To find clients in the hospitality and tourism industry, an accounting firm must position itself to address the sector’s unique challenges: seasonality, fluctuating pay, tips, and lodging taxes. These full-service engagements typically range from $700 to $2,000 per month, for informational purposes only. A platform like Bankeo Pro then forwards pre-qualified leads by industry, often matching them within 48 hours.
The hospitality and tourism industries present unique accounting challenges: cash flow that fluctuates with the seasons, staff numbers that double during peak season, tips that need to be managed, and industry-specific taxes. Hoteliers, innkeepers, bed-and-breakfast operators, outfitters, and tour operators are looking for an accounting firm that understands this rhythm, and few firms clearly demonstrate this expertise. This article details the potential of the Canadian market, the sector’s real accounting challenges, a concrete positioning strategy, and how to receive pre-qualified leads without having to prospect.
The sector plays a major role in the Canadian economy. According to Destination Canada, tourism revenues reached approximately $110 billion in 2023, surpassing pre-pandemic levels. Statistics Canada, for its part, estimates that nearly 700,000 jobs are directly attributable to tourism (National Tourism Indicators, 2024). Behind these aggregate figures lie tens of thousands of small and medium-sized businesses: independent hotels, tourist restaurants, campgrounds, outfitters, and inbound travel agencies. All of them operate on a seasonally driven accounting cycle, and most are served by generalist accounting firms.
Three factors make this niche attractive for an accounting firm or a CPA:
A sector-specific focus also reduces your development costs: a prospect who chooses you because you understand their industry is more likely to convert and less likely to negotiate. This dynamic is quantified in our analysis of the Customer acquisition cost for an accounting firm in Canada.
Understanding these challenges means knowing how to connect with the client from the very first call. Four key areas account for the bulk of a specialized accountant’s value.
This is the number one challenge. Revenue is concentrated in just a few months, while rent, insurance, debt, and base salaries accrue throughout the year. Without a monthly cash flow forecast, a business that is profitable for the fiscal year may run out of cash during the off-season. A specialized accountant creates a monthly cash flow budget, schedules repayments and investments to avoid slow periods, and helps build up a reserve during peak periods.
Staff come and go in line with seasonal demand: bulk hiring in the spring, layoffs in the fall, and variable hours in between. Labour turnover in the tourism sector remains among the highest in the Canadian economy, a challenge documented by Tourism HR Canada. For business owners, each cycle means more employment records, more adjustments to payroll deductions, and a higher risk of errors. A firm that specializes in seasonal payroll ensures compliance and saves dozens of hours each year.
Tips are taxable income, and how they’re treated depends on their nature. The Canada Revenue Agency distinguishes between “controlled tips,” which are processed through the employer and subject to deductions (CPP, Employment Insurance), and “direct tips,” which are paid directly from hand to hand. In Quebec, the system is even more strictly regulated: employees who receive tips in the applicable sectors must report their tips to their employer, and Revenu Québec provides for an allocation mechanism when the reported amounts are less than 8% of tip-eligible sales. An accountant who understands these rules protects their client from a tax assessment and ensures transparency with the staff.
Tourist accommodations are subject to their own taxes: in Quebec, the 3.5% lodging tax applies to most rental units (Revenu Québec), and several municipalities in other provinces impose a municipal lodging tax at a variable rate. Added to these are the GST and provincial taxes on packages, which may include a mix of services (lodging, meals, activities), and these must be itemized in detail on every invoice.
| Challenge | Risks if poorly managed | The Role of a Specialized Firm |
|---|---|---|
| Seasonality | Cash flow shortages during the off-season, poorly timed investments | Monthly cash flow budget, reserve set aside for peak periods, repayment schedule |
| Variable Pay | Payroll errors, late employment records, wasted time | Structured seasonal payroll process, CPP compliance, and employment insurance |
| Tips | Incomplete filings trigger the allocation mechanism (8% in Quebec) | Documented tracking, distinction between verified and direct tips, payroll integration |
| Accommodation Taxes | Approximate Breakdown of Package Prices, 3.5% Tax Incorrectly Applied in Quebec | Correct configuration of taxes by product, discounts paid on time |
These projects require a systematic approach and ongoing effort, which justifies higher fees than those for generalist engagements. The Bankeo Fee Barometer of Accounting Fees, based on more than 15,000 requests received since 2023, puts the median at around $3,000 per year for an SME, ranging from $500 to $6,000 depending on the sector. A full-service engagement in the hospitality and tourism sector, including bookkeeping, seasonal payroll, and forecasting, exceeds this baseline: typically ranging from $700 to $2,000 per month depending on the size of the establishment, an indicative range to be adjusted based on the exact scope of the engagement.
