As Canada’s small and medium-sized businesses face mounting challenges in an increasingly complex tax and regulatory environment, Chartered Professional Accountants (CPAs) are stepping up to help clients cut through the red tape.

Three-quarters of small and medium-sized enterprise (SME) owners prioritize reducing the overall tax burden and addressing the rising cost of doing business, according to a survey by the Canadian Federation of Independent Business.

The survey findings underscore the importance of a principled approach to tax policy and administration. and of reducing regulatory complexity and other barriers to doing business.

With 1.2 million SMEs contributing more than half of Canada’s GDP, their growth and stability are crucial to the country’s overall economic health.

Keeping pace with current global business and economic trends, while simultaneously meeting the current needs of their business, presents a significant challenge for smaller entities with limited resources.

Now more than ever, CPAs must work to remove roadblocks for SMEs. That’s why at every level—from local to national to global—CPA Canada is there to champion policies and provide resources that allow CPAs to provide that essential support and guidance.

Regulatory and compliance burden

Navigating Canada’s regulatory and tax environment is one of the biggest hurdles SMEs face. The complexity of Canadian tax laws and compliance requirements often imposes a heavy burden on small businesses.

CPAs offer invaluable assistance in this area, helping SMEs to navigate the regulatory landscape more effectively. By staying up-to-date on tax laws and regulations, CPAs help businesses to avoid costly mistakes and to optimize their tax strategies.

CPA Canada’s In-Depth Tax Program (IDTP) has been the leading choice for CPAs for more than 40 years. Since the inception of the nationally recognized program, more than 20,000 tax specialists have graduated. Graduates are able to utilize the deep knowledge of our extensive network of tax experts to gain the practical and relevant training they need to stay current.

As the national accounting body, CPA Canada has long advocated for a comprehensive review of Canada’s tax regime and for policy reforms that simplify tax regulations and reduce compliance burdens.

CPA Canada’s recent advocacy on the issue of bare trusts led to important proposed regulatory updates—including the government’s decision to waive the 2023 filing requirement—alleviating some of the pressures faced by SMEs.

And our work continues. Through CPA Canada’s Joint Committee on Taxation with the Canadian Bar Association, we are collaborating with the government to refine the rules for taxable and disregarded trusts and have been invited by the Office of the Taxpayers’ Ombudsperson to be part of its investigation into the CRA’s handling of the bare trust issue.

CPA Canada ensures the voices and needs of SMEs are heard through connections with federal decision-makers and global partners.

Other areas where CPAs can help

As technology evolves rapidly, SMEs often face difficulties in integrating new systems and processes due to cost and complexity. CPAs are instrumental in guiding businesses through this technological transformation.

CPA Canada provides a comprehensive suite of resources focused on emerging technologies, including artificial intelligence, blockchain and cybersecurity.

This practical guidance, including detailed guides and tools, allows CPAs to help SMEs assess their technological needs, select appropriate solutions and implement new systems efficiently.

Furthermore, small and medium-sized practices (SMPs) are a vital resource for SMEs. CPA Canada supports these accounting businesses with guidance and tools for implementing audit and assurance standards. This includes plain-language guidance, developed in consultation with practitioners, to address common questions and ensure consistency in application.

Tools such as the Practice Engagement Guide (PEG) and Quality Management Guide (QMG), provided by CPA Canada, also offer step-by-step support for engagements, while practice management tools like the Practice Advisory and Compliance Tool (PACT) enhance efficiency and compliance.

CPA Canada actively engages in the development and amendment of accounting and assurance standards as well, particularly those related to sustainability.

Through various committees, including those focused specifically on the interests of SMPs, CPA Canada engages with CPAs nationally to provide feedback on standards and regulations. This engagement includes direct outreach to gather input on potential proposals, such as accounting requirements for goodwill and intangibles. CPA Canada’s response to proposed standards, like CSSA 5000 for sustainability assurance engagements, underscores the need for interpretive guidance to support consistent application, especially for smaller organizations.

By providing these tools and guidance, CPA Canada empowers SMPs to maintain operational excellence and effectively support the needs of SMEs.

Helping CPAs help small and medium-sized businesses

The challenges facing SMEs are sizable and multi-faceted. However, the support provided by CPAs in navigating the complexities of today’s economic environment ensures that these enterprises can achieve their priorities while contributing positively to their communities and to the overall economy.

As the decision-making and leadership skills CPAs provide beyond financial management are increasingly in demand, CPA Canada is here to ensure CPAs always hold an essential role as trusted advisors and leaders.

In a business environment that is more global and fast-paced than ever, CPA Canada ensures those CPAs who are part of the national body have access, knowledge and influence at every level of financial governance. We help CPAs supporting SMEs to strengthen and scale their firms.

CPAs who are part of the national accounting body enjoy access to exclusive guidance, tools and templates, a network of technical experts, and input and representation giving them voice in national advocacy matters that are important to SMEs.

After all, becoming a CPA is not just a career choice; it’s admission to a global network of thriving professionals.

Together, we make the profession stronger.

That’s why we believe it’s so important that we offer CPAs in Quebec and Ontario a choice to remain part of CPA Canada after their regulators withdraw on Dec. 20. Sign up here to receive 15 months of membership for the price of 12.

For more on CPA Canada visit cpacanada.ca.