In our latest episode of What the Tech from Boast, we sat down with Varun Sehgal, CPA and Founding Partner of Think Accounting, to discuss how his firm’s transformation from a traditional location-based practice to a cloud-first national firm changed everything, and how accountants play a critical coordination role in helping Canadian businesses maximize R&D tax credits like SR&ED.
Varun’s journey started at Ernst & Young in audit, then moved to industry roles. But in 2016, he made the leap that would define his career: Leaving corporate life to build Think Accounting with his business partners.
The transformation: Around 2017-2018, Think Accounting made a decisive shift to the cloud. By going paperless and virtual, they broke free from geographic constraints and expanded from serving the Greater Toronto Area to working with clients coast to coast across Canada.
The result: A tech-forward firm that naturally attracts innovation-driven clients in SaaS, medical technology, and e-commerce; exactly the types of companies most likely to benefit from SR&ED and other R&D tax credits.
Today, Think Accounting delivers accounting, bookkeeping, tax services, tax advisory, M&A advisory, and fractional CFO work. They also play a crucial role in identifying SR&ED candidates and coordinating with specialists like Boast to ensure clients maximize non-dilutive funding.
The Cloud Transformation: Parting Ways to Find the Right Clients
When we asked Varun about the biggest challenges in going cloud-based, he was candid:
"A lot of discussions around pricing models, around 'We don't need to meet every time.' And then also explaining the value we're able to add to the client."
Some clients didn't want to make the shift. And that was okay.
"We realize clients realize that we happily parted ways, where some clients said, 'That's fine. You go in your direction, and we'll go in a different direction.' Equally, we had to say no to some clients."
But once that clarity was there, they attracted more of the clients who didn't just tolerate this model—they preferred it.
"These industries—SaaS, technology, medical technology, e-commerce—they don't want to drive 30, 60 minutes to their accountant's office. They love this model. For them, they looked at firms like us as another plug-and-play model into their ecosystem, where the finance function can be this virtual model that we can plug into their operations. They don't need to build a large corporate accounting team."
The lesson for entrepreneurs: If your vision is clear and the value is real, don't be afraid to part ways with clients who don't align. The right clients will find you.
The Ecosystem Approach: Hub and Spoke for Innovation-Driven Startups
Varun emphasized how innovation-driven companies think differently about building their teams:
"They start out nimble. They focus on what is the MVP, what is the solution they're building for their end customers. They are the hub and the spokes get added along the way."
These companies recognize that before they hire a full accounting department, they can get a fractional CFO. Before they go to the most expensive tax firm in the country, they can get good tax advisory. They use contractors. They build ecosystems.
Think Accounting takes the same approach.
"We look at it that way as well. Could we hire a full-time valuations person? Perhaps we could. But our model is to pull in a CBV into the file as our clients need. Let's talk about R&D. A larger firm model can be 'We're going to have an in-house R&D department.' We have recognized our business model is to plug and play firms like Boast into the file because we cannot be expert in every industry."
The philosophy: "The approach here is not to become an expert in everything imaginable. Pick your core areas that you want to focus on, build on, train your team accordingly. But for everything else, build a network—whether that's SR&ED, lawyers, valuation, M&A—to be that hub for the client."
The customer-first mindset: "What is best for the customer. We don't want to have an offering where we know we're not the best option out there. When we can set up an ecosystem like that, the customer wins and they can be part of this ecosystem for longer and happier."
Identifying SR&ED Candidates: Green Lights and Red Flags
When we asked Varun how Think Accounting identifies which clients might be good candidates for SR&ED, he outlined a clear process:
At onboarding: "We make it a process that is pretty robust to have a longer discovery call, an intake process with a prospective client to really understand their business model. Understanding if they're developing—the low-hanging fruit, if they're writing any code, if they are experimenting with any of their manufacturing processes."
For existing clients: "The way we have built our firm is not once a year transactional. Majority of our clients are monthly or quarterly for bookkeeping, tax advisory, GST, HST. Those conversations are happening throughout the year. Those flags—the green flags of experimenting, building something new—the team will point it to the client themselves."
Red flags: "We don't want to rule somebody out too soon. But good example today being if somebody's just connecting Claude with their software, that's not R&D. Those solutions exist out there. Basic education of are you building something new here or are you connecting two existing technologies."
The threshold: "Are you building something that moves the world forward, moves technology forward, moves Canada forward? Yes, let's look at it."
The approach: "It's better to err on the side of caution because there's no downside to having an initial chat."