Targeting this niche doesn’t mean turning down other projects. It means making your expertise visible and credible, so that business owners recognize you as the right person to work with.
“An accountant who says, ‘I do it all,’ is competing on price. An accountant who says, ‘I understand the seasonal nature of the industry, fluctuating payroll, and tips in the hospitality sector’ competes on expertise. And expertise is something you choose, it’s not something you negotiate.” Arnaud Bertrand, CEO, Bankeo
Every business development initiative must comply with your provincial professional association’s code of ethics, particularly regarding solicitation and referral agreements. The Canadian regulatory framework is discussed in our article on the Client Referrals and the CPA Code of Ethics in Canada. For a general approach that goes beyond niche markets, see How to Find Clients for an Accounting Firm.
If your clientele is more interested in dining than in lodging, the process is similar but the rules differ: see our article for Find clients in the restaurant industry for your accounting firm.
Key Points
- Canadian tourism generated approximately $110 billion in revenue in 2023 (Destination Canada): there is a large pool of small and medium-sized business clients.
- Four key factors shape the value of a specialist: seasonality, fluctuating pay, tips, and lodging taxes.
- A full-service contract typically ranges from $700 to $2,000 per month, a rough estimate; the Market benchmark remains the Bankeo Fee Barometer (median of around $3,000 per year, ranging from $500 to $6,000 depending on the sector).
- Your search engine ranking will take effect in 90 days; however, a steady stream of qualified leads can start coming in right away.
Marketing efforts yield results, but rarely before several months have passed. A matching platform shortens this timeframe by directly sending you profiles that match your niche. With Bankeo Pro: You define your target sectors, including the hospitality and tourism industries. When a business owner submits a request, Bankeo qualifies it (by sector, need, and size) and then suggests matching, often within 48 hours. You receive a lead that matches your area of expertise, not a cold list you have to sort through.
The network has 1,500+ registered accounting firms and received 15,000+ requests since 2023, with a rating of 4.7/5 based on 180+ Google reviews. Details of the matching are described in How Bankeo Pro Works, and the Frequently Asked Questions from Partner Firms cover individual cases. For an overview of the program, see the Bankeo Pro Hub for accountants ; the network’s latest news is published in News for accountants.
Why target the hospitality and tourism industries rather than remain a generalist? The sector generated approximately $110 billion in revenue in Canada in 2023 (Destination Canada) and continues to be largely served by generalist accounting firms. Its specific challenges, seasonality, fluctuating pay, tips, and lodging taxes, justify higher fees and foster greater client loyalty, as switching accountants in the middle of the season is a risk these clients seek to avoid.
What is the most challenging accounting issue in this sector? Seasonality. Revenue is concentrated in the high season, while expenses are incurred year-round. Without a monthly cash flow budget, a business that is profitable for the fiscal year may run out of cash during the low season.
How much should you charge a client in the hospitality and tourism industry? For informational purposes only, a full-service contract typically ranges from $700 to $2,000 per month, depending on the size of the establishment and the scope of services (bookkeeping, seasonal payroll, forecasting). The Bankeo Fee Barometer, based on more than 15,000 requests received since 2023, compares these fees to those in other industries.
How does Bankeo Pro refer clients from this industry to my firm? You define your target sectors, including the hospitality and tourism industries. When a business owner submits a request, Bankeo evaluates it (sector, needs, size) and then proposes matching, often within 48 hours. You receive a lead that’s already aligned with your area of expertise.
Should you turn down other clients to target this niche? No. Targeting the hospitality and tourism sectors means making your expertise visible and credible to attract this type of client, without turning down other projects. The sector becomes a key focus for your positioning, not an exclusive one.
By Arnaud Bertrand, CEO, Bankeo. Bankeo Pro allows your firm to define its target sectors, including the hospitality and tourism industries, and sends it pre-qualified requests from business owners, without the need for cold calling.
Bankeo attracts entrepreneurs, filters them, and presents you with leads that match your practice. A fee per file is charged, and the amount is known in advance.
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