provide a different value experience with cas to stop price comparisons. 
by hitendra patil
the definitive success guide to client accounting services
have a cas question? get it answered here.
question: at our firm, we have been working on creating cas capabilities. we feel that the cost of offering cas will increase our services’ prices. we are worried that our clients will find cas too expensive. traditionally, it has not been easy for us to increase our prices. how should we go about our cas pricing?
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a: there are two separate problems here. first, your firm has a cost-plus pricing model. you’d want to change it not just for cas but also for other services. in general, cost-plus pricing emphasizes the features of your service. your pricing should reflect the relevant benefits of your service. second, you need to find out the different value that clients will experience from your cas offering.
the accounting profession’s largest cas survey revealed that cas is more profitable than traditional services. it means cas pricing methods have matured.
- when people “need” something, they are price-sensitive. e.g., people “have to” file tax returns, i.e., it is a need. therefore, clients likely resisted when you tried to increase tax preparation prices. but when people “want” something, price sensitivity reduces. cas provides opportunities for clients to buy something they want, e.g., professional accountants’ advice while they are making their business decisions. can you separate your clients’ needs from their wants?
- your cost of producing cas services will be higher if you do not make changes/adjustments to your tech stack and processes. you’d want to leverage automation and integration between the different software you use. it will release efficiency and productivity gains into your firm. only after that should you change your processes to make them leaner.
- cas success requires predictable process controls. it does not mean only the partners or managers should maintain such control. it is possible to delegate many cas processes to relatively lower-cost paraprofessionals.
the examples above are just some ideas to get you started. after you put such and similar measures in place, you can rework your cas profitability calculations.
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