Unlocking year-round revenue with CAS

Tax season is often seen as the peak revenue-generating period for firms, but what if your firm could maintain steady, year-round revenue while strengthening client relationships and diversifying your service offerings? That’s where Client Accounting Services (CAS) comes in.

Why CAS is gaining momentum 

In recent years, CAS has become one of the fastest­ growing service lines for tax avd accounting firms. According to a 2023 AICPA survey, nearly 60% of firms offering CAS reported double-digit revenue growth, with many citing their clients’ demand for ongoing financial support and advisory services.

Key industry trends driving CAS growth include:

• A shift toward advisory: Clients want more than compliance work; they want strategic insights that help grow their businesses.
• Technology advancements: Cloud-based accounting platforms such as OuickBooks Online and Al-powered tools make it easier to manage your clients’ books in real time.
• Outsourcing financial functions: Small- and medium-­sized businesses are increasingly outsourcing bookkeeping, payroll, and financial reporting to focus on core operations.

Best practices for successful CAS implementation 

• Define your scope: CAS can range from basic bookkeeping to high-level CFO services. Clearly define what’s included in your packages; think payroll, accounts payable/receivable, cash flow management, budgeting, and strategic forecasting.
• Leverage cloud technology: Cloud-based tools streamline workflows, improve collaboration, and provide clients with real-time financial data.
• Adopt a value-based pricing model: Move away from hourly billing. Instead, use fixed fees or tiered packages based on the complexity of services provided. This creates predictable revenue streams and better aligns with client expectations.
• Automate where possible: Use automation for recurring tasks such as invoicing, payroll, and bank reconciliations. This frees up your time to focus on higher-value advisory work.
• Develop advisory services: CAS isn’t just about numbers. Dive into cash flow projections, budgeting strategies, and KPI tracking. Clients appreciate proactive advice that helps them make smarter business decisions.

5 steps for firms new to CAS

1. Start small and scale: Begin with existing clients who could benefit from additional services. Offer them basic bookkeeping or payroll, and gradually expand into advisory roles.
2. Invest in training and tools: Ensure your team is comfortable with cloud-based accounting platforms, and understands how to interpret financial data for advisory services. Many providers offer certification programs that can boost your team’s expertise.
3. Standardize processes: Create workflows and templates to ensure consistency across clients. Documented processes make it easier to onboard new clients and scale your CAS practice. 
4. Communicate your value to clients: Many clients don’t realize the benefits of CAS until they see how it impacts their bottom line. Highlight how ongoing financial oversight can reduce risks, improve cash flow, and lead to better decision-making.
5. Package and price strategically: Offer tiered service levels to meet the varied needs of your clients. Consider bundling services such as payroll and financial reporting with strategic forecasting to create comprehensive packages.

Pitfalls to watch out for 

While CAS offers substantial growth opportunities, it’s not without challenges. Here are a few pitfalls to be mindful of:

• Overextending resources: Taking on too many clients too quickly can strain your team and compromise service quality. Start slowly and scale strategically.
• Inadequate training: CAS requires a different skill set than traditional tax prep. Ensure your team is trained in advisory skills and is familiar with the tools you’re using.
• Technology misalignment: Not every client will be a good fit for cloud-based tools. Ensure the platforms you use align with your team’s capabilities and your clients’ needs.
• Scope creep: Clearly define services in your engagement letters to avoid clients expecting “extra” services without additional compensation.
• Client expectations: Set realistic timelines and deliverables. Overpromising and underdelivering can damage client trust.

The long-term benefits of CAS 

• Steady revenue: Year-round service offerings reduce the feast-or-famine cycle that often comes with tax season.
• Deeper client relationships: Ongoing financial involvement positions you as a trusted advisor rather than a once-a-year consultant.
• Higher firm valuation: Firms with recurring revenue streams often have higher valuations, which is crucial for future succession planning or potential sales.

Final thoughts 

Expanding into CAS isn’t just about adding a new revenue stream, it’s about transforming your firm into a year-round strategic partner for your clients. By leveraging technology, adopting value-based pricing, and focusing on advisory services, your firm can create sustainable growth while offering clients the high-value insights they need to succeed.

If you’re considering adding CAS to your service lineup, start small, build your processes, and focus on creating meaningful client relationships. With careful planning and attention to potential pitfalls, CAS can become a cornerstone of your firm’s long-term success.