real-time business insights are the game changer.
by hitendra patil
the definitive success guide to client accounting services
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q: i saw that cas is now the no. 1 revenue growth driver for top 100 firms. why is cas so big now – what changed?
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a: client accounting services is now gaining more intense attention from firms of almost all sizes. cas is the no. 1 revenue growth driver of the top 100 firms in the country. why has cas has become so popular? to know this, one needs to recognize a bit of the history of the profession and the technology together.
go back in time, 10 to 15 years. business owners used desktop accounting software from their offices. they entered bills, issued invoices, etc., using that software. that work was not accounting in the real sense. it was more of entering business transactions in software. business owners tried to maintain financial records in the accounting software. then the business owners would give a copy of that software to the accountant. or the accountant would go to their offices to review, adjust and fix as needed. the accountant’s expertise was used later, only after transactions were created.
now the cloud makes it easier to integrate most business software. that’s why you see more software coming into the market, from bill payment to credit card processing. the cloud has liberated the accounting data that was once locked inside desktop software. it is available in real time to accountants for sense-making purposes. that’s where things are going. today, the accountant and the client can work with the same software at the same time. accountants can oversee what’s happening in a business on a day-to-day basis.
“almost overnight, the need to work from home forced many firms to go on the cloud. it exposed firms to the advantages of integrations and online client collaborations. these factors strengthened accountants’ perception as the ‘most trusted advisors.'”
the cloud changes everything. it provides freedom from the location of the data. expert accountants can guide the business owner at the right time. not weeks or months after the business transactions occur. for example, the accountants can easily say, “hey, look, your inventory is increasing, and your sales are not growing that fast. why are you accumulating inventory? it’s going to be a problem for you.” accountants can now deliver near real-time business-guiding insights. many business owners have noticed this shift.
the younger generation has not experienced desktop software. they’re aware that somebody can look at their accounting data in the middle of the night if required. as a result, they are more inclined to give that work to the accountant. post-pandemic, everybody has to focus on their craft. for example, a restaurant owner would rather work to make the restaurant successful than spend time on accounting.
integrating different software makes it possible to reuse the data once created. accountants do not always need to do data entry (which costs time and money). the time freed up can be utilized to find insights from the data. accountants’ expertise applied to such insights creates actionable advice to deliver to clients. it is now more possible and profitable for accounting firms to take on more core accounting functions from their clients.
smaller firms had resource constraints that made such work cost-prohibitive for them. but cloud technology has minimized such challenges. even smaller firms can provide robust and valuable cas packages to their clients. efficiency and productivity gains have enhanced the profitability of cas-related work. it has also increased the average number of clients serviced per staff. hence, cas firms experience growth in revenue and profit per staff. your staff gets freed from routine, mundane data-handling work to do more analytical and advisory work. additionally, this helps enhance employee satisfaction levels.
the pandemic clouds had several silver linings for the accounting profession. first, governmental remedial measures in response to the pandemic, like ppp loans and forgiveness thereof, made clients interact more with their accountants. that reinforced accountants’ value in clients’ minds.
second, almost overnight, the need to work from home forced many firms to go on the cloud. it exposed firms to the advantages of integrations and online client collaborations. these factors strengthened accountants’ perception as the “most trusted advisors.”
third, the cloud optimized productivity and efficiency gains in accounting work. the increased revenue and profit per staff make cas attractive for accounting firms.
fourth, venture capital companies and investors have recognized the shift in market practices. they are pouring money into the financial technology (fintech) companies. the accounting profession has seen the emergence of several new fintech entrants in recent times. they address new needs with new or enhanced software solutions. they solve old problems in new, efficient and more profitable ways. accountants are at the right place at the right time to enjoy this positive flux in the marketplace. cas has, undoubtedly, become the preferred vehicle for accountants to leverage this once-in-a-generation opportunity.