CAS Transformation is Only One Piece of Business Transformation

CPA firms today are at a crossroads. Remote and hybrid work intensified the push toward digital transformation. Technology is automating much of their “bread and butter” transactional and compliance work, and clients are looking for more from their advisors. Firms that adapt to these changes are better positioned to thrive, and central to this adaptation is Client Accounting Services (CAS) or Client Accounting & Advisory Services (CAAS).

But while CAS/CAAS is a significant opportunity for firms, it’s just one component of the broader business transformation necessary for a firm’s future growth and success.

Why is business transformation necessary?

Business transformation is about more than offering a new service line. It encompasses all major changes a firm must implement to progress and support its future, including adopting new technologies, streamlining processes, and evolving its business model.

CAS/CAAS is fundamental to this broader change.

Traditionally, firms focused on managing their client’s day-to-day accounting, preparing tax returns, and providing assurance services when their clients needed it for compliance.

Client accounting and advisory services leverage cloud technology, automation, and process improvements to improve efficiency and build capacity to focus on providing more strategic advisory services for clients. These services can include a broad spectrum of financial and non-financial services that give clients greater insights and inform strategy and decision-making.

According to the AICPA’s CAS Benchmark Survey, CAS practices have experienced double-digit growth each year since 2018, and there is still room to grow.

Beyond CAS: A holistic business transformation

While transforming your services to include advisory offerings is crucial, it’s just one piece of the puzzle. Your holistic business transformation strategy should also include:

• Proactive leadership. Adopting forward-looking strategies that anticipate changes and prepare the firm and your team members accordingly.
• Technology integration. Embracing technologies like artificial intelligence, machine learning, and automation to improve service delivery, accuracy and client value.
• Innovative pricing and packaging. Revising pricing strategies to bundle compliance and advisory services together and reflect the value of services offered.
• Talent management. Enhancing efforts to attract, retain, and develop top talent, acknowledging that people are as critical as technology in driving success.
• Operational excellence. Streamlining operations to improve efficiency across all service lines and departments—not just CAS.

First steps towards transformation

The journey towards business transformation begins with a shift in mindset. Firm leaders must embrace change and believe in the potential benefits of transformation. From there, firms can start to build momentum through several strategic steps:

Step 1: Create a vision

Develop a clear vision that includes growth, leadership, process, technology, and talent. This vision should guide all your strategic decisions and initiatives.

Step 2: Build alignment

Share your vision across the firm. All employees — not just partners and managers — must understand, embrace and advocate for this vision.

Step 3: Develop a strategic plan

Translate the vision into actionable strategies. Train your teams, engage with peers who are further ahead on the transformation journey and set clear goals and benchmarks.

Step 4: Allocate resources

Transformation requires significant investments in time and capital. Allocate financial resources to technology and give people the time and space to learn and develop the skills needed for advisory services.

Step 5: Manage challenges and pitfalls

Despite the clear benefits, transforming CAS and the broader business model is fraught with challenges:

For example, some members of the firm may resist the new direction, particularly if they’re accustomed to traditional methods of working. Transformation often leads to disruptions in workflow, which can impact short-term productivity and service delivery. Anticipate these challenges, and don’t let them slow your progress.

Step 6: Foster engagement

Keep the momentum going by maintaining engagement at all levels of the firm. Celebrate milestones and iterate on strategies as needed to adapt to changing circumstances.

While CAS transformation is a vital part of modernizing your firm, you need to recognize it as part of a much larger effort toward comprehensive business transformation. By taking a strategic approach that includes building a shared vision, aligning leadership, and actively supporting people, processes, and technology, your firm can adapt to the profession’s evolution and create sustainable value for your clients and yourself.

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Jim Boomer, CPA, CGMA, is the CEO of Boomer Consulting.