Canada's Accounting Top 30 for 2016

The Bottom Line April 2016 FOCUS 13

Firms prosper amid economic challenges

By GUNDI JEFFREY Young, notes that “2015 was a espite a challenging transformative year for our profes- economy — courtesy of a sion. Despite a challenging Dplummeting Canadian economy, our team posted fantastic dollar, low oil prices and a resulting results and saw encouraging downturn in the western provinces growth in some key areas. A big — the country’s accounting profes- part of our success had to do with sion continued to prosper. Firm understanding and helping our cli- leaders agree that the positive ents adapt to new market dis- results are largely due to major ruptors. For example, we’re seeing investments they have made in technology start-ups competing strategic priority areas in recent directly with major banks and years to advise clients dealing with retailers, something that we weren’t the challenges of the future. seeing a few years ago. Our ability “Overall, 2015 was a good year to stay ahead of the curve helps us for the accounting profession,” to meet our clients’ evolving needs says KPMG CEO Bill Thomas, “as and continue to grow despite it continued to adjust to an increas- market challenges.” ingly complex environment shaped Those market challenges by changes to regulations, global- include increased global and ization and technology advances national regulation for firms and — all of which can be considered their clients, a changing audit both challenges and opportunities report, the impact of new audit for the industry.” regulation in Europe on Canadian “The challenging economic clients, increasing regulatory con- environment and changing social cerns over the upsurge in con- agenda have provided us with great sulting areas for firms – the major opportunities to advise clients,” contributor to revenue in recent competitive dynamic in the audit career options available to them to fall, nearly three quarters of Can- agrees Bill McFarland, PwC’s years – and increasing competitive market today continues to put obtain designations and relevant adian executives reported they had CEO. “Our success is built on the pressures. immense pressure on people in training.” M&A plans for the next year. That significant investments we’ve BDO’s CEO Pat Kramer notes particular and also profitability, On the plus side, says Henry, was up from only 24 per cent a made in transforming our business that, “while advisory services have which we believe really challenges transactions are doing well. year earlier.” in recent years, particularly in tech- been the growth engine in our pro- the long-term sustainability from “Canada is bullish in its pursuit of According to Deloitte CEO nology and through acquisitions fession, fee pressures for core an industry perspective.” Not only acquisitions, especially as com- Frank Vettese, growth was also and catalyst hires, which provide audit, accounting and tax compli- that, he adds, the firms are also panies in Alberta’s distressed oil brisk in areas such as technology new skills and services to meet ance services continue.” facing increased competition for patch address balance sheet pres- consulting, business risk, data ana- changing market demands.” Phil Noble, the outgoing CEO talent “as university graduates have sure. Our latest Capital Confidence Trent Henry, CEO of Ernst & of Grant Thornton, thinks that “the new and significantly expanded Barometer confirms this — in the See Business on page 20 BDO leads Top Seven growth Editor’s note: BDO Canada saw the “Our focus for the year was bolstering 51-103, Continuous Disclosure and Gov- largest revenue increase among the Top our existing footprint for our core business ernance Obligations for Venture Issuers, Seven firms in Canada. and looking to advisory firms as opportun- which came into effect June 30, ities to expand our service offering,” said 2015. “With our help, our venture issuer ew BDO CEO Pat Kramer Kramer. “This was accomplished by com- clients are considering whether to reduce explains that 2015 was another pleting mergers in Montreal, Kitchener- their disclosure burden and implement Nyear of steady growth. “Our Waterloo, London, the Greater Toronto those amendments or to continue to pro- growth was largely a result of expanding Area, and strengthening our IT advisory vide their current level of disclosures.” our advisory services, merger and acquisi- and forensic accounting services. Overall, BDO won the 2015 Network of the tion activity, along with modest growth in we added more than 250 partners and staff Year award at the London-based Inter- our core assurance and taxation services.” that have deepened our industry experi- national Accounting Bulletin awards. This BDO achieved a 9.3 per cent increase over ence and expanded our service offerings.” award, notes Kramer, “is a great accom- the prior year, giving it — by a small One important initiative from the Can- plishment, recognizing our active and margin — the biggest growth among the adian Securities Administrators also aggressive growth strategy in key markets, Top Seven firms in Canada. helped drive growth, National Instrument while maintaining a high focus on quality.”

Rank by Revenue Revenue Partners/ Professional Revenue per Number Revenue splitting Revenue 2015 change Principals Staff professional of offi ces A&A/MAS/ 2015 2014 Association/Year End/ Head Offi ce (‘000) (%) (+/-) (+/-) staff tax/other 11 Deloitte LLP / May 30, 2015 / Toronto 2,088,000 8.8 886 (+18) 5,626 (+189) 371,134 56 (+1) N/A 22 KPMG LLP / Sept. 30, 2015 / Toronto 1,324,162 4.0 669 (-5) 3,902 (+109) 339,355 37 N/A 33 PricewaterhouseCoopers LLP / June 30, 2015 / Toronto 1,290,000 5.0 533 (+13) 4,381 (+182) 294,453 27 N/A 4 4 Ernst & Young LLP / July 3, 2015 / Toronto 1,111,000 9.0 356 (+2) 3,283 (+216) 338,410 16 (-1) N/A 5 5 Grant Thornton Canada 1 / December 31, 2015 / Toronto 597,000 3.3 378 (-17) 2,702 (-258) 220,947 143 (+8) N/A 5 6 MNP LLP / December 31, 2015 / Calgary 597,000 9.1 412 (+34) 1,256 (+162) 475,318 60 (+1) N/A 7 7 BDO Canada LLP / December 31, 2015 / Toronto 534,000 9.2 442 (+29) 2,382 (+174) 224,181 118 (+6) N/A 88 Collins Barrow / Dec. 31, 2015 / Toronto 213,500 6.2 238 (+11) 858 (+34) 248,834 50 (+3) N/A 9 9 Richter / December 31, 2015 / Montreal 101,900 4.6 61 (-2) 417 (+11) 244,365 3N/A 10 10 Mallette / August 31, 2015 / Québec 71,781 6.9 75 (+3) 650 (+233) 110,432 28 (+3) 60/15/20/5

