In the current competitive world, where everyone is running a race with the best strategies and resources possible, surviving for a business or a profession is not an easy task. Every now and then, in every field, every business is implementing a new strategy or a new tool so that it can be ahead of others. This strategy planning has worked like magic in a lot of fields.
If we talk about Certified Public Accountant Firms, it has been challenging in recent times for various reasons, like people demanding work-from-home opportunities, digitization of the services provided, and more. Reducing your fees or providing your services with discounted rates is not a preferred option, especially in CPA Firms, if we talk about it specifically. However, strategizing with planning CPA Firms can increase revenues. One way is with Client Accounting Services. In recent years, there have been technological developments in the accounting industry, and CAS (Client Accounting Services), is a part of such technological advancement. In no time CAS has gained popularity in the industry and CPA firms are no exception to this.
In this article, let’s talk about How CPA Firms (Certified Public Accountant Firms), can strategically bloom their revenue with Client Accounting Services. But first, let me clarify your concept of CPA Firms and Client Accounting Services.
What is Client Accounting Service?
Client account services provide specific strategies that concentrate on your crucial challenges. By converting your account data into financial intelligence such as KPI dashboards, real-time cash flow forecasting, true job costing, and profitability reports, you will get advice that goes beyond the figures to give a complete view of your business.
What is a CPA Firm?
CPA stands for Certified Public Accountant. A CPA Firm (Certified Public Accountant Firm) is a licensed firm in the USA where a Certified Public Accountant is the owner and carries out operations at least in part. These firms consist of:
- A Certified Public Accountant.
- Staff accountants and seasoned accountants who are experienced in all areas of accounting.
- Auditors that conduct public and private audit engagements.
Mainly Certified Public Accountant Firms (CPA Firms) provide Auditing Services and sometimes tax and accounting services to the public. However, there are CPA Firms that provide only tax and accounting services only.
Client Accounting Service and CPA Firms – How can CPA Firms increase revenues?
CAS i.e. Client Accounting Services are believed to be the fastest-growing new revenue segment for a lot of accounting firms. A recent research report says that businesses that use an accounting firm’s client advisory services (CAS) report higher profits and greater financial insights. Certified Public Accounting Firms also can avail opportunities to increase revenues by using Client Accounting Services. Consider the below-given strategies to increase revenues for Client Accounting Services:
1. Implement CAS to daily client accounting
In implementing the daily client accounting, it would be a great move to partner with CAS Service centers for the CAP Firms, as it will provide clients with higher-level financial insights.
When CAS does all the work of cleaning up catching up and managing the client’s financials, the CPA will have more time to be the most reliable advisor for the financial management discussions and decisions of the clients. Hence, the clients will be more attracted to acquire services from CPA firms that will generate revenues for CPA firms.
2. Hire a CAS that has software specialization
It is important for CPA firms to decide whether they need a CAS firm with specialized accounting software or generalized accounting software. The best would be when the Client Accounting Service firm is an expert in the same accounting system used by the CPA Firm.
Larger CPA Firms should look for a Client Accounting Service firm specializing in Microsoft Dynamics 365, Sage, or NetSuite, enterprise resource planning (ERP) software featuring customer relationship management (CRM), and e-commerce.
3. Setup a fixed-cost Retainer Relationship with CAS
When a CPA firm wishes to increase revenue, it should go for establishing a retainer relationship with the CAS. A retainer relationship is better for both, CPA Firms and Client Accounting Service Providers as the CPA firm can plan its expenses and CAS can plan its workflow. As a partner, the client accounting services firm is constantly making efforts to find ways of improving technology and saving money for their clients i.e. CPA firms.
4. Opt-in for Centralized CAS
The CPA firm should go for a CAS firm that has a Centralized Service Center, that way the CAS can aid in a CPA firm’s in-house accounting staff or the CAS itself can act as a virtual accounting department for the CPA firm.
By hiring CAS with a service center, the CPA firm can have a full-time accounting staff at a nominal cost that would provide a dedicated team working day in-day out for the CPA firm.
5. Offshore Accounting Service Providers (Offshore CAS) for CPA
Offshore Accounting service providers are a virtual accounting teams that would be located in another state or country than the management services. The main advantage of offshore accounting services is that cost-effectiveness. Compared to the USA-based client accounting service, offshore accounting services can save some bucks for the
CPA firm that ultimately increases revenue for the CPA firms.
Benefits of CAS for CPA firms
- CAS gives an upper hand to the CPA firms using the same, upper hand in the market.
- CAS aids CPA firms to achieve a higher client base.
- It helps CPA firms in growth and Scale higher.
- It projects a CPA firm as more than just an Accounting Service Provider in the market.
CAS- Client Accounting Services is a higher rating source in the CPA firms these days. Be it Offshore Accounting Services or an Onshore Accounting Services, CAS shall prove to be a cost-saving and revenue-generating tool for the CPA firms in the long run for sure.Visit our website for more details regarding our firm. Contact us at +1 201-778-0509 or reach out at [email protected].