Kim Blascoe, Senior Director of CAS Professional Services at CPA.com, dives into the booming world of Client Accounting Services. She reveals insights from the CAS Benchmark Survey, underscoring a remarkable 17% revenue growth in this field. The conversation highlights the shift from basic transactions to high-level advisory roles, urging firms to embrace mentorship and specialization. Blascoe also addresses the importance of strategic planning and data analysis for enhancing client relationships, alongside innovative staffing solutions to tackle current industry challenges.
CAS is experiencing remarkable growth with median revenue increasing by 17%, significantly outpacing traditional accounting services, indicating a robust future.
Firms that specialize in high-value advisory services within CAS see improved performance; however, many are yet to fully leverage this potential.
Deep dives
Understanding CAS and Its Growth
Client Accounting Services (CAS) represents a rapidly evolving sector within accounting firms, distinguished by its diverse definitions and service offerings. CPA.com emphasizes a broad array of services, from routine transactions to comprehensive business insights, underlining the importance of technology in standardizing these services. Survey results demonstrate that successful CAS practices tend to specialize in niche markets, which correlates with higher profit margins and more effective operations. This adaptability allows firms to craft customized CAS definitions aligned with their unique visions and client needs, fostering growth in this dynamic area.
Impressive Growth Metrics
The recent survey underscores the remarkable growth of CAS, with median revenue growth reported at 17%, notably higher than traditional accounting services which hover around 5% to 8%. This growth trend is not just a short-term occurrence; projections suggest continued expansion, with anticipated median growth rates of 15% in the next year and even greater expectations over the next three years. These figures indicate a strong future for CAS, as firms that embrace advisory services are likely to see enhanced revenue and client relationships. The consistent double-digit growth within the CAS sector suggests that it is a vital area for firms looking to thrive in the evolving accounting landscape.
Importance of Advisory Services
Firms engaging in higher-value advisory services within their CAS offerings tend to experience significantly better performance and revenue generation. Despite many firms indicating they have the capability to provide these advanced services, many are still not fully capitalizing on this potential, often just scratching the surface of what they could achieve. Engaging younger staff in these advisory roles can enhance their comfort and competence in client interactions, further propelling the firm’s expertise. Standardizing advisory offerings, even at lower transaction levels, is crucial for empowering staff and creating a comprehensive service environment.
Staffing and Best Practices
The staffing approaches within CAS differ significantly from traditional accounting practices, allowing firms to attract a wider range of talent, including non-CPA professionals and technology experts. Leveraging offshoring opportunities has become more prevalent among firms of all sizes, facilitating efficient service delivery without being confined by geographic limitations. Moreover, embracing AI and technological solutions can help firms alleviate staffing shortages while maintaining high-quality services. As the industry continues to transition towards dedicated staff and specialized roles, firms positioned to adapt will likely see sustained growth and enhanced profitability.
Kim Blascoe, senior director of CAS professional services at CPA.com, shares some of the highlights of their most recent CAS Benchmark Survey -- from the area's extraordinary growth rates to the key practices of a high-performing CAS practice.
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