1 Includes Grant Thornton LLP and Raymond Chabot Grant Thornton (Montreal) 14 FOCUS The Bottom Line April 2016

Deloitte KPMG PwC Canada eloitte continues to hold top spot in the Top 30 rankings PMG produced very strong bottom line numbers wC has seen tremendous progress on all of its priorities with 2015 top line growth of close to nine per cent, last year, holding its spot at second place in the Top in fiscal 2015. CEO Bill McFarland says revenues grew Dalong with solid profitability, says CEO Frank Vettese. K30 rankings. “Contributing to our success,” says Pby more than five per cent, “with growth across all parts “We believe we’ve captured market share, particularly in our CEO Bill Thomas, “was a particularly strong performance of our business. The challenging economic environment and advisory services, where we saw double-digit growth” in tech- from our tax practice, as well as growth in a number of our changing social agenda has provided us with great opportun- nology, business risk, data analytics, cybersecurity and human strategic growth priority areas, reflecting investments we ities to advise clients.” capital consulting. made over the past few years.” PwC’s success is built on the significant investments made Over 2015, says Vettese, “we’ve focused on adding ser- KPMG’s audit practice faced continuing fee pressure and in transforming its business in recent years, he adds, “particu- vices that enrich our ability to address more complex client slower capital market activity, which “had an impact on our larly in technology and through acquisitions and catalyst hires, problems and, at the same time, started to expand the reach public company audit business, but that was offset by con- which provide new skills and services to meet changing of our Canadian expertise into other geographic markets, tinuing strength and increasing market share in the private market demands. We also had a number of brand-defining particularly serving our clients in the Americas.” company enterprise practice.” wins in assurance — including the audits of RBC and Sobeys One example is Deloitte’s acquisition of Asset Perform- In response to evolving client needs, notes Thomas, KPMG — which will favourably impact our revenues next year.” ance Group, which “brings outstanding expertise in the area also continued to build service offerings, including further A cornerstone of PwC’s global strategy is to become the of asset efficiency in capital-intensive industries.” investments in cybersecurity and forensic technology, and sub- leading technology-enabled professional services firm, he Also popular, Deloitte’s Cyber Intelligence Centre offered stantial investments in financial services advisory and data ana- points out. “These tools allow us to work more collaboratively, a 24/7 managed security services solutions that can quickly lytics, which “have put us in a position to deliver on a number which is creating a better experience for our clients and people. monitor, detect and respond to cyber threats rapidly and deci- of very large transformation projects.” The firm continues to “We are also reimagining how we deliver our services, sively so clients can manage risks and stay ahead of attackers. invest in enhancing the quality of audits. “I’m pleased to see including through strategic alliances with a number of best-in- The firm is also leveraging the power of analytics with its how our teams across the country have embraced initiatives class organizations, such as Google, Workday and Salesforce. Threat Intelligence & Analytics team, bringing together top such as Lean in Audit as ways of continuously improving and com,” McFarland said. global cyber risk talent with predictive intelligence powered delivering a high-quality, value-adding audit,” Thomas said. With 23 per cent revenue growth in fiscal 2015, consulting by best-in-class automated intelligence sources. The firm saw continued strong growth in its Atlantic continues to be a great success story. “Our clients tell us they A big coup, says Vettese, “was moving our Montreal Canada practice, “reflecting growth from the investments in face unprecedented changes and disruptive threats to their people into an amazing new facility and preparing for a sim- our practice in Newfoundland and Labrador.” It re-estab- business, and we see great opportunities to add value for our ilar Toronto move in 2016. This puts 4,600 of our people into lished its Quebec City practice in 2013, initially with an clients in digital, cloud, cyber security, and big data and ana- one of the most advanced and collaborative workspaces in advisory practice, and continued to expand that office by lytics offerings,” he adds. the country. My belief, supported by feedback from our cli- adding some outstanding audit and tax partners and staff in Tax is also experiencing strong growth in the firm’s Immi- ents and our people, is that we are creating destinations in the 2015. “We also invested in our restructuring practice in Cal- gration, U.S, and M&A practices. “The debate about com- market that are strengthening connections and inspiring gary, and have an excellent team in place to serve client panies paying their fair share of tax has resulted in many busi- innovative ways of working.” needs in Western Canada and beyond.” nesses reviewing their tax structures.”

Rank by Revenue Revenue Partners/ Professional Revenue per Number Revenue splitting Revenue 2014 change Principals Staff professional of offi ces A&A/MAS/ 2015 2014 Association/Year End/ Head Offi ce (‘000) (%) (+/-) (+/-) staff tax/other 11 13 Crowe Soberman LLP / December 31, 2015 / Toronto 40,360 7.6 26 108 (+38) 373,704 1 59/8/27/6 11 11 Crowe MacKay LLP / December 31, 2015 / Vancouver 38,400 -0.3 34 (-1) 165 (+9) 232,727 8 67/7/18/8 13 11 HLB/Schwartz Levitsky Feldman / Dec. 31, 2015 / Montreal 38,000 -1.3 49 (+1) 182 (+11) 208,791 6 70/4/16/10 14 14 Welch LLP / December 31, 2015 / Ottawa 30,543 8.6 40 (+2) 142 (+22) 215,092 12 65/2/26/7 15 15 Ginsberg Gluzman Fage & Levitz, LLP / Dec. 31, 2015 / Ottawa 25,600 11.5 12 (+1) 82 (+2) 312,195 9 29/2/20/49 16 17 PSB Boisjoli LLP / December 31, 2015 / Montreal 24,983 13.7 21 (+1) 93 (+21) 268,634 1 50/32/18/0 17 19 Manning Elliot LLP / December 31, 2015 / Vancouver 21,860 9.3 25 (-1) 102 (-25) 214,314 2 76/0/20/4 18 21 Zeifmans LLP / January 31, 2015 / Toronto 20,900 9.4 14 (+2) 76 (+1) 275,000 1 (-1) 53/15/32/0 19 20 Millard Rouse & Rosebrugh LLP / July 31, 2015 / Brantford, Ont. 20,081 5.1 23 (+2) 73 (+1) 275,082 7 55/15/28/2 20 22 DMCL LLP / December 31, 2015 / Vancouver 19,700 6.1 19 87 (+4) 226,437 3 68/1/31/0 The Bottom Line April 2016 FOCUS 15

