth. Once viewed as largely interchangeable, Canada’s largest firms are now carving out distinct positions in a crowded market — a market where the number of assurance and tax compliance engagements is ultimately finite.
A Case Study: MNP and BDO Take Divergent Paths
Recent M&A activity highlights how starkly these strategies can diverge. MNP’s acquisition of 21 smaller BDO offices demonstrates how firms are actively choosing very different paths to growth. Just a few years ago, MNP and BDO operated in what felt like the same space. Today, their approaches couldn’t be more different.
MNP has leaned into volume and client acquisition, aggressively purchasing books of business that larger firms are moving away from. This isn’t a new play for them — Deloitte sold several regional practices to MNP in 2021. Their strategy is clear: serve a broad client base, especially in underserved markets.
BDO, on the other hand, has moved upmarket — shedding smaller, local practices in favor of targeting larger, more lucrative engagements that align with their long-term profitability goals.
One Market, Many Strategies
This divergence goes well beyond MNP and BDO. Each of Canada’s largest firms is charting its own course:
- KPMG — With its KPMG Private Enterprise practice, the firm has planted its flag as the go-to for private businesses. In local markets, its competition isn’t necessarily the other Big Four — it’s firms like MNP and regional independents. KPMG’s value proposition? “Big firm resources and expertise, with local relationships and accessible pricing.”
- Grant Thornton — As evidenced by the recent “re-brand” to Doane Grant Thornton, it is narrowing its focus to private businesses, recognizing the mounting costs and complexity of maintaining public company audit compliance. As regulatory requirements and scrutiny continue to increase, the firm has chosen to double down where it performs best: serving private enterprises.
- RSM — In just a few years, RSM has emerged as a major player in the large private company space. Their hybrid model — combining North American industry expertise with strong local relationships — is resonating. And in a world increasingly comfortable with remote service delivery, this expertise-driven approach is gaining even more traction.
- EY and PwC — Both firms are maintaining regional offices, but they’ve centralized operational decision-making and embraced a high-cost, high-value model. Their focus is clear: large, complex clients. For PwC, that means stepping away from small business owners and personal tax work unless it’s tied to a larger operational mandate. Both firms are also betting heavily on technology, investing in proprietary tools to drive efficiency and differentiation.
The Pendulum Always Swings
Having worked for — and been a client of — four of Canada’s largest firms, and having had sales conversations with the others, I’ve seen these strategies play out in real time. There’s no single “right” approach. If anything, the variety of strategies simply validates that there are multiple ways to win in a constrained market.
But make no mistake: the industry is at a pivotal moment. Over the next decade, technological disruption, leadership turnover, staffing shortages, and rising costs will continue to reshape the landscape. When the pendulum swings again — and it always does — firms will need to adjust their strategies once more.
Final Thoughts
The choices Canadian accounting firms make today will shape their ability to thrive in the years ahead. Whether they move upmarket, double down on volume, or make bold technology investments, they are all staking their claim in an industry under pressure.
The real winners will be those who can adapt — not just to technology, but to evolving client expectations and competitive pressures — all while staying true to what they do best.
Author: Dave Bunce, CPA, CA
