The Future of Client Advisory Services

6 min read

The client advisory services (CAS) industry is growing, and many traditional accounting firms are beginning to offer client advisory and/or client accounting services to keep up with the trend and grow their practices. 

According to the CAS Benchmark Survey from the AICPA, PCPS, and CPA.com, CAS practices reported a 16% median growth rate in 2022 which continues a double-digit growth trend that began in 2017.

While this might seem like news that only impacts the CAS industry, it actually affects all businesses because it means more opportunities to enhance the way back offices are run and improve business operations with the expert financial insights and guidance that an experienced team and advanced technology can provide through smart outsourcing opportunities.

What Are Client Advisory Services?

Client advisory services (CAS) are sometimes referred to as client accounting services or client accounting and advisory services (CAAS). While there is no one-size-fits-all definition of CAS, all terms refer to the same general business model: accounting firms that offer third-party bookkeeping, accounting, and advisory services to businesses.

Some CAS providers focus more heavily on transactional accounting, while others focus more heavily on strategic, advisory, and CFO services. Some CAS providers are equipped and staffed to offer a full-service combination of the two.

What Do Client Advisory Services Include? The Complete Range of CAS Services

Client advisory services can include a wide array of services that exist on a spectrum. The list ranges from nuts-and-bolts financial CAS to strategic business insight CAS including service categories such as transactional accounting, controllership, CFO finance, CFO business insights, and trusted advisor business insights.

These categories of client advisory services include services such as:

• Accounting
• Financial reports
• Data collection and financial metrics
• Month-end close
• Accounts payable
• Expense management
• Accounts receivable
• Invoicing
• Payroll
• Client and vendor management
• Tax preparation and filing
• Compliance and audit-readiness
• Cash flow management
• Budgeting
• Forecasting
• Management reporting
• Financial planning and analysis
• Financing guidance
• Non-financial metrics
• Business insights
• Financial strategy
• Data analytics
• Financial modeling
• Market analysis
• Human capital management strategy

As you can see, outsourced client advisory and accounting services are an excellent strategy for managing your back office and even the financial management and strategic planning that a CFO would provide.

Read More: What Mid-Market Companies Should Look for in Advisory Services

How Client Advisory Services for Businesses Are Changing

As the CAS industry is expanding, it is also undergoing major transformations spurred on by increasing demands and the beginning of the next technological revolution.

Increased Demand: Staffing Shortages and the Remote Workplace

Staffing shortages, high employee turnover, and exorbitant onboarding costs have made the idea of outsourcing non-central business functions increasingly appealing to business leaders because it transfers the staffing burden from their businesses to their outsourced CAS providers. Plus, the shift to remote workplaces has increased the adoption of cloud technologies and virtual communication tools that make outsourced client advisory services much easier to facilitate successfully.

Transforming CAS: Revolutions in Technology

The automation provided by existing bookkeeping, accounting, and data collection technologies has already revolutionized the industry. With the advent of artificial intelligence (AI), these technologies only stand to improve and become increasingly powerful. As AI begins to take over more and more of the daily, repetitive, transaction-based tasks of the back office, CAS providers will focus more and more on the "advisory" aspect of their services such as financial analysis, CFO insights, CFO finance, and data-based business management insights in addition to financial modeling, market analysis, and financial strategy.

Bolster Your Business's Future With Outsourced Advisory Services

CAS providers offer a myriad of benefits and advantages to businesses including:

Saved Money

By outsourcing a business's back office (bookkeepers, accountants, controller, and chief financial officer), business leaders can save hundreds of thousands of dollars on in-house salaries and full-time employee benefits.

Saved Time

Outsourced CAS services save business owners loads of time. When you no longer spend time on your bookkeeping and accounting tasks, you have more time to focus on high-value tasks that are central to your business's core value proposition.

Reliable Reporting

Outsourced CAS providers establish bookkeeping and accounting systems that ensure accurate data collection and timely reporting. As a result, you'll always have access to reliable financial reports for management decisions.

Reduced Fraud Risk

Sound systems of accounting and a complete back-office team mean that your business will be much less vulnerable to the risk of internal fraud because your systems will be secure, and your team will be large enough to provide adequate separation of duties and distribution of power.

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Compliance Management

The burden of due diligence and keeping up with current rules and regulations rests on an outsourced CAS team. An outsourced provider will ensure your accounting systems and record-keeping strategies are accurate and compliant, helping you avoid unnecessary penalties and fees due to regulatory exceptions detected during an audit.

Capital Management

An outsourced CAS provider has the experience and connections to help your business obtain the capital it needs to grow - whether through investors or bank loans. Additionally, your reports and historical financial data will be available in an easy-to-read format that investors can easily understand in order to get a clear picture of your business's financial health and future potential.

Read More: Outsourced Accounting Costs for Mid-Market Companies

Improved Operational Efficiency

Analysis and advisory services can help you evaluate every aspect of your business's operation to improve efficiency and productivity organization-wide.

Navigating Transitional Periods

Whether you're operating a turbulent startup, getting ready to exit your company, or your business is experiencing a period of growth, expanding into a new market, or undergoing a merger or acquisition, the experience and know-how of an outsourced CAS provider can help you successfully navigate these periods of transition.

Generate an ROI on Outsourced Client Advisory Services

Businesses stand to generate a substantial ROI on the cost of outsourced advisory services as a result of improved financial management, additional cost savings, increased productivity, operational efficiency improvements, better cash flow management, improved forecasting, smart financial strategizing, and maximized profits.

With outsourced CAS, you can maintain a financially healthy, thriving business that grows and expands into the future.