State of CAS: Strategic evolution of tech and talent

CPA.com recently partnered with BILL to host the 6th Annual BILL Advisory Council, which brings together a group of the most innovative and influential practitioners in the county to discuss key topics including industry trends, serving SMBs and BILL's product innovation roadmap.

I kicked off the event with a panel discussion with three firms offering client advisory services (CAS) and one thing was very clear from our discussion: The state of the profession is strong, and there are forces that are changing the way that firms operate – for the better. Technology, strategic utilization of talent, and intensifying competitive landscape is challenging firms to change how they have traditionally operated.

Private equity (PE) continues to show keen interest in firms that offer CAS due to its recurring revenue model, making the urgency for firms to adapt and evolve even greater. These are my top takeaways and recommendations for CAS firms based on the state of the profession in 2024.

A standardized, yet flexible, tech stack can be a powerful force for your clients.

Modern accounting firms are finding success in having a tech stack that is tailored to their client base, building core capabilities and adding industry-specific software as needed. Firms recognize that creating an integrated ecosystem creates efficiency, supports decision-making, and drives value for clients and the firm. Private equity-backed firm Hiline has recognized the power of this approach, where a centralized technology management team assesses and manages the tech stack, ensuring it remains aligned with the firm's strategic goals.

A standardized tech stack brings clarity to processes. With core products in place and selectively added solutions tailored to specific verticals, firms can enhance their service offerings without overwhelming their teams with unnecessary complexity. Some firms take their commitment to technology a step further by supporting an internal help desk that understands the tech stack inside out, becoming a critical resource ensuring that staff can quickly resolve issues and stay focused on delivering value to clients.

This shift towards a tech-driven approach requires a change in mindset for many. The traditional hands-on approach gradually gives way to a model where technology handles routine tasks, allowing accountants to focus on higher-level problem-solving and strategic decision-making. A dialed-in tech stack means that staff shift their focus to triaging exceptions within the system, rather than managing every detail manually.

Talent and AI: The workforce keeps changing.

Artificial intelligence (AI) coupled with the growing trend of offshoring are reshaping the talent landscape. Importantly, while AI is revolutionizing many aspects of what we do, it is not seen as a replacement for people but as a complementary resource. Firms are increasingly looking for individuals with a blend of technical skills and the ability to leverage generative AI to augment their work.

AI is driving the creation of new career paths, with firms focusing on growing advisors rather than merely technical experts, and it is opening the door to non-accounting talent to provide value in ways like never before. The future of the accounting profession lies in the ability to blend human expertise with technological advancements, creating a workforce that is both versatile and forward-thinking.

Offshoring, once a domain reserved for large firms, is now accessible to smaller firms, providing them an edge in managing workloads and accessing a broader talent pool. The key is to treat offshore employees as an integral part of the team rather than as external contractors. A perspective shift has made way for a collaborative team culture where "us" versus "them" is no longer a factor, despite time zone differences.

The client experience through onboarding and implementation makes a difference.

Happy clients are sticky clients. Client happiness starts during onboarding and implementation, setting the tone for the entire relationship. Innovative firms in this space leverage a well-thought-out process, including consistent documentation and workflow. The role of “client concierge” serves as a liaison between the firm and the client, alleviating time and focus for delivery teams. This personalized approach also ensures that clients feel heard and valued from the outset, paving the way for a successful partnership.

The role of the client success manager (CSM) is also evolving. Traditionally not aligned with any specific service line, CSMs now play a pivotal role in ensuring that technology changes are smoothly integrated and that clients continue to receive value from the firm's services. This role requires a unique blend of soft skills and technical expertise, making it one of the most challenging and impactful positions within the firm when it comes to technology adoption.

Focus your efforts for the upcoming year.

Accounting firms must prioritize strategic areas to maintain growth and competitiveness in the near term. A focus on growth underscores the importance of building strong relationships and delivering exceptional service. However, with competition intensifying due to private equity investments and non-accounting and non-CPA firms entering the outsourced accounting space, firms are turning to offshore resources to fill talent gaps and ensure their teams remain happy, fulfilled and productive.

Providing clear career paths and opportunities for development is crucial for retaining top talent and ensuring that the firm remains agile in the face of change. Firms that embrace these challenges and strategically align their resources will be well-positioned to thrive in the years ahead. The key lies in maintaining a delicate balance between leveraging technology, nurturing talent, and staying attuned to the competitive landscape, all while delivering exceptional value to clients.

To stay up to date with the latest CAS trends, subscribe to The Advisor’s Edge Newsletter, or visit cpa.com/CAS.

About the author: Kimberly K. Blascoe, CPA, leads CPA.com’s CAS 2.0 practice transformation programs, focusing on helping firms establish and grow optimized CAS practices through consulting, practice development and training offerings. Prior to joining CPA.com, Kim spent more than 30 years in public accounting, which included leading the CAS practice for a Top 20 firm.