EY Grant Thornton Canada MNP e had another successful fiscal year, especially ccording to outgoing CEO Phil Noble, “2015 con- e achieved our targets for 2015 and are given the challenging growth environment tinued the trends we have seen over the past few years, satisfied,” explains CEO Jason “Wtriggered by increased competition, depressed Areflecting the successful implementation of the firm’s “WTuffs. “Some areas grew more than others energy prices and a decline in the Canadian economy,” says market strategy. While strong growth in our traditional audit — some services, some geographic regions and some CEO Trent Henry, whose firm grew nine per cent. “We also practice continues to be a challenge, we have seen double- client groups. We believe we continued to move our brand eclipsed the $1 billion mark in total revenue for the second digit growth in tax, continued growth in our core privately forward.” straight year, a new feat in our 151-year history.” held business market share and growth in the advisory com- Given the economic struggles many companies are Key drivers of EY success were what Henry calls “big ponent of our services.” dealing with, “we are happy to say that all of our geo- bet investments,” which paid off handsomely. “An increased Overall firm growth was modest, primarily due to the graphic regions grew. Mergers in B.C. certainly contrib- focus on delivering sector-specific knowledge helped us challenging economic environment, “but with an increase of uted to our growth there, and our organic growth in realize strong increases in private equity, telecommunica- 11.7 per cent in tax services — particularly tax specialty areas Ontario was great. We were able to attract a lot of great tions and retail.” Transactions did well, he adds. “Canada is — and 5.3 per cent in privately held business services, our talent, and great talent keeps us moving forward,” to the bullish in its pursuit of acquisitions, especially as companies firm is well positioned to continue to build in the most profit- point that MNP is now neck and neck with Grant Thornton in Alberta’s distressed oil patch address balance sheet pres- able and strategic areas of our business.” in the rankings. sure. Entrepreneurs, too, are looking for opportunities amid The firm continued to pursue strategic acquisitions in MNP’s geographic coverage expanded to include the otherwise challenging market.” 2015, completing transactions in British Columbia, New Prince George, the largest city in northern B.C. MNP also In pursuit of talent, Henry notes, “our culture and com- Brunswick and Newfoundland and Labrador. “We remain transacted its largest merger to date with KNV, the eighth mitment to building a better working world helped us attract, focused on combining with successful firms with strong largest accounting firm in B.C. engage and retain the best the market has to offer. Our pro- like-minded partner groups who will contribute to our “As we go forward,” says Tuffs, “we will continue to grams, such as an industry-leading focus on diversity and overall success in the future. This strategy has resulted in look at adding strategic pieces — an IT consulting prac- inclusiveness, culminating in gender parity in partner pro- exceptional growth in acquired fees, resulting in shared tice here, a forensic practice there, etc. Ottawa will con- motions this year, and top rankings in external benchmark financial rewards for both the vending owners and our tinue to be a focus for us, and we would like to add a few surveys, including Great Place to Work and Universum, broader partner group.” more missing pieces in Southwest Ontario and then start make us a desirable place to have a career.” Noble is proud that Grant Thornton was named one of on Atlantic Canada.” Henry is particularly proud of having three partners — Canada’s Best Workplaces for the eighth consecutive year. One highlight of the year was Toronto Blue Jay Kevin Fiona Macfarlane, Elise Rees and Colleen McMorrow — “We take great pride in our ability to provide our people with Pillar’s spectacular catch over the MNP advertising sign included in the Women’s Executive Network 2015 Canada’s a tremendous culture in which to work and thrive. We believe, in left field at the Rogers Centre in Toronto on April 15 Most Powerful Women. “Fiona, Elise and Colleen’s accom- foundationally, that when the emotional quotient (EQ) and IQ against the Tampa Bay Rays. The catch was awarded the plishments are varied and impressive — they are great role are in relative balance, magic happens from a cultural per- “play of the year” by Blue Jays fans and has been seen and models, and examples of why we need more women in spective. That magic, or our people experience, then trans- replayed by millions of people across North America. leadership roles.” lates directly into delivering an exceptional client experience.” “That certainly got us lots of attention last year.”

27 25 Durward Jones Barkwell & Co. LLP / Dec. 31, 2015 / St. Catharines, Ont. 16,951 0.5 27 (+3) 87 (+1) 194,839 5 (-1) 48/14/29/9 28 29 Fuller Landau LLP / December 31, 2015 / Toronto 16,328 6.3 17 (+1) 55 (+5) 326,560 1 60/3/14/23 29 -- Crowe BGK / December 31, 2015 / Montreal 15,826 8.2 20 (+1) 67 (+4) 236,209 2 48/22/29/1 30 30 RLB LLP / December 31, 2015 / Guelph, Ont. 15,404 4.6 10 (+1) 68 (+21) 226,529 3 62/15/23/0 16 FOCUS The Bottom Line April 2016

Prince Edward Island expected to lead the east

By DONALEE MOULTON after that as big developments anada’s three Maritime wrap up. “Our growth forecast for provinces are looking to a 2017 is 1.3 per cent, which is well Cbrighter economic horizon below our 2.7 per cent call for in 2016, but even with sunnier days Canada,” said Walsh. ahead, Nova Scotia, New Bruns- Accountants on Canada’s East wick and Prince Edward Island are Coast will be used to economic ups still expected to lag behind Canada and downs, and business will as a whole in terms of growth. respond to the fiscal reality of the The remaining East Coast prov- province. However, a new wrinkle ince, Newfoundland and Labrador, has been added to the equation: the is struggling to stay afloat finan- war for talent. Nova Scotia’s job cially after oil transformed it from market can be a tough one for a have-not province to a have prov- skilled professionals, and salaries ince to one on the verge of bank- often lag behind elsewhere in the ruptcy. country. As a result, youth often “The economy is causing a lot leave for greener pastures. of stress, not only on individuals “Nova Scotia’s job market is but also on business,” said Gerard not great for youth or newcomers; Fitzpatrick, co-owner of Fitzpatrick it is a difficult job market to break & Company Chartered Account- into,” said Jacob. “Life is great for ants in Charlottetown. “The strain those who can find work and Nova on business is pushing everyone. Scotia offers a lot, but meaningful Banks are being cautious.” work is the missing piece of the The Conference Board of puzzle. While there may be other Canada forecast a relatively low challenges, the demographic growth of 1.3 per cent for Nova organization, is not as optimistic Key drivers for Nova Scotia’s than $15.1 billion, an all-time issues stand head and shoulders Scotia in 2015 and a much stronger about the year ahead. “While economy over the next two years high. In December, Finance Min- above the rest.” recovery this year at 2.5 per cent. Halifax is showing strong growth, are expected to be non-energy ister Randy Delorey unveiled new The region is turning to immi- The predicted economic upturn is the rest of the province is not, and exports and manufacturing, espe- deficit numbers. The province is grants to help resolve some of the due in large part to what should be this will put a damper on [these] cially shipbuilding. However, said now predicting a deficit of $241 personnel issues. Fitzpatrick’s a full year of steel cutting at the predictions,” said Paul Jacob, the Gerard Walsh, an economist with million, more than double the most recent hires in P.E.I., two Irving shipyard, which won the partnership’s economist and policy RBC Economic Research in $97.5 million forecast in the full-time employees and one stu- 30-year, $25-billion federal con- analyst. “Real GDP will continue Toronto, “the government will be a spring budget. dent, have all been immigrants. tract to build the next fleet of to grow, the economy will get drag as it grapples with a budget In addition, the economy will “Diversity is part of our process,” combat ships for the Canadian better, but the question is how deficit and looks to contain public be further constrained by the con- he noted, “but good people are navy. much. My outlook is that the num- sector wage growth, which will struction industry. While Nova always a problem to get.” The Halifax Partnership, the bers will not be particularly impede consumer spending.” Scotia will add to growth in 2016, city’s economic development impressive.” Nova Scotia’s debt load is more RBC predicts it will likely decline See Deficits on page 17

22 Allinial Global 3 / December 31, 2015 / Atlanta 114,563 -11.5 119 (-7) 602.5 (-23.5) 190,146 28 (-2) 63/10/22/5

3 3 Crowe Horwath International 4 / Dec. 31, 2015 / New York City 95,437 2.2 84 344 (+56) 277,433 13 60/11/23/6

