The pace of change in every aspect of the profession is such that it can be difficult to keep up, and the scope of those changes is so broad that it can be difficult to wrap your head around them. Accountants need a whole new set of rubrics to guide their thinking and to help them make sense of what's happening.
https://www.accountingtoday.com/list/7-eye-opening-ideas-for-digital-cpas
Article source:
NEW YORK (Dec. 6, 2022) – Client Advisory Services (CAS) practices reported a median growth rate of 16%, and firms are optimistic about the continued opportunity in this practice area, according to a new survey by CPA.com and the American Institute of CPAs (AICPA). Respondents projected 15% continued growth in the current year, with 72% of All Respondents and 81% of Top Performing firms expressing confidence that their pipeline shows opportunity for continued growth.
CAS has been the fastest growing service area in public accounting and is projected to continue its impressive trajectory, according to the CPA.com & AICPA PCPS Client Advisory Services Benchmark Survey report. The report, which polled a cross-section of U.S. firms with CAS offerings and collected data from calendar year 2021, reflected a continued double-digit growth trend since the survey began tracking benchmark data in 2018. Additionally, net client fees per professional (NCFPP) increased to $231,217 for Top Performers (compared to $185,000 in 2020), suggesting more leverage among CAS practices and increasing use of automation capabilities.
The survey also indicated CAS practices are continuing to use technology to innovate and embrace new business models to maximize value for staff and clients. This year's report identified an emerging trend related to the business model with more than a quarter (26%) of All Respondents and 33% of Top Performers outsourcing bookkeeping services, freeing up staff to focus on higher value client work.
“For more than a decade, we’ve recognized the potential of client advisory services to help CPA firms provide more value for clients through expanded offerings,” said Erik Asgeirsson, president and CEO, CPA.com. “Today, firms that have been intentional and strategic in their approach to building and scaling their CAS practice are thriving and poised for continued growth.”
The AICPA and CPA.com define CAS as Client Advisory Services, a practice to help clients outsource their accounting needs with services spanning a spectrum of financial, accounting, and advisory-related offerings. The vision of CAS is to provide higher value to clients and deepen the trusted advisor relationship, allowing clients to focus on their core competencies and deliver on their value proposition to customers. CAS offerings are enabled by technology and processes that deliver timely data and provide clients with deeper business insights to inform strategy and decision-making. While basic compliance work and operational services are foundational to CAS, continuous business planning and advisory discussions supported by financial and non-financial data, delivered through industry-specific KPIs, is fundamental to the differentiation and success of this service in the accounting profession.
The survey offers numerous insights about the evolution of CAS offerings and opportunities for future growth. Some of the takeaways include:
CPA.com will hold a free webinar Tuesday, Jan. 17 at 2 p.m. ET to highlight key insights from the survey and offer practical strategies for firms to strengthen and develop their CAS capabilities. The company’s CAS Roadmap, CAS Client Assessment and CAS Financial Planning & Analysis workshops, CAS Firm Self-Assessment, whitepapers and other resources are also available for firms looking to start or expand a CAS practice. To learn more, please visit cpa.com/client-advisory-services.
Methodology
The CAS Benchmark Survey was conducted online from June to August 2022 and includes data from calendar year 2021 from 167 CAS practices whose data was complete and valid. Besides general results, the survey analyzes the performance of top CAS practices, defined as those with the highest net client fees per professional (NCFPP).
About CPA.com
CPA.com brings innovative solutions to the accounting profession, either in partnership with leading providers or directly through its own development. The company has established itself as a thought leader on emerging technologies and as the trusted business advisor to practitioners in the United States, with a growing global focus.
Our company’s core mission is to drive the transformation of practice areas, advance the technology ecosystem for the profession, and lead technology research and innovation efforts for practitioners.
A subsidiary of the American Institute of CPAs, the company is also part of the Association of International Certified Professional Accountants, the world’s most influential organization representing the profession. For more information, visit CPA.com.
About the Association of International Certified Professional Accountants, and AICPA & CIMA
The Association of International Certified Professional Accountants (the Association), representing AICPA & CIMA, advances the global accounting and finance profession through its work on behalf of 689,000 AICPA and CIMA members, students and engaged professionals in 196 countries and territories. Together, we are the worldwide leader on public and management accounting issues through advocacy, support for the CPA license and specialized credentials, professional education and thought leadership. We build trust by empowering our members and engaged professionals with the knowledge and opportunities to be leaders in broadening prosperity for a more inclusive, sustainable and resilient future.
