State of the Art Software to Start Canadian Firm : Technology: Irvine-based company will open an office in the greater Toronto area that offers accounting programs.

State of the Art Inc., the accounting software developer in Irvine, said Thursday that it plans to start a Canadian company to serve that market.

The company will be in the greater Toronto area, State of the Art said, and will employ about 25 Canadians during its first year. The company said it is negotiating for office space now.

“Our market research has indicated that when given a choice, Canadian companies would prefer to do business with Canadian organizations who operate in and understand the Canadian business climate,” David S. Samuels, State of the Art’s chairman, chief executive officer and president, said in a statement.

The company said it is working with accountants Ernst & Young in Canada to develop Canadian versions of its accounting software.

State of the Art said it is negotiating for temporary office space in Mississauga until the location and construction of its permanent 10,000-square-foot facility in the Toronto-Mississauga area are finalized. It anticipates moving into the permanent facility by year’s end.

Wendy Craig, a partner in the Mississauga office of Ernst & Young, said in a prepared statement that State of the Art’s commitment to build an operation in Canada is important to penetrating that market.

“There’s a perception by Canadians,” she said, “that when U.S. companies market and sell their products in Canada, it’s done as an afterthought.”

Founded in 1981, State of the Art develops and markets accounting software for microcomputers. The company reported revenue of $21.6 million for 1992.

The company’s stock was unchanged at $8.50 a share in Thursday’s trading on the NASDAQ market.