4 4 BHD Association 5 / December 31, 2015 / Vancouver 74,331 -16.1 79 (-12) 284 (-81) 203,647 17 (-1) 65/6/25/3

5 6 Nexia Canada 6 / December 31, 2015 / Toronto 63,500 15.3 64 (+5) 250 (+33) 254,000 8 (+1) 64/11/23/2

6 10 Moore Stephens International 7 / December 31, 2015 62,900 131.5 58 (+32) 259 (+135) 242,857 6 (+2) 61/10/28/1

7 7 PrimeGlobal 8 / May 31, 2015 / Atlanta 50,685 -2.2 39 (-9) 270 (+7) 187,722 5 71/4/22/3

8 5 BKR International 9 / June 30, 2015 / New York City 46,000 -23.3 46 (-5) 433 (+4) 106,236 21 56/0/31/13 9 8 EPR Canada Group Inc. / Dec 31, 2015 / Maple Ridge, B.C 36,796 -18.8 54 (-10) 238 (-11) 154,605 34 (-7) 60/10/23/7 10 9 Porter Hetu International / December 31, 2015 / Toronto 33,000 -5.1 64 (+3) 214 (+39) 116,197 38 59/6/27/8 11 11 The AC Group / October 31, 2015/ Amherst, N.S. 25,893 8.6 36 (-8) 246 (+15) 105,256 24 (+4) 61/21/17/1

2 DFK Canada Inc. includes the fi rms of KNV Chartered Accountants (Surrey, B.C.), Kingston Ross Pasnak LLP (Edmonton), Kenway Mack Slusarchuk Stewart LLP (Calgary), Pope & Brookes LLP (Winnipeg), Davis Martindale LLP (London, Ont.), Taylor Leibow LLP (Hamilton, Ont.), Ginsberg Gluzman Fage & Levitz LLP (Ottawa), Levy Pilotte LLP (Montréal), Dallaire Forest Kirouac CA, s.e.n.c.r.l. (Québec City), Teed Saunders Doyle & Co. (Saint John, NB), WBLI Chartered Accountants (Halifax), MRSB Chartered Accountants (Charlottetown), Noseworthy Chapman Chartered Accountants (St. John’s) and Williams & Partners (Markham). 3 Allinial Global’s Canadian fi rms include Pivotal LLP (Red Deer, Alta.), KBH Chartered Accountants (Edmonton), Young Parkyn McNab LLP (Lethbridge, Alta.), Smythe LLP (Vancouver), Scarrow & Donald LLP (Winnipeg), Durward Jones Barkwell & Company LLP (St. Catharines, Ont.), Kraft Berger LLP (Markham, Ont.), RLB LLP (Guelph, Ont.), Virtus Group LLP (Saskatoon), Howie & Partners (Windsor, Ont.) 4 Crowe Horwarth International’s Canadian fi rms include Crowe Soberman LLP (Toronto), Horwath HTL (Montreal), Bessner Gallay Kreisman (Montreal) and Crowe MacKay (Vancouver) 5 BHD Association fi gures include fi rms D & H Group LLP (Vancouver); Buchanan Barry LLP, (Calgary); Vine & Partners LLP (Hamilton); Benoit, McGraw & Paulin (Tracadie-Sheila, NB); Thomson Jaspar & As- sociates (Saskatoon); PKBW Group (Winnipeg); Millard, Deslauriers & Shoemaker LLP (Toronto); Hyatt Lassaline, LLP ( Windsor); Marcil Lavallée (Ottawa); Choquette Corriveau (Quebec City); Nadeau Picard & Associés (Grand Falls, NB); Hilborn LLP (Toronto); Yaremchuk & Annicchiarico (Edmonton) 6 Nexia Canada fi gures include fi rms Davidson & Company LLP (Vancouver), Zeifmans LLP (Toronto), Nexia Friedman LLP (Montreal), Perreault, Wolman, Grzywacz & Co. (Montreal), Lyle Tilley Davidson (Hali- fax), John Geib, CA (Calgary) and Andrews & Company (Ottawa) 7 Moore Stephens North America’s Canadian fi rms include DMCL LLP (Vancouver), Mowbrey Gil LLP (Edmonton), Demers Beaulne s.e.n.c.r.l. (Montreal) and Segal LLP (Toronto) 8 PrimeGlobal fi gures include the fi rms of Manning Elliott LLP (Vancouver), Clarke Henning Group (Toronto) PSB Boisjoli LLP (Montreal) and Shimmerman Penn LLP (Toronto) 9 BKR International’s Canadian fi rms include Blanchette Vachon CPA (Sainte-Marie), Lohn Caulder LLP (Vancouver), Villeneuve Venne CA, S.E.N.C.R.L. (Montreal), Welch LLP (Ottawa), SF Partnership LLP (Toronto) The Bottom Line April 2016 FOCUS 17

Deficits ‘not sustainable’ in Newfoundland

Continued from page 16 review has now come to an end unprecedented deficits forecast in is projected to drop by 22,000 and $589 million in savings and the December 2015 economic and people. Of those remaining, In New Brunswick, the eco- new revenue have been identified fiscal update. roughly 29 per cent will be over the nomic landscape looks remarkably in a diverse array of areas ranging “The province recorded a deficit age of 65, compared with 18.3 per similar to neighbouring Nova from reducing visitor information of $986 million in 2014-15, the cent currently. Having fewer young Scotia. RBC anticipates the prov- centres to increasing public school highest in our history,” Paddon people and more seniors signifi- ince’s economy will grow by 1.2 class sizes. said. “Additional deficits, totalling cantly stresses the economy and per cent this year and 1.5 per cent Canada’s smallest province may $12.2 billion, are forecast from that pressure will only continue to in 2017. “This puts it well down be its most buoyant. The Halifax 2015-16 to 2020-21, an amount escalate. the provincial growth rankings in Chamber of Commerce, which greater than the province’s entire For accountants, the Atlantic both years, eighth and seventh, contends in a new report that the net debt at March 31, 2015. Defi- region’s current economic realities respectively,” Walsh said. current state of Nova Scotia’s cits of this magnitude are not sus- translate into business as usual. One bright light for New economy needs to be approached tainable.” “The demand on our profession is Brunswick over the next year is with “alarm,” points to Prince Indeed, when compared to the very high,” said Fitzpatrick, a char- exports, and forestry is expected to Edward Island as an example of actual size of the provincial tered professional accountant. rebound in response to a lower what can be done to bolster a prov- economy, the roughly $2 billion However, he pointed out, the risk Canadian dollar and demand from incial economy. According to the deficit forecast for 2015-16 will be of bills not being paid may be the U.S. housing market. New chamber’s pre-budget report, over more than 3.5 times greater than equally strong. mines are also being commis- the past few years P.E.I. has not the next highest province. Confidence is also an issue. The sioned, which will spell good news succumbed to the economic stag- FITZPATRICK “Dealing with the anticipated oil crisis created what Fitzpatrick for the sector. nation and decline that have deficits will require hard choices calls a “Chicken Little” reaction Meanwhile, the provincial gov- plagued Nova Scotia and New was not that far behind Ontario,” that will affect all residents of with businesses concerned the eco- ernment is paving the way for belt Brunswick. Since 2010, its the report states. Newfoundland and Labrador,” said nomic sky was falling. Although tightening. Over the past year the economy has grown by 6.8 per cent The Atlantic province hardest Paddon. Accountants can antici- oil prices have stabilized, he noted, New Brunswick government has overall and 3.5 per cent on a per- hit economically is undoubtedly pate being among those affected. the attitude of uncertainty remains been engaged in what it calls a capita basis. Newfoundland and Labrador. In All four East Coast provinces and makes companies unwilling to strategic program review to help “Those numbers are certainly his most recent report Auditor are facing a common and dire situ- take risks and invest in opportun- identify savings and revenue initia- not in the same league as Canada’s General Terry Paddon raised ser- ation: an aging demographic. Over ities. “People are less pessimistic, tives in order to eliminate the cur- fastest growing provinces, but ious doubts about the province’s the next two and a half decades, for but it will take a lot for them to get rent $453 million deficit. The P.E.I. grew faster than Quebec and ability to sustain the level of example, Nova Scotia’s population their hands out of their pockets.”

