Tuesday, November 29, 2022
HomeAccountingWhat's CAS Accounting? | Cover

What’s CAS Accounting? | Cover

By now, you’ve in all probability heard of CAS, CAAS, advisory accounting, accounting and advisory providers—or no matter you need to name it! This development within the accounting business transitions to a give attention to advisory accounting providers moderately than a compliance-heavy service. However, what precisely is it? We’ll break it down for you right here. 

What’s CAS Accounting? 

First, let’s get our acronyms straight. There may be nonetheless debate within the accounting group about whether or not or not this mannequin known as CAS (Consumer Accounting Companies) or CAAS, with the additional A representing “advisory.” For our functions, we’ll seek advice from this mannequin as CAS accounting. 

Now that we all know what to name it, let’s study what it’s! Traditionally, accounting companies have been centered on the compliance aspect of issues. Extra just lately, corporations have been adopting a unique mannequin of enterprise with CAS.  In accordance with the CPA.com & AICPA PCPS 2018 CAS Benchmark Survey Report, the 5 most typical shopper accounting advisory providers supplied are: monetary assertion prep, accounts payable, CFO/controller advisor providers, budgeting/forecasting, and payroll providers.

As an alternative of specializing in simply the nitty gritty i.e., taxes, transactions, and issues which have already occurred, CAS corporations additionally give attention to the long run and attempt to assist their shoppers keep proactive and make one of the best choices for his or her enterprise holistically. Consider the compliance aspect and the advisory aspect as complimentary providers that go effectively collectively. Compliance is the cake, and advisory providers are the icing on high. 

As an alternative of regularly hounding your shoppers for the best paperwork, the work turns into extra of a partnership and the accountant is seen as a part of the enterprise’ group. Accounting corporations seeking to undertake advisory providers into their technique don’t want to dump their compliance shoppers—these shoppers are nonetheless nice and it’s OK to have each advisory shoppers and compliance shoppers. 

When CAS corporations are searching for new shoppers, it’s vital to ask “How can our providers show you how to on the compliance aspect AND the advisory aspect?” Fairly than ensuring the tax return is solely turned in on time, CAS corporations ask themselves “Can we have a look at this tax return and really add additional worth and perspective?” 

Discovering a distinct segment shopper base will be useful when adopting a CAS mannequin, because it lets you present extra service to your shoppers, contemplating you’ll rapidly grow to be well-connected in that area of interest market and be capable of present skilled recommendation.

CAS corporations are about altering the narrative about accounting—you’re not promoting your time, you’re promoting your data and experience. That’s why CAS corporations usually invoice their shoppers upfront with a subscription, or value-based pricing mannequin, and description precisely what providers their shoppers can be receiving. This enables the accounting agency to have yr spherical money movement and receives a commission earlier than the work is finished. For the shopper, there’s no hidden charges, the communication is obvious and the connection is ready to evolve to a partnership between the shopper and the accounting group. 

In accordance with the CAS Benchmark Survey, CAS accounting corporations are rising at double the 5% median CPA agency development fee reported by the 2018 AICPA PCPS and CPA.com Administration of an Accounting Apply (MAP) agency benchmarking examine. With the advantages of providing Consumer Advisory Companies to each the accounting agency and the shopper, it is sensible that the business is seeing a rise in a majority of these corporations. 

In case you’re seeking to keep forward of the competitors (and sustain with the business) it is perhaps time to begin contemplating adopting advisory providers to your accounting agency. Does your agency supply CAS? Tell us within the feedback under.

Cover is a one-stop-shop for all your accounting agency’s wants. Enroll free to see how our full suite of providers might help you right this moment. Start your free trial today



Please enter your comment!
Please enter your name here

Most Popular

Recent Comments