how to help your client run their business better.
by hitendra patil
client accounting services: the definitive success guide
let us focus on cas-specific processes that can give you competitive advantages. this is not about the technicalities of accounting processes. as a professional accountant, you already know the accounting fundamentals required to create your processes for each of the segments of the services you provide.
more: why cas? why now? | nine ways to measure client experience | twelve clues it’s time to outsource or offshore | yes, you have the staffing for cas | why firms shy away from cas | hook your firm on cas | can you identify real cas prospects? | 8 ways to create your cas practice | do you value your cas value?
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are cas processes different than what you have been doing till now? yes, and no.
yes, because cas is about the outcomes of your work, from the clients’ perspective. cas outcomes are useful, insightful, and advise clients in ways that routine, traditional reports cannot deliver. the outcomes you provide from your cas offering need to relentlessly focus on the relevance, usability and importance from your clients’ point of view. compare this with general perceptions of what accountants deliver – financial statements and tax returns, i.e., more of compliance assurance rather than competitive business intelligence.
no, because the fundamentals of the experience and expertise required to produce accounting information do not change.
how are cas processes different?
in a traditional client-accountant business relationship, the accountant produces books and financial statements and delivers them to the business owner. it is up to the business owner to interpret what books and reports mean, and (hopefully) take actions based on that meaning.
while this may sound too simplified a way of stating how accounting work gets utilized usually, it is more true when it comes to small businesses. but it is important because small businesses form a significant part of the total number of clients firms of almost all sizes serve. however, accountants can easily find crucial insights that can help small business owners make better and timely business decisions, and many times even avoid potential problems that can threaten the very existence of such businesses. so here are some core fundamentals in which your cas processes will be different:
produce and interpret: cas processes ensure that accountants “produce and interpret” accounting information and insights so that they can effectively advise the business owners.
- key takeaway for you to develop your cas process: think of how you will interpret which information to provide what insights that your clients will find useful and actionable. your cas processes will need to include standardized processes to do so.
insights and business intelligence: cas processes cannot be good enough if you are unable to derive and deliver insights and business intelligence to your clients. this requires you to identify what are the vital insights your clients must look at periodically and lay down process steps so that you generate those insights to your clients without fail. the cas process must include standardization of the tasks required for producing the information that leads to generating insights and business intelligence. you cannot let only the partners or the most experienced people at your firm be responsible for this process. it has to be systematized.
- key takeaway: your cas process needs to ensure setting up of processes that produce insights and business intelligence. although you can standardize the process steps for this purpose, you need to customize the outcomes of this process for each client as every client’s business is different. hence, insights and business intelligence will be different for each client.
frequency and timeliness: cas processes include more current, real-time work, e.g., weekly payables and receivables reporting and related cash flow planning. it is not about the rear-view analysis of the past to just “learn lessons.” it is about helping business owners take the day-to-day actions in their business processes.
- key takeaway: think as if you are the owner of your client’s business. because you are also a professional accountant, you are able to better know the insights from the books and accounting reports. armed with this ability, which actions will you take to run your business better? your cas processes should produce such prescriptive/recommendatory actions.
getting the information from clients: your work starts after you receive information from your clients – source documents, bank statements, credit card statements, check stubs, information about unusual transactions, and so on. historically, and to some extent, even now, accountants have been chasing client information. you don’t get paid until you produce work from client information. your operating costs increase because you need to follow up with clients to receive information. delay by clients in providing you the information means a delay in your revenue, causing cash flow challenges for your firm. technological advances have made it possible to fetch client information from multiple sources automatically. and that is what you want your cas processes to ensure – minimize, if not eliminate, the need to chase client information.
- key takeaway: your cas processes should include not just what work you and your staff do. cas processes also include how you set up your technological processes. on-demand, periodically automated, periodically pushed by clients’ banks – there are many ways to automate information collection and the timeliness thereof. your cas pricing strategy can make this happen for you, e.g., charge less to those clients who agree to automated information delivery to your firm.
delivering information and insights to clients: your firm’s deliverables – reports, financial statements, insights, etc. – are what clients think they pay for. in other words, there is an economic exchange. it is tactical. clients must feel and see they received something in return for what they are paying for. it is human nature. just like automating the receipt of client information, you want your cas processes to deliver information to clients automatically. again, technology makes it more possible than ever before.
- key takeaway: your cas processes must include the technological processes of your service delivery. do not stop at just emailing reports to your clients. set up automated alerts and notifications that are triggered by thresholds that are important for your client’s business. create client portals so that clients can log on to those portals to get the information they want, anytime, anywhere. leverage mobile apps to provide information to the business owners – right in their hands. invest your own time and cost to educate your clients on such choices and how to use them. the return of investment on such an investment will always be positive for your firm. your cas pricing strategy can also make this happen for you, e.g., charge less to those clients who agree to automated and electronic information delivery to them. in most cases, you will need a periodic phone or videoconferencing interaction with clients to ensure they understand the insights and business intelligence you are delivering and that they know which actions they can take based on what you tell them.
advisory services: cas processes lead to an ability for accounting firms to offer advisory services. even if you do not separately charge for advisory service to your existing clients, you should still deliver advice based on insights and business intelligence. advisory services are not random musings and casual discussions about such actionable intelligence. you need a structure to package the advice. later on, you will be able to include the key common business intelligence into your marketing and sales processes. that will become the hook to get new clients to also secure the cas work from your new clients.
- key takeaway: advisory services emerge from cas. think like the business owner receiving advice from the accountant. what would you like to hear/see/understand? your cas processes should have the capability to produce the necessary insights to cater to such client expectations as part of your advisory services.