"They swapped out ‘accounting’ for ‘advisory’ in CAS, but I still believe it’s 'client accounting and advisory services.' At scale, especially with small businesses, it’s hard to separate the two. You need a foundational understanding of their accounting model to help architect it in a way that truly tells their story." – Adam Hale The finer details of this episode:The shift from compliance work to advisory roles in accounting.Differences between traditional accounting firm structures and mature CAS practices.Importance of leveraging resources and delegating tasks within accounting firms.Financial metrics and profitability considerations in CAS practices.The concept of selling access rather than time in service pricing.The role of regular meetings in managing client expectations and scope creep.Adoption of a corporate-like structure for improved efficiency and adaptability.The impact of a subscription model on client relationships and service delivery.Strategies for accounting firms to remain competitive in a changing industry.Episode resources:● Summit Virtual CFO by Anders website: https://www.summitcpa.net/● If you have questions or would like to be a guest on the show, email us at mcpasuccessshow@anderscpa.com● Check out the Virtual CFO Playbook Course: https://vcfoplaybook.summitcpa.net/ Timestamps:Welcome and Introduction (00:00:00)The host introduces the podcast and its mission to provide insights for accounting firms.Overview of CAS (00:00:22)Tom and Adam discuss Client Accounting Services (CAS) and advisory services, highlighting their significance.Defining CAS (00:00:46)Adam explains the evolution of CAS from "Client Accounting Services" to "Client Accounting and Advisory Services."Importance of Accounting in CAS (00:01:02)Adam emphasizes understanding accounting models for effective advisory services, especially for small businesses.Traditional vs. CAS Structures (00:01:52)Discussion on differences between traditional accounting firms and mature CAS practices, focusing on corporate structure.Leveraging Resources in CAS (00:02:06)Adam talks about the importance of leveraging resources and delegating tasks for scaling CAS practices.Transitioning from Traditional Models (00:03:29)Tom shares challenges faced by accounting firms transitioning from traditional models to more scalable structures.Financial Metrics in CAS (00:04:35)Adam discusses financial metrics, contrasting traditional firm profitability with CAS models and their structures.Understanding Profit Margins (00:06:19)Tom and Adam analyze profit margins in CAS compared to traditional firms, aiming for higher profitability.Building Client Relationships (00:09:24)Tom highlights the importance of long-term relationships with clients for smoother operations and better service.Delegation and Offshoring (00:10:06)Discussion on the necessity of delegating work and utilizing offshore teams to enhance efficiency.Measuring Performance in CAS (00:11:59)Adam explains the shift from traditional hourly metrics to responsibility-based performance measures in CAS.Book of Business Targets (00:12:57)Tom and Adam discuss the importance of setting clear book of business targets for team members.Compensation Structure in CAS (00:13:39)Adam outlines how compensation structures differ in CAS, focusing on book of business rather than hours worked.Efficiency Over Hours (00:16:32)Tom advocates for valuing efficiency and client satisfaction over the number of hours worked.Promoting the Virtual CFO Playbook (00:17:33)An unnamed speaker promotes a virtual CFO playbook aimed at helping firms scale and improve client experience.Selling Access in Advisory Services (00:18:30)Tom and Adam discuss the concept of selling access in high-level advisory services, shifting the value proposition.Access to Advisory Services (00:18:51)Discussion on the unpredictability of advisory work time and the subscription model for client access.Managing Client Expectations (00:19:41)Strategies for addressing scope creep through scheduled meetings and clear communication with clients.Rethinking Practice Structure (00:20:20)Encouragement to adopt innovative practices beyond traditional models for growth and efficiency.Corporate Structure in Accounting (00:20:31)Exploring the benefits of a corporate-like structure in accounting practices for better resource sharing.Closing Remarks and Resources (00:21:01)Invitation to visit the website for more tips on achieving success in modern CPA firms.
