five keys for planning.
by hitendra patil
client accounting services: the definitive success guide
your firm’s current processes/procedures adapted to your current technology stack, or vice versa. trying to “fit in” client accounting services into your existing technology stack may become a challenge for you – not just from a procedural point of view but also from a profitability point of view. if your current technology stack is still more of desktop software, it could be nearly impossible for you to offer cas as profitably as potentially possible with non-desktop solutions.
more: five ways to overcome cas staffing challenges | raise cas awareness among your clients | which clients are best for cas | how much can automating bank feeds save you? | wants vs. needs: why not fill both? | get sticky with cas
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before you start thinking, “oh gosh, this is going to be a hugely expensive technological overhaul of my firm,” stop. cas does need you to adapt to an optimal technology mix, but it does not mean you just throw away your current technology and bring in entirely new technology. cas does not need a technological transformation of your firm. depending upon your existing technology stack, it may only require some reorganization, integration and adjustment.
we will explore some technology scenarios most commonly found at firms of nearly all sizes. most likely, your firm’s current technology stack will be similar to one or more of the following. and in each such scenario, you will find a “to-do” advice to adjust your technology stack.
if your firm is already mostly in the cloud
even now, there are hardly any firms that are 100 percent in the cloud. so, to discuss this category of firms, we’ll consider any firm that has core accounting, payroll, tax and practice management software in the cloud, and ideally with collaborative access provided to clients.
if your firm is one of those firms that has these core software in the cloud, you are ideally poised to offer and benefit from cas. here are the key steps to strengthen your cas offering:
- identify cas-fit clients and move their work into your firm, i.e., such clients should consume only key reports, insights and advice from wherever they are while handing over all the processing work to your firm.
- refine your firm’s marketing and sales processes to attract more cas-fit clients rather than signing on clients that want to “do” some/all of the work themselves.
- alter your internal processes to leverage the capabilities of the cloud to obtain necessary source documents/information/data without much need to interact with / chasing clients.
- identify “duplication of data entry” across your firm’s operating processes and aim for “data once created will only get enriched at next step/s, not re-created.” you can achieve this by integration between multiple software applications, and by automation of some of the process steps. this is perhaps the most crucial aspect that will define the success and the profitability of your firm’s cas offering.
- as much as possible, move client interactions online, and reduce email interactions to as minimum as possible. use online chats, client portals, even old-fashioned phone calls (which will help you strengthen client relationships) to interact with clients. minimize your client interactions that happen only for exchanging data/documents/information (those must get automated). maximize your client interactions that occur for the exchange of insights/advice/consulting/needs/wants identification.
if your firm is partly in the cloud
if some of the technology used by your firm is in the cloud – and quite a few of your existing clients have their accounting/other software, either desktop or cloud or a mix – you have a “diffused technology footprint.” it takes more time, effort and hence cost to manage such technological infrastructure. more importantly, your clients get a suboptimal experience of service and are prone to be lured away by promises of exceptional customer experiences offered by cloud-based firms.
if your firm has such a diffused technology footprint, it is still possible for you to launch and grow your cas practice quickly. you can then slowly move most of the users, including those at your clients’ offices, onto the cloud. here are the key steps to get going on your firm’s cas journey:
- reduce the number of versions of the same software that you / your clients use – to as few as possible. ideally, use just the latest, the current version for as many clients as possible.
- look to move more of your firm’s software to the cloud and integrate the key software with each other.
- reorganize your technology stack to concentrate more on cloud and technology that is more in your control. as cas envisages more processing work to be done by your firm, clients’ need to keep accounting-related software in their possession and control diminishes.
- adapt your firm’s internal processes to more cloud-based work. this is one of the toughest and timewise the most prolonged change that you’ll undertake in your cas journey – more so because your staff will take time to adjust to the revised processes.
- identify cas-fit clients and move their work into your firm, i.e., such clients should consume only key reports, insights and advice from wherever they are while handing over all the processing work to your firm.
if your firm is hardly in the cloud
if your firm and your clients mostly use desktop software for core accounting work, you can still start offering cas by first moving your client service onto the cloud. use client portals/cloud cabinets, i.e., instead of emailing / mailing paper-based periodic reports, put some progressive clients into the habit of online consumption.
if your firm is mostly on desktop, and if it is your clients who mostly subscribe to desktop software, your immediate task is to take a hard look at your business model itself. if you have attracted primarily small business, after-the-fact write-up clients who are price-conscious/sensitive, you were offering commodity services. if you continue to operate in the same way, you will endanger your firm’s survival because more automated technology will reduce the need for your assistance. here are some critical steps you can take to start your firm’s cas journey.
- more likely than not, you might still find that a large part of your revenue comes from just a few of your clients – and those are the clients you want to move on to cas, and on to the cloud.
- it will change your internal processes that produce client work to adapt to the cas business model.
- that will give you the much-needed experience of offering cas so that you can start pitching it to your new prospects. your firm’s business model will slowly begin to change to attract more cas-fit clients.
- change most of your marketing materials, website description, sales pitches, etc. to reflect your cas experience and expertise.
- consciously move away from desktop software as more and more clients support/accept cloud-based cas.
how to decide on your ideal cas technology stack
based on the cas survey findings and the insights gathered from interactions with hundreds of firms of various sizes offering cas and even those not providing cas, the following information will help you define your core cas technology stack.
- think of which software/applications a cas-fit business needs to do accounting, payroll, tax, customer service and hr management. whichever software you have/select, make sure each of such software is on the cloud, preferably with built-in workflows. such software should have utilities that help it either directly integrate with, or at the very least, allow some kind of plug-ins/features that help it integrate with other software. again, aim for “data once created will only get enriched at next step/s, not re-created.”
- when your client’s business uses some kind of business-specific software, e.g., restaurant management, erp, etc., make sure your core technology stack is compatible with your client’s business software.
- your technology stack should be such that it allows/enables your firm to implement different process flows that your clients need, specific to their business types/needs. in other words, your technology stack should be able to adapt to the process needs of your clients, and it should not result in significant changes in processes at your client’s end.
- to the extent humanly possible for your firm, move as much of hardware technology management responsibilities away from your firm but in secure ways. cloud helps you achieve this quickly and cost-effectively in the overall scheme of things.
- as much as possible, you’d want to control the technology you use to produce work and deliver service to your clients. in other words, the cost of ownership of technology will gradually shift from your clients to your firm. you’ll need to ensure total costing to build technology costs into your cas pricing.