client accounting services surpasses attest as the hottest menu item.
by hitendra patil
client accounting services: the definitive success guide
cas is the new no. 1. for the first time ever, top 100 firms see client accounting services as the no. 1 growth driver
“niche services fueled growth for the 2022 top 100 firms, with client accounting services/business process outsourcing the most commonly reported area of expansion over the last year for the 83 responding t100 firms,” according to accounting today in releasing the much-followed list of the nation’s top-grossing tax and accounting firms.
“cas/bpo shot up nine percentage points to attain the no. 1 position for the first time ever, with 84% of the t100 experiencing increased demand, continuing its rapid upward trend in reported growth over the last few years,” says accounting today.
why and how has cas become the #1 growth driver for the top firms in the country? let’s take a closer look.
based on my continued research in cas, and hundreds of interactions with accountants over the last two years, here are the top five reasons firms are citing for such growth in cas demand:
the great resignation: believe it or not, the “great resignation” is benefiting accounting firms. cas relieves clients from the burden of hiring (which has become very challenging), training, and retaining accounting talent by offloading that work to accounting firms. it also lets clients focus on growing their business by focusing on what they do best.
technology comes to the rescue: while the great resignation also affects accounting firms, the profession moved to cloud technologies more rapidly than ever before since the pandemic started. that also helped firms more closely see and leverage the opportunities for integration and automation that cloud solutions provide. the resultant efficiency gains can nullify the challenges caused by talent war. firms are reporting that the same number of staff members can manage double or triple the volume of some transactional services like bookkeeping, payroll processing, compliance, etc. – because of such a technological shift.
growth industries and niches: the pandemic transformed the fortunes of some industries while denting others. as a result, accounting firms have found new or suddenly faster-growing industries and professions to create specific niches to focus on to offer client accounting services. this strategy doubles the leverage for firms:
- on the one hand, the firms become visible experts in such niches to be able to offer more powerful and actionable insights and advice.
- on the other hand, faster growth in such client niches brings more revenue per client.
remote working: while pandemic forced the remote working phenomenon on the profession, the unintended benefit, i.e., the enhanced ability for accounting firms to attract talent from wider geography, is adding more service and knowledge capabilities into firms. on a simplistic level, it helps firms provide availability in more time zones. on a more strategic level, it allows firms to add new/deeper competencies which may not be readily available only in the local market.
increasing compliance complexity: ppp loan and subsequent forgiveness created a sudden exponential increase in clients needing professional accountants to help them benefit from such governmental measures. it made the “knowledge and competence gap” between clients and accountants glaringly conspicuous. millions of businesses couldn’t have survived the pandemic shock without the timely help from professional accountants. that ppp period also made clients interact with their accountants more than ever before. that propelled the strength of accountants’ client relationships to new heights. the eye-opening positive experience of how critical accountants are for their businesses has also made clients more open to seeking more help from accountants.