The Definitive Guide to Client Accounting Services.
A new service model called client accounting services has emerged recently in the accounting sector (CAS). The development of cloud-based software and technology has made it possible for businesses to easily provide a wider range of accounting and bookkeeping services to more clients. Businesses that choose to offer CAS can scale their operations and provide greater customer service.
What Is Client Accounting Services?
On the internet, there are numerous meanings of CAS.
But let’s keep things simple. Simply put, CAS is when you serve as your client’s outsourced accounting services department.
An accounting technician and controller often carry out the aforementioned tasks on a regular weekly or monthly basis (rather than annually).
Some people would also argue that CFO-level work belongs in a CAS offering, but I think it belongs more in the advisory services category. Although there is a case to be made for such, for the sake of this essay I’m focusing more on technician and controller jobs.
Accounting firms have resisted providing this kind of service for years. It was seen to be low-margin, ineffective, and an interruption of the primary audit, tax, and consulting services.
Benefits of Cloud Accounting Services:-
Simple Up Sell For Advisory:
Being your client’s virtual accounting department means you have a very solid handle on the business and can quickly identify possibilities for advise upsells.
Demand is high:
A recent Xero poll revealed that 77% of business owners would pay someone to quit performing numerous CAS-related tasks. This appears to be a simple