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house. It focuses on more transactional account-
ing and controllership services, such as accounts CAS by the numbers
payable or receivable, payroll, reconciliations, and
According to the most recent data from CPA.com and the AICPA:
cash flow management. It offers a historical view
of company performance, “but there is a limited ■ The 2020 CAS Benchmark Survey found that firms grew at a median rate
ability to help clients make better business deci- of 20%, almost twice as fast as the 12% reported in the 2018 survey and
sions,” said John Yeager, CPA, managing director more than three times the average practice growth of 5.7% reported by
at WP Edge, a roughly 100-person CAS practice other 2020 CPA firm benchmark surveys.
arm of 700-person firm Whitley Penn. Yeager is
■ In 2020, the mean gross profit margin for CAS was 47% for top
based in Ponte Vedra Beach, Fla.
performers and 34% for all respondents.
Many critical technologies — such as cloud-
based accounting and financial management Watch for the results of the 2022 CAS Benchmark Survey, conducted by
software — helped drive the growth of financial CPA.com and the AICPA.
CAS. However, as these tools have become more
prevalent, “they have become table stakes,” said
Missy Thompson, partner, client accounting THE DEMAND FOR DEEPER INSIGHTS
services practice leader, at Chicago-based Baker The pandemic has driven increased demand About the
Tilly US LLP. for business insights CAS, said Kalil Merhib, author
Some firms have taken it a step further. vice president, Growth & Professional Services,
Anita Dennis is a
They expanded their services to offer “busi- CPA.com, which has been raising awareness of
New Jersey-based
ness insights CAS,” augmenting the financial the evolution of CAS. As clients searched for new
freelance writer.
reporting that is the hallmark of financial CAS and unique business strategies and to adapt to
with additional insights, which they generate accelerating marketplace changes, CPAs were able
by examining clients’ financial and nonfinancial to step in to collaborate with them and guide them.
information and tracking their clients’ progress The conversation between CPAs and clients shifted
against industry-specific KPIs. Business insights from focusing on providing compliance documents
CAS involves going beyond accounting to help such as tax returns or financial statements to offer-
clients “set goals, determine how to meet them, ing advice and insights to help clients navigate the
and decide what technologies they need to make many unexpected developments.
smart business decisions,” said Jodie Heal, CPA, “Clients got a taste of having these types of
president of seven-person firm Heal Accounting advisory conversations with firms, and firms got a
in South Thomaston, Maine, whose entire firm taste of what it was like to deepen the value and
is devoted to CAS. “Clients see it as partnering services they can provide as their clients’ trusted
with you for business success.” business adviser,” Merhib said.
Business insights CAS is more than high-level That shift mirrors a transformation that is
trend analysis based on what the financials are occurring in companies’ finance function, involv-
saying, Yeager said. Instead, clients are seeking ing greater digitization and a demand for deeper
help in areas such as fractional CFO services, insights, according to Merhib. “Companies want
business transformation, financial planning and information faster and more often,” he said. Like
analysis, and forecasting and cash flow budgeting, CAS practices, finance functions are moving from
as well as how to address industry-specific prob- focusing on data to emphasizing business insights.
lems. “They want to know not only that revenues Many smaller companies that don’t have CFOs
are up but specifically why and how best to react have completely outsourced their accounting and
to and enhance that growth,” Yeager said. finance functions. In her CAS practice, Thompson’s
IMAGE BY ARTUR DEBAT/GETTY IMAGES and technology arm, provides guideposts to acquisitions, and a host of other concerns. “We
team provides businesses advice and assistance with
CAS 2.0, a methodology and framework
strategic planning and management, mergers and
outlined by CPA.com, the AICPA’s business
can offer expertise in many areas, beyond just one
help firms make that step. It offers specific
components that can help firms scale as they
person’s knowledge,” she said. “We want to make
update their business practices to deliver business
sure our clients can see the whole picture.”
insights CAS (see the graphic “CAS 2.0 Practice
A CAS team can provide tremendous value,
Strategy Focus Areas”).
journalofaccountancy.com Heal said. “When you can have a team of people November 2022 | 7