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Alberta firms try to ride out storm

By GEOFF KIRBYSON repair and upkeep,” he says. ou know times are tough The other piece that a sales tax when Albertans look back would catch is the underground Yto a year ago and remin- economy. isce about the good old days. People who don’t report their You know, when the price of a ill-gotten gains on a personal tax barrel of oil was a healthy — return often spend most of their cough, cough — $50? money on nice clothes, fancy cars Having seen the south side of and other luxury items and while $30, Bryce Eidsness, managing Ottawa gets its cut through the partner of Calgary-based Kenway GST, Alberta receives nothing. Mack Slusarchuk Stewart LLP, Eidsness, however, doesn’t admits he’s more concerned about believe a PST will become a the future than he was 12 months reality in Alberta any time soon. ago. Or ever. The firm’s clients in the oil “The new government has and gas industry, either directly or already pushed through some tax indirectly, have been taking it on changes, which tended to be the chin, both in terms of profit- focused on higher income earners. ability and staffing levels. Eid- To bring in a PST would be polit- sness says he’s thankful for the ical suicide when a lot of people firm’s bustling office in Canmore, don’t have jobs,” he says. which has more of a hospitality “If you view taxes as a knife, focus, and has benefited from the they’ve stuck one into high low dollar and a good ski season income earners. If they do a PST, in and around Banff. they’ll stick a knife into every But you can’t run an single person in the province.” accounting firm on fresh powder Eidsness says the advice that and good ski conditions alone so “They’re trying to budget out how long they can maintain its professionals are able to pass in an attempt to keep its costs in on to clients is taking on a whole line, KMSS has altered its human their cash position, how many more months or years that new level of importance because resources strategies. As a mid-tier capital is far more difficult to firm, it typically hires eight to 10 they can survive. They’re running a few models (on) where come by than it was a year or two new employees a year but they’ve ago. cut that in half now. And as people they’ll be if things go up or down from now.” The big banks and credit leave the firm for whatever unions are “very reluctant” to reason, they’re often not replaced. Justin Friesen, BDO Canada lend money to anybody remotely “We’re letting natural attrition close to the oil and gas business. take its toll,” he says. things go up or down from now,” watching their expenses more Rachel Notley’s strategy of “One of our partners told me Many accountants are being Friesen says. closely than they ever have which raising income taxes to fill the recently, ‘I feel like I have scars asked to do the kind of nitty-gritty Even though Edmonton isn’t means the bills going out this year gaping hole in government cof- on my back from the banks.’ The work that clients considered a nearly as impacted by the oil and are, at best, at the same rate as last fers. The simplest way, he banks want to reduce their port- hassle during the boom times. gas business as Calgary, revenues year. About the only things that believes, is to implement a con- folios in the oil and gas business,” Justin Friesen, Calgary-based at accounting firms in the prov- are going up are the salaries of its sumption tax. Yes, a PST. he says. national leader of the oil and gas ince’s capital are still being articling students. Before any lynch mobs have Another area where his firm group for BDO Canada LLP, says squeezed. “As they progress and become time to get organized, Ladha says can provide value is with clients’ many clients are now interested in Shabir Ladha, a partner at more valuable to us, they expect he thinks it could be structured so lease arrangements. claiming the tax credits that KBH Chartered Accountants, pay raises,” he says. that Albertans pay the same KMSS has one client that they’re eligible for when investing says profits at his 38-person firm Clients that are directly tied to amount of overall tax as they used reduced its workforce from 45 in innovation. have declined by 7 to 10 per cent oil and gas have pulled back from to but with lower income tax. people down to five and from “In the past, they haven’t both- 10,000 square feet to 1,500 square ered doing it because they were feet. too busy with day-to-day stuff,” “They got into some serious he says. negotiations with their landlord to Nobody in business likes vola- figure out a way to deal with it. tility and the topsy-turvy ride of It’s not only the loss of revenue oil prices is partly to blame for streams but (the size of) some of the relative dearth of mergers and their fixed costs. We felt people acquisitions work. It’s not that who had solid balance sheets there aren’t a significant number were in good shape but if they’re of potential buyers in the market bleeding their assets by having to but by the time negotiations have cover their fixed costs, they’re not drawn to a close, too many eco- (in good shape),” he says. nomic variables have changed Just how bad is the job market drastically from where they were in Alberta? Eidsness says an at the beginning and everything employee of his lives on a street has to start over from scratch. where a member of six consecu- There’s no question that many tive households lost their job a clients are feeling a lot of finan- year ago and none of them have cial pressure, particularly with been able to find employment cash flows being so tight. FRIESEN LADHA EIDSNESS since. “They’re trying to budget out The spouse of another how long they can maintain their over the past year as he has held tax planning and other services “What you’ll pick up is those employee works at Home Depot cash position, how many more the line on fees and provided unless they can result in a clear that travel to Alberta and don’t and when the home renovation months or years that they can sur- some modest wage increases to and immediate savings or benefit, pay taxes. They shop here, use our giant had a trade show and was vive. They’re running a few staff. he says. roads and our infrastructure but looking to fill two positions, 700 models (on) where they’ll be if All of his firm’s clients are Ladha disagrees with Premier don’t contribute to the cost of people showed up. The Bottom Line April 2016 FOCUS 19

