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PRACTICE MANAGEMENT

Many top-performing CAS practices use vari- they factor in what it might cost a client to do the
ous forms of fixed-fee or value billing, though they work they provide in-house.
may still bill a minority of their clients by the hour. Another advantage of moving away from
All four of the firms cited in this article charge hourly billing is that it allows firms to use pack-
clients a fixed monthly fee based on the estimated age pricing. Offering clients a “menu” of service
hours their engagement will require, as well as its options helps them see what you have to offer and
scope and complexity. When determining pricing, determine what they do and don’t need, said Beth
all four of these firms also take into account the Allen, CPA, partner and head of client accounting
value the engagement will bring their client, and services with GreerWalker. Her firm gives clients
a choice of three packages, which clients can then
customize by adding or omitting services. Jason
Miller, director of business consulting services with
AICPA RESOURCES Dean Dorton, said his firm likewise allows clients
to choose from three pricing levels: full outsourced
Articles accounting ranging from day-to-day transactions
“7 Tips for Starting a Client Advisory Services Practice,” JofA, Aug. 1, 2021 (such as bill paying) through CFO services; day-to-
day transactions only; or outsourced controller and
“Remove Roadblocks to CAS Practice Growth,” JofA, July 28, 2020
CFO services only. The latter option works well for
“Professional Liability Spotlight: Minding the Expectation Gap in a CAS clients who have in-house bookkeeping staff but
Engagement,” JofA, Aug. 1, 2018 want more advanced advisory services, said Miller,
“Client Accounting Services Driving Revenue Growth,” JofA, Feb. 1, 2017 who works out of the firm’s Lexington, Ky., office.
Podcast episodes
2. Establish dedicated CAS staff
“The 4 Pillars of Starting or Growing a CAS Practice,” JofA, Oct. 21, 2021 Many top performers have found that, for a CAS
“What to Know Before Offering Client Accounting Services,” JofA, April practice to operate most efficiently, it helps to have
21, 2020 staff who are devoted solely to CAS. In the CAS
Online resource Benchmarking Survey, in fact, a median of 56%
of top performers said all their CAS staff worked
CPA.com Practice Area Resources: Client Advisory Services
entirely on CAS, versus a median of 43% of all
White papers respondents.
Accelerate Into Advisory (member login or registration required) CAS staff can be more effective when they’re not
dividing their time between CAS and other areas of
Setting the Stage for CAS Success
the firm, Miller said. CAS is “not a service that you
can just do part time,” he said. “You can’t disappear

IN BRIEF touch with them and give clients clients and firm leadership about what
greater certainty about what they will CAS is and how it can benefit them.
■ In the second Client Advisory Services be charged. Clients will then have a better sense
Benchmark Survey, top-performing ■ Top-performing practices often of which services they need, and firm
CAS practices were identified as the limit the number of general ledger leaders will be more supportive of the
25% of respondents with the highest software programs they support, even CAS practice and more likely to refer
net client fees per professional. if this means turning away prospects clients to it.
Leaders from these top-performing who refuse to use those programs. ■ Top-performing firms advise accepting
practices identified some factors that Streamlining technology makes for only clients who are willing to work
contributed to their success. greater efficiency and reduces the with the processes the CAS practices
■ Moving away from hourly billing allows number of programs staff need to use. Concentrating on a few niches can
CAS practices to adopt billing methods learn. also help a CAS practice gain focus and
that encourage clients to stay in closer ■ Top performers recommend educating expertise within a certain area.
To comment on this article or to suggest an idea for another article, contact Courtney L. Vien at Courtney.Vien@aicpa-cima.com.

12 | Journal of Accountancy April 2022