Vscpa growing your_cas_practice_final
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The document discusses client accounting services (CAS) and provides statistics on the growing interest in CAS among accounting firms. It then addresses common goals, prospects, staffing plans, technology solutions, growth plans, marketing challenges, and lead sources for CAS firms. The document also presents two case studies, one on a fintech firm that significantly scaled its CAS client base and services offered, and another on a virtual accounting firm that uses a third party solution for back-end services and task management.
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Vscpa growing your_cas_practice_final
- 1. VSCPA – NoVA Chapter February 20th, 2020
- 2. What is Client Accounting Services (CAS)?
- 3. Why CAS? Growing Interest % of firms offering or planning to offer client accounting services 36% 38% 40% 42% 44% 46% 48% 50% Small Firms Midsized Firms Large Firms 2017 2018 Source: Accounting Today “Year Ahead” survey
- 4. Or
- 5. What are your CAS goals?
- 7. Who are your best prospects?
- 8. Find Your Niche 0% 10% 20% 30% 40% 50% 60% Professional Services Small Business Nonprofits Top CAS Industry Specialties CPA.com 2018 CAS Benchmarking Report
- 10. Make Vs Buy CPA.com 2018 Benchmarking Report CAS Firms Utilizing 3rd Party Services CAS Firms NOT Utilizing 3rd Party Services
- 11. Tech Stack
- 12. Have a Growth Plan? 41% 59% CPA.com 2018 Benchmarking Report Stats CAS Firms Happy with Growth Rate CAS Firms Not Happy with Growth Rate
- 14. 0% 10% 20% 30% 40% 50% 60% 70% 80% Prospects are Price Sensitive Clients Don't Understand the Value of CAS Busy w/ Client Work, No Time to Sell Top Barriers to CAS Firm Sales Success CPA.com 2018 CAS Benchmarking Report
- 15. 0% 10% 20% 30% 40% 50% 60% 70% 80% Existing Client Referral Traditional Bookkeeping or Accounting Client Conversion Existing Tax Client Referral Top Lead Sources for Qualified Leads CPA.com 2018 CAS Benchmarking Report
- 16. Fintech Firm Scales Like Crazy Case Study #1 Key Metrics • 2015 / 89 Clients • 2018 / 1435 Clients Services Provided • Quickbooks Data Entry • Expensify Entries • Bill.com Entries • Bank and Credit Card Reconciliations
- 17. Virtual Accounting Firm uses Dinamis for Back-end Services Case Study #2 The Firm • Virtual Accounting Firm • Remote Accountants act as CFO for SMB The Need • Comprehensive and Intuitive Back-end solution • Management of Unique Daily Tasks
Editor's Notes
- Legacy CAS: bookkeeping & write up work, prepping for tax returns for partnerships or corporate entities Today’s CAS: stand alone services like payment automation all the way up to monthly closed coupled with CFO advisory
- Businesses exiting accounting Expensive to “own” for SMBs One of the fastest growing segments in CPA firms Technology Does it make sense to be in the accounting business if you’re not an accounting firm? SMBs have always been at a price disadvantage with internal staffing for accounting? 63% of stand alone CAS practices require pre-payment of fees 55% margins for stand-alone firms Potential for higher volume and higher margins than traditional tax or assurance engagements. Middle market NFP audit – 30,000 per year at 45 point margin Middle market corporate tax return 10,000 per year at 50 points Middle market CAS engagement 15,000 per month at >= 60 points
- Why you Why now Who else
- Revenue Percentage of the practice? Firm growth Specialization Advisory fees
- What should an audit cost? What does an accounting department cost? This offering lends itself to a value-based pricing model Lacking downward pricing pressure from competitors, the value comes from replacing the cost of an internal accounting team with a less expensive model Controller 130,000 Staff Accountant 65,000 Accounting Assistant 50,000 Base salary 245,000 Benefit load 73,500 Total cost 318,500 Total monthly costs $26,542
- Who do you serve well (or better than anyone else) today? Example of Todd Swisher Your target prospect should be a client you’re already serving or one that’s a lot like your core client today Are you an NFP specialist, SMB, professional services, restaurant chain expert Are you an advisor or someone who just shares results
- You want to pick a segment that’s big enough to be profitable You want to pick a market where you are or can quickly become an industry expert Mention Dixie McCurley, Jake Kaufman
- Staffing may be one of the biggest challenges in scaling your practice Unemployment is very low and many of the staffers you’re seeking could be lured away be 5K. Alexandria firm post for staff senior for CAS practice was empty for over 6 months – they’re still seeking a candidate
- 1 tool strategy 2 tool strategy What works best for your chosen verticals & clients 1 payroll platform 1 expense platform 1 reconciliation – close support tool 1 possibly 2 general ledger platforms
- 80% of decision makers find their vendors (not the other way around) B2B organizations with tightly aligned sales and marketing operations achieved 24% faster three-year revenue growth, and 27% faster three-year profit growth [Source: SiriusDecisions] 70% of customers have already started shopping before they contact a potential vendor
- We helped a client grow from 89 clients to 1435 in 40 months Data entry in QuickBooks, Expensify, Bill.com & bank reconciliations
- What we do for this client Bank reconciliations Credit card reconciliations Expensify entries Invoice processing