The SR&ED Enhancements: A Cash Windfall for New Industries
Varun emphasized how recent SR&ED changes are opening doors for industries that previously thought the program wasn't for them:
"Canada, because of everything that's going on in geopolitics, has a very strong incentive and desire to build in Canada now. The expenditure limit being doubled from $3 million to $6 million, capital expenditures being included—which last time was more than 10 years ago—all that means is there is more innovation out there."
Who benefits: "CapEx inclusion is huge for physical experimentation. Industries that were maybe losing out or not even thinking about it because it was too far distant in the memory—construction, real estate, food and beverage, physical technology. Those expenditures that were cost of the business are now going to be eligible for SR&ED."
The impact: "If we take Ontario as an example, we're touching almost half of that spending coming back to you in refundable and non-refundable Ontario credits and 35% for CCPCs. So all in combined, we're approaching 50%, which is humongous."
The misconception Varun cleared up: "Sometimes we think SR&ED eligibility only means if you succeed. Being SR&ED eligible and getting the grant could mean you tried building something, you tried the experiment. For whatever unfortunate reason it did not work, that doesn't mean you're not now eligible for SR&ED. Just the fact that you are addressing the technological uncertainty—it could be successful, it could be unsuccessful. The SR&ED funding is not contingent on so-called success."
Fractional CFO Work: The Personal Trainer for Your Business
Think Accounting has evolved beyond traditional compliance work into strategic services including fractional CFO work. Varun explained how this service helps clients think about funding holistically:
"It started out as business modeling, cash flow modeling, cash flow advisory because clients went through a big roller coaster over the last five, six years. Some industries like SaaS, like e-commerce, enjoyed really good growth in the early years. The management of that growth or then decline and then steadiness required a very close-knit collaboration."
What they built: "KPIs, tracking monthly dashboards, cash flow models/budget for the year, and ongoing monthly or quarterly discussions with those clients. How are you doing actual versus target? A parallel would be like a personal trainer in the gym. Some people know what to do, but you just need somebody to give you a nudge along the way, have that accountability partner correct you."
The forward-looking approach: "The fractional CFO service looks at the business holistically after the books and taxes are done. But it looks forward. It doesn't focus on just the history of what happened, but where do we go from here? Understanding those goals—some are building to go public, some are building to sell, some are building to live a lifestyle—setting those KPIs and tying it back to the business model."
Integrating SR&ED into cash flow planning: "We can help the client tie that cash flow cycle from 'Sure, you'll have to fund it initially.' Let's talk about non-dilutive funding in the form of IRAP and other grants. And even if more needed, that's where debt can be looked at as a viable solution. Year-end is gonna be done, Boast is gonna file, and we're going to get that funding or credit from the government, which can then go back to paying off that debt or reinvesting into the business."
The mindset shift: "If I know going in that I'm 50, 60 cents on the dollar out of my pocket, and the rest is Canada investing in your business indirectly or directly, that maybe changes the mindset. I was thinking I've got to spend this much, but after this expected credit, if my risk is limited—and that risk can be further limited if you have access to other non-dilutive funding or debt—then it changes the mindset that, okay, I've got my downside covered, now let's go for the upside."
Key Takeaways
Don't be afraid to part ways – If clients don't align with your vision, let them go. The right clients who prefer your model will find you.
Build an ecosystem, not everything in-house – Pick your core areas, then build a network of specialists for everything else. The customer wins when you bring in the best.
Start SR&ED discovery at onboarding – Robust intake processes and ongoing monthly/quarterly conversations help identify green flags early.
Recent SR&ED changes are a game-changer – CapEx inclusion and doubled expenditure limits mean industries like construction, food & beverage, and physical tech now qualify.
Failed experiments still qualify – SR&ED doesn't require success. If you addressed technological uncertainty, you're eligible—even if it didn't work out.
SR&ED isn't just for SaaS – That's a misconception. Manufacturing, physical experimentation, construction, food & beverage—all can qualify now.
Fractional CFO work integrates funding strategy – Look at SR&ED, IRAP, debt holistically. Plan the cash flow cycle knowing 50% of R&D spending comes back.
Ask your accountant – Just open the conversation. There's no bad questions. Sometimes it's "What I'm doing, is it eligible?" Sometimes it's "What could I be doing?"
Connecting Claude to your software isn't R&D – Using off-the-shelf AI solutions isn't technological uncertainty. Building something new that moves Canada forward is.
Listen to the Full Episode
Want to hear Varun's full story about transforming Think Accounting from paper to cloud, how accountants coordinate SR&ED strategy, and why the recent program changes are a cash windfall for new industries?