The American Institute of CPAs (AICPA), the world’s largest member association representing the CPA profession, sets ethical standards for its members and U.S. auditing standards for private companies, not-for-profit organizations, and federal, state and local governments. It also develops and grades the Uniform CPA Examination and builds the pipeline of future talent for the public accounting profession.
The Chartered Institute of Management Accountants (CIMA) is the world’s leading and largest professional body of management accountants. CIMA works closely with employers and sponsors leading-edge research, constantly updating its professional qualification and professional experience requirements to ensure it remains the employer’s choice when recruiting financially trained business leaders.
Article source:
John Pace, CAS leader at GRF CPAs and Advisors, wins top award
NEW YORK (Dec. 5, 2022) – John Pace, CPA, has been named the recipient of CPA.com’s Digital CPA Innovative Practitioner Award, which recognizes individuals who are driving the accounting profession forward through innovative thought leadership, processes, services and technology implementation. Pace successfully used technology and forward-looking practice development strategies to drive advisory services and deliver critical business support to clients.
Pace is the Partner & Director of Outsourced Accounting and Advisory Services at GRF CPAs and Advisors. Since being promoted to lead the firm’s client advisory service (CAS) practice in 2017, Pace has led a transformation that has grown the CAS practice from $3 million to $8.5 million in gross revenue. Along the way, he has built a culture that is flexible, consultative, and fully remote, encouraging time off and working hours that create a healthy work-life balance. This people-first approach has helped shield GRF’s CAS practice from the recruitment and retention challenges many other firms have encountered in recent years.
“While John is a great proponent of shifting business models, value-based pricing and technology implementation, it’s his focus on people that is enabling true transformation and maximizing value for his staff and his clients,” said Erik Asgeirsson, president and CEO of CPA.com. “His innovative approach to empowering, developing and creating balance for his team not only enables them to better serve clients, it creates a key competitive advantage for attracting next generation talent.”
Hannah Smolinski, president of Clara CFO Group, and Steve Chaney, founder and CEO of Chaney & Associates, were both named runners-up.
Smolinski, President of Clara CFO Group, created more than 100 videos when the pandemic struck in 2020 to provide education and guidance to small business owners who needed assistance from the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) programs.
Chaney, founder and CEO of Chaney & Associates, uses cloud-based solutions for GL, bill payment, spend management, payroll and more to close the books each week for clients. By relying on automation and shifting pre-accounting work to clients, his 20-person team is able to serve more than 1000 clients.
“All of the practitioners recognized this year have demonstrated the practical impact of embracing new technologies and innovative business models to deliver a higher level of service to their clients and grow their businesses,” said Kacee Johnson, CPA.com’s vice president – Strategy & Innovation. “For practitioners at firms of all sizes, these leaders are showing the way forward as our profession rises to meet new challenges and opportunities.”
Pace, along with those receiving runner-up and honorable mention awards, will be recognized onstage at Digital CPA, CPA.com’s annual conference for practitioners focused on technology and its impact on the accounting landscape.
To find out more about what sets this year’s nominees apart, and to see the full list of winners including honorable mentions, please visit CPA.com’s Digital CPA Innovative Practitioner Award page. For innovative tools and ideas that can help firms deliver even more value to clients, visit CPA.com.
About CPA.com
CPA.com brings innovative solutions to the accounting profession, either in partnership with leading providers or directly through its own development. The company has established itself as a thought leader on emerging technologies and as the trusted business advisor to practitioners in the United States, with a growing global focus.
Our company’s core mission is to drive the transformation of practice areas, advance the technology ecosystem for the profession, and lead technology research and innovation efforts for practitioners.
A subsidiary of the American Institute of CPAs, the company is also part of the Association of International Certified Professional Accountants, the world’s most influential organization representing the profession. For more information, visit CPA.com.
Article source:
Today’s Top 100 Most Influential People in Accounting, and Kalil Merhib was named “one to watch”.
https://www.accountingtoday.com/list/the-top-people-in-public-accounting-2022
Article source:
CAS practice functions differently than the traditional compliance-based practice and can't be built or managed the same way. That means CAS practice leaders may encounter challenges when trying to grow a successful practice within a traditional full-service firm.
Article source:
