42% of Canadian SMEs Fear Closure - Yet Many Still Handle Finances Alone

TORONTO (August 18th 2025): As economic pressure mounts, 42 per cent of Canadian small and medium-sized enterprises (SMEs) say one more cost surge could force them to shut down. Despite these turbulent business conditions, 35 per cent of business owners still manage their own finances, while 13 per cent rely on a friend or family member—instead of seeking help from professional accountants or bookkeepers.

The findings come from Built for Bigger Things, a new study by Dext surveying 500 SMB leaders across Canada. The report highlights a mismatch between the scale of financial pressure SMBs are under and the level of expert support they’re using, at a time when rising costs, U.S.-Canada trade uncertainty, and changing consumer behaviour are threatening business survival.

“There’s a clear call to action here,” said Sabby Gill, CEO of Dext. “Too many small businesses are going it alone, when they could be leaning on the strategic insight, data-driven decision-making and time-saving tech that accountants now bring to the table. It’s not only a missed opportunity, it’s a growing risk.”

Tech-savvy accountants, tech-starved SMBs

While most SMEs are still drowning in manual financial admin, there has been broad adoption of automation and AI among the Canadian accountancy profession. According to a KPMG study earlier this year, Canadian organizations are making progress in AI for tax management, with 63 per cent piloting or using AI in tax operations, with the majority (46%) in the pilot stages. Despite being in the AI era, over a quarter (27%) of SMEs still rely heavily on manual financial processes, and only a third are fully automated.

The result of SMEs still relying on manual processes for financial admin means that nearly one in five business owners (18%) admit to spending between 21-40+ hours a month on financial admin, the equivalent of nearly a full working week lost to non-revenue generating tasks and over a third (35%) managing finances solo.

“SMBs need more than survival tactics. They need strategic partners who can help them plan, adapt and grow,” said Gill. “And today’s accountants are ready for that role. They’ve invested in innovation, embraced automation and built the tools that SMBs desperately need. This is a moment to bridge the gap.”

From crisis to opportunity

The report paints a sobering picture across the board:

• 24% of SMBs have experienced cashflow issues in the last 12 months
• 45% believe they’d be better leaders without the burden of financial admin
• 35% spend more time on finance than growing their business
• 35% say they’ve missed business opportunities due to time lost on finance tasks

Despite growing external pressure, the research shows that most small businesses are not accessing the professional financial support that could improve resilience and planning. With just 30 per cent of SMEs using an external accountant or bookkeeper, a majority are navigating this economic storm without expert guidance.

And this is reflected in the lack of strategic planning. Half of SMB leaders say planning is “virtually impossible” in the current climate, while only a quarter conduct recession scenario modelling. This lack of forward-looking financial strategy leaves businesses vulnerable and underscores the untapped role accountants can play as trusted advisors as well as service providers.

“Accountants today are not just record-keepers, they’re business enablers,” Gill added. “As this crisis unfolds, their ability to deliver smart new tech-driven insights, streamline processes and unlock long-term growth potential has never been more critical. The businesses that recognize this, and the accountants who support them, will be the ones who can rise above the noise and focus on the bigger things that drive growth and success.”

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NOTES TO EDITORS 

Media contacts

Sofia Cabrera, Senior PR & Communications Manager

sofia-louise.cabrera@dext.com 

Linda North, North PR 

linda@northpr.ca

About the data

The Built for Bigger Things quantitative research study was commissioned by Dext and conducted by Censuswide. It surveyed 500 senior decision-makers at Canadian small and medium-sized businesses (1-249 employees) across a range of industries. Fieldwork took place over a two-week period in June 2025.

About Dext 

Dext, part of the IRIS Software Group, is the leading provider of AI-powered bookkeeping automation. Founded in 2010, the company empowers businesses, accountants, and bookkeepers to thrive through cutting-edge artificial intelligence and machine learning technology that simplifies accounting processes and enables smarter, more timely financial decisions. 

Trusted by thousands of professionals worldwide, Dext integrates with major accounting software and connects to over 11,500 banks, suppliers, and marketplaces.

In 2024, Dext joined IRIS Software Group and continues to work directly with its clients to create a more seamless, end-to-end accountancy workflow. For more information, visit www.dext.com.