Rest of west showing zest

By GRANT CAMERON on their accountants more so there hile plunging oil prices is certainly a lot more work for have cast a pall over CPAs because of that,” he says. WAlberta’s economy, the In Saskatchewan, which had a other western provinces are tough year in 2015 due to the slump expected to be on solid footing in in oil prices, the diversity of the 2016. economy is expected to help the British Columbia, Manitoba and province rebound. Saskatchewan are not without their Brian Turnquist, partner at challenges, but growth is antici- Thomson Jaspar in Saskatoon, says pated for all three this year, the economy has cooled off from according to the Conference Board where it was two or three years ago, of Canada. with reduced employment and B.C. is going full guns and is investment, and in the long term the banking on a strong construction province is going to need higher oil industry to propel it to growth of prices to recover. better than three per cent in 2016 He notes the office leasing and 2017, making it the fastest market has also weakened because growing province. many engineering firms moved out. Manitoba is chugging along “I still believe, from the people nicely with growth of 2.5 per cent that I’ve talked to, that there’s a expected in 2016, led by healthy sense of optimism for the future performances from the construc- because in Saskatchewan we have a tion, manufacturing and service far more diverse economy.” industries. Saskatchewan has traditionally Saskatchewan, meanwhile, is relied on agriculture but that is no expected to bounce back from a longer the case, says Turnquist, as recession with a two per cent growth the oil, potash, uranium, gold, dia- this year, due mostly to a rebound in “We’ve got a huge bonanza going with the film industry, mond and manufacturing sectors, non-residential construction. along with the tourism and research- Richard Rees, president and which is a big thing in British Columbia.” based industries, also create CEO of CPA British Columbia, says employment. unemployment is declining and the Richard Rees, CPA British Columbia The Conference Board notes that sagging loonie is helping boost the solid growth in construction is province’s tourism and film with the decline in the Canadian economy but manufacturing is also doesn’t impact the overall expected to be the main driver of industry. dollar.” big. Transportation is another one economy.” growth for Saskatchewan’s “If you’re in Vancouver, things It’s a double blow for junior and agriculture is looking up as Jones says the province’s housing economy over the next two years. seem to be humming along quite mining companies, says Rees, well. construction sector struggled in Investment in power generation and well.” because they’re paying more for “Overall, it’s been a good couple 2015 but now appears to be turning the potash industry, as well as the The province relies heavily on equipment at a time when resource of years for Manitoba. There’s around. public infrastructure program of the tourism and the film industry and prices are also low. population growth, economic There was a lot of condominium provincial government, are also both bring in a lot of money, says In Manitoba, the construction, growth and we’re chugging along. inventory, he says, so clients that expected to generate strong growth Rees. manufacturing and service indus- There’s certainly challenges, of were in industries that supplied new for the province. “We’ve got a huge bonanza tries are set to post significant gains course, but it’s been good.” housing, like drywall and roofing, Uranium production is also set to going with the film industry, which and boost employment by 1.3 per According to the Conference suffered last year but are now ramp up, thanks to the opening of is a big thing in British Columbia,” cent in 2016. Board, Manitoba’s manufacturing recovering. the Cigar Lake uranium mine in the he says. “The studios are fully Mark Jones, partner at Olafson sector is expected to grow by 3.4 Jones says his accounting firm, northern part of Saskatchewan in booked and there’s a lot of produc- & Jones in Winnipeg, says that, for per cent in 2016. Construction is as he suspects others are around the 2014. tions going on.” The agriculture sector, which The province’s construction suffered from poor yields due to a industry is expected to advance “I think construction drought that hit parts of Saskatch- strongly and could get an added is going to lead the economy ewan last year, is expected to boost if regulatory approval is recover this year, with anticipated granted this spring for a $36-billion but manufacturing is also big.’’ growth of 10.4 per cent. liquefied natural gas terminal on Accounting firms in the prov- Lelu Island. Vancouver’s real estate Mark Jones, Olafson & Jones ince seem to be very busy and are market also continues to soar as upbeat about their future business local and foreign buyers fuel price prospects, says Turnquist. hikes and transactions in the single- expected to remain strong, with province, is relying on new business “There’s a certain level of con- detached home segment. growth in the sector reaching 1.4 to grow. cern out there, obviously, any time As a result, says Rees, per cent in 2016, as work ramps up He expects that due to uncer- things cool off like it has but I still accounting firms in the province on hydro projects and the provincial tainty about the overall state of the think there’s a fair bit of optimism.” seem to be flourishing. government rolls out its infrastruc- Canadian economy business clients Turnquist says the province’s “They seem to have full books of ture plan. will also be looking to their account- corporate income tax structure also business. We’re certainly seeing Jones says Manitoba, for the ants for a little more help and guid- make it attractive to business. Small solid recruitment into the student most part, is fairly insulated from ance. businesses in the province pay a rate programs as well.” the impact of low oil prices as it has “So, where there are areas that of two per cent on the first $500,000 While the outlook is positive, a fairly diversified economy. are affected by Alberta and Sas- of income while tax credits are also there are some challenges on the JONES “We do have some oil in the katchewan’s situation, we can help offered to encourage corporations to horizon for B.C. western part of the province but not them look at margins and opportun- make investments in manufacturing Rees says the sagging loonie the most part, Manitoba has been as much and we’re not as reliant on ities that may exist,” he says. and processing assets and research means that manufacturers in the unaffected by the slide in oil prices that industry,” he says. “There’s Accountants can help their cli- activities. province, which often get their and adds that the low loonie is obviously spillover, as we’re not in a ents during uncertain times, espe- “There’s a sense that there’s a equipment from U.S. suppliers, end helping the manufacturing sector. silo, and we have a number of sec- cially if they’re a business owner, by strength in Saskatchewan that didn’t up paying more so it raises the cost “The economy looks very strong tors that do business in Alberta and offering insights and revising their exist back in the ’80s and ’90s and of doing business. for Manitoba,” he says. “I think con- Saskatchewan so they’re feeling it plans and finances, he notes. we have to overcome where we’re at “It’s so much more expensive struction is going to lead the but it’s a small enough part that it “In times like these, people rely right now.” 20 FOCUS The Bottom Line April 2016

Business community nervous about future

Continued from page 13 “Allowing companies the flex- “The challenging economic environment ibility to provide investors more lytics, cyber and human capital information, that actually helps consulting. “Our growth in new and changing social agenda have provided us investors, is generally a good step. services to clients has been fuelled Appropriate ‘safeguards’ are by emerging technology, particu- with great opportunities to advise clients.” required to ensure that information larly in our cyber, digital, analytics is understandable and not used to and cloud offerings. Clients are Bill McFarland, PwC Canada manipulate otherwise generally demanding end-to-end solutions. accepted, and meaningful/compar- Our advantage has been our ability or focus they place on each issue.” “which are clear priorities for the audit engagement level, have dem- able, information.” to integrate our full suite of ser- Overall, he continues, “we see the new Liberal government and onstrated that AQI-based discus- Adds Tuffs, “many companies in vices, including in these growth audit regulatory perspectives important global topics of conver- sions between auditors and those Canada have trans-border trans- areas, in ways that actually work to between Canada and the U.S. con- sation.” In that arena, the Extractive charged with auditor oversight, actions and vice versa, so having meet our clients’ needs. Digital is a verging more than they are diver- Sector Transparency Measures Act, such as audit committees, helped to information that allows comparison great example of this, where ging. In particular, we are seeing a part of Canada’s commitment to focus dialogue on factors that using consistent information can be advanced multi-platform tech- higher degree of alignment contribute to global efforts against impact audit quality and on how valuable to certain users.” nology and design need to integrate between CPAB and PCAOB on corruption in the extractive sector, audit committees might be able to As part of CPA Canada’s enhan- with legacy systems and pro- things like what professional skep- requires businesses involved in that help positively impact audit cing audit quality initiative, the cesses.” ticism looks like in practice, the sector to publicly report on pay- quality.” protocol for having audit firms Thomas explains “we actively importance of deep work on ments made to all levels of govern- The firms view as a plus recent share certain CPAB inspection listen to our clients and invest in internal controls, specific issues ment by May 2017. FASB and IASB developments to findings with their clients’ audit strategic business areas based on like information prepared by the Also, Ontario recently amended cut down on the clutter in corporate committees went into effect last their needs. We’ve recently built entity and the extent of evidence its greenhouse gas emissions disclosures and financial reports. year. The idea was to give audit local and global expertise in cyber they are expecting to see in our reporting regulation, requiring Jason Tuffs, the new CEO of MNP, committees a better handle on the security, data and analytics, infra- engagement files.” emitters over a certain threshold to believes that “for private enterprise nature of inspection findings so structure and transformation and KPMG continues to invest in have their annual reports verified clients, simplifying the reporting they could have productive discus- this focus and commitment to building expertise in areas that its by an accredited third party. And standards should ultimately be of sions with their auditors. That client service is generating excel- clients require, notes Thomas, regulations also continue to evolve benefit to these clients. But with initiative, too, seems to have had lent results.” “which in many cases also enables in the financial services sector, respect to reporting issuers and good results. Adds Noble, “the impact of us to bring that expertise to with the aim of creating more others with third party investors, According to Tuffs, it “has technology is increasingly leading evolving risk areas that are relevant transparency within and across the constant movement towards evolved the discussions we have to innovation in service delivery to our audits, such as in informa- borders. transparency moves clients away with audit committees. Any oppor- and new services, which is great tion technology, valuations and Henry cites the Organization for from simplified accounting. Many tunity to open a dialogue with our for clients. Our people view this taxation, which are increasingly Economic Co-operation and have not adopted the simplified clients about what we do and how ongoing technology innovation as critical for effective audits. Those Development’s base erosion and rules that have already been we do it is a good thing.” very exciting and are ready to investments and resulting success profit shifting initiative (BEPS), approved.” “The protocol has opened embrace the opportunities which is completely aligned with our con- which aims to crack down on tax McFarland believes that another venue for us to share flow from it.” important information with audit Clients operate in an increasing committees about financial complex business environment, he “The impact of technology is increasingly leading reporting risks and the audit chal- explains, “often facing disruption lenges that we mutually face,” says from technology in their respective to innovation in service delivery and new services, Kramer. “We welcome the added industries, and they look to us as structure that it has provided for their advisers to help them achieve which is great for clients.” such dialogue.” growth, improve financial and Despite the many new oppor- operational performance and Phil Noble, Grant Thornton tunities of doing business, offering pursue opportunities. Our client new services and expanding their strategy is very focused on this tinuing commitment to quality avoidance internationally, updated improving the transparency and geographic and advisory foot- shift to increasing advisory needs audits, and our continuing invest- standards to change the auditor’s readability of financial statements prints, Canada’s accounting execu- of our clients.” ments in building our processes report from the International Aud- is a positive step. “It should help tives are cautious about the current And this is what concerns at and methodologies to deliver iting and Assurance Standards companies tell their stories in a year. According to EY’s latest Cap- least some regulators. In the U.S., effective and efficient audits. For Board, as well as the PCAOB and more understandable manner and ital Confidence Barometer, senior both the Securities and Exchange example, our data and analytics new requirements around the rep- make the financial information executives from around the world Commission and the Public Com- and Lean in Audit approaches are resentation of women on boards. more relevant for stakeholders.” are bracing for uncertainty over the pany Accounting Oversight Board transforming audit delivery. Inte- “We’re always keen to identify According to Kramer, “the goal next year — from volatility in have noted that advisory services grated into our audits, they add what these and other developments of these initiatives is not for finan- commodities and currencies, to are growing at a furious pace. They value for our clients, as they allow mean for our clients and for our cial reporting to provide less infor- political instability in the Euro- fear this could lead to conflict of our auditors to have a stronger own operations. For example, cli- mation, but to provide better infor- zone, to the U.S. presidential elec- interests when non-audit services understanding of clients’ complex ents need to think about how BEPS mation. It is quite common for tion. “As a result,” says Henry, are provided to audit clients. businesses and internal processes will change the global tax environ- financial statements to contain “they’re taking a measured, pru- Kramer thinks these concerns so they can spot issues earlier to ment, and we’re there to help them boilerplate information or informa- dent approach to corporate strategy may exist in Canada, too. “The help do more effective audits, navigate those considerations. As a tion on matters that are not material and are increasingly focused on mandates and missions of the Can- improve compliance, potentially firm, we support initiatives that to users. If preparers, auditors and cost reduction and operational effi- adian Public Accountability Board uncover fraud and, ultimately, enhance the auditor’s report, and regulators focus on providing ciency. We’re helping our clients and U.S. regulators are very similar strengthen our clients’ business.” we also strongly support measures useful information in financial navigate these disruptive market — protection of investors. While Other regulatory initiatives con- that promote auditor independence statements, the result could be forces.” there may be differences in style, it cern Canada’s profession more — for the good of investor confidence streamlined statements that satisfy McFarland says Canadian com- seems likely CPAB is monitoring and also offer new opportunities and the capital markets.” the needs of users.” panies “will continue to be faced the growth of advisory services as for professional services. Vettese cites the continuing dis- The idea that the U.S. may let with a complex environment, well. More importantly, their According to McFarland, “the cussion globally on audit quality domestic companies use IFRS including a fluctuating exchange reviews consider independence, as scope and cost of regulation con- indicators with the International information in some supplemental rate, lower oil and gas prices, the we do, to be critical in delivery of tinues to be an important business Forum of Independent Audit Regu- form in their financial statements need to innovate and improve pro- audit services.” issue, with 76 per cent of Canadian lators and the U.S. Centre for Audit also gets a positive nod. “There is a ductivity, high government and Vettese notes “it’s certainly not CEOs concerned about the regula- Quality both exploring their use long-held desire to have com- personal debt levels, and a lack of the case that one regulator sees this tory costs of doing business.” and benefit. “Recent activities by panies’ financial reporting provide business confidence — all of as an issue and the other doesn’t. For example, he points to sus- various parties, including Deloitte, the most meaningful information which provides opportunities for us The real difference is in the priority tainability and climate change, to develop and test AQIs at the possible to investors,” says Noble. to help them.” The Bottom Line April 2016 FOCUS 21

BDO aims to strengthen mid-market presence

By GUNDI JEFFREY The mergers also give BDO the s the unofficial merger critical mass it needs to invest in king of 2015, scoring seven infrastructure, training and ser- Amajor mergers in the past vices that will help clients with year, BDO Canada LLP is also the their own transition into a more leader — by a small margin — in challenging future. “Our client overall growth among Canada’s 10 experience is changing rapidly and biggest professional services firms. we are working on investments to Adding hundreds of staff and keep up. Our clients’ employees partners, BDO has expanded its use apps and other technology to service lines, industry expertise do their jobs or carry out their and geographic footprint in Can- business. The expectation today, ada’s major centres. and in the future, is they want the “Growth is important to any same experience when they are business today, especially in pro- working with their service professional services,” says Pat viders. So, key for us is that our Kramer, BDO’s CEO since July investments in technology are rel- 2015. “We are focused on strategic evant for the future. This means growth and adding the best people having apps, client portals, pro- and services. It’s about being the viding clients with information best professional services firm in and helping them analyze data on our market.” their phones and tablets in a timely It seems that, in the years since and relevant way. This is a critical it was bumped from sixth place in change happening today and will the Canada’s Accounting Top 30 continue in the future.” rankings, BDO has made a deter- As well, the mergers focus on mined effort at implementing a acquiring talent. “When we do strategy aimed at growth. Through mergers, we look at the talent we carefully planned mergers, says “We are focused on strategic growth and adding the best are acquiring — these people will Kramer, “BDO has focused on be the future leaders of our firm. acquiring the right skill sets to pro- people and services. It’s about being the best professional Going forward, talent acquisition vide clients the best and most com- will be one of the key reasons to prehensive services possible and services firm in our market.” focus on when looking at a poten- on developing new service areas tial deal: what kind of people are that clients will need in the future.” Pat Kramer, BDO Canada involved and how can we develop And that strategy, says Kramer, has and train them.” The talent piece paid off handsomely. stories. Together, we can deliver a ability to respond to new client result in the development of a “is absolutely critical for us,” “We are merging with firms of formidable offering to the Mont- needs in that area. We believe our dedicated small business partner in Kramer adds. larger sizes, with strong experience real marketplace and we’re excited IT services will continue to grow the Greater Vancouver Area,” From a geographic perspective, in new service areas and strength- by the opportunity for our people very quickly for our business.” Kramer says. BDO sees tech- BDO has offices in more than 100 ening our footprint in major areas to grow and prosper within the In November, BDO acquired nology as being a substantial dis- locations in Canada. “We have a of Canada.” Even better, he adds, wider BDO environment.” H&A Forensic Accounting, a ruptor in the accounting field and strong geographic footprint, but “opportunities are coming to us. Another 2015 merger, says Toronto-based professional for- has developed an outsourcing there are areas we are always We operate in a different space. We Kramer, was with NPT LLP in ensic accounting and advisory offering designed to alleviate the looking to strengthen, such as the are the mid-market leader with an London. “We are now the dom- firm. As a leading specialist in per- day-to-day burdens, by providing a GTA, Montreal, Vancouver and entrepreneurial spirit and have inant mid-market player in the 401 sonal injury insurance claims cloud-based platform for book- Calgary.” Regardless of the current more resources to offer clients, West corridor, which is something quantification, H&A’s proprietary keeping, payroll and CFO ser- economic challenges in Alberta, which is key.” we were keenly interested in technology platform, Virtual vices. “Our outsourcing services Saskatchewan and B.C. because of He added, “But we are selective doing.” Office, offers insurance companies are available from coast-to-coast, the collapse of the resource sector, — we want to make sure that there BDO also acquired important a suite of financial tools to assist but we really see Vancouver Kramer adds, “we continue to look is a good cultural fit.” talent, specifically in the wealth them with income loss and interest becoming a centre of excellence at opportunities there because For example, a June merger management area, “which will be a calculations. for us,” Kramer added. there are cycles in every business with Deveaux Brault Munger & and industry — things will turn Associates, a scientific research “The whole industry is going through a massive around and we need to be pre- and experimental development tax pared.” consulting firm in Montreal, sub- consolidation — consolidating and joining of global firms. BDO is in a good position for stantially expanded BDO’s 2016 and the future, he concludes. SR&ED expertise in Québec “and Firms that do not adapt, do not move forward and “In a few years, BDO in Canada underscores a period of significant will be almost 100 years old. The growth in the province.” anticipate what is happening will not succeed.” strategies of the past are not the This union followed the opening strategies we need to meet the of a Quebec City office in Pat Kramer, BDO Canada challenges and opportunities of the December 2014 and another June future. Our strategies include merger with Montreal’s Fauteux, embracing innovation, recruiting Bruno, Bussière, Leewarden key service for our firm in the “H&A’s team brings substantial All these mergers and acquisi- the best talent with a focus on mil- (FBBL), bringing BDO’s Quebec future. The acquisition of this talent forensic accounting expertise and tions have expanded BDO’s reach lennials and growing our presence to nearly 300 employees gave us a good foothold there,” a thorough understanding of both in the industry areas it focuses on expanding service offerings to our and 30 partners. “We are now the Kramer said. The merger also litigation and insurance processes. and strengthen its tax and advisory clients in new ways that leverage leading player in the mid-market in added industry expertise, “specif- The merger creates a market- capabilities. “For us,” notes technology. The coming years are Montreal,” Kramer said. ically in health care.” leading forensic accountancy prac- Kramer, “it is very important to critical for all professional ser- And, from FBBL’s perspective, BDO also expanded its advisory tice,” says Kramer. have areas of industry specializa- vices firms. The whole industry is says partner Gilles Bussière, “we services with a merger last April Also in November, BDO tion because our clients are oper- going through a massive consoli- can take our local expertise and in- with Mississauga-based System- merged with Majewski Shaler, a ating in industries. They are dation — consolidating and depth knowledge of our client’s group Consulting Inc. “This acqui- Vancouver-based firm serving the looking to us for business advice joining of global firms. Firms that businesses and leverage BDO’s sition added a complete integrated area’s small and medium enter- and understanding, and industry do not adapt, do not move forward international network to help them service using our Microsoft appli- prises, which continues to be a specialization is a vehicle for us to and anticipate what is happening reach the next stage of their growth cation platform and expanded our focus for BDO. “This merger will do that.” will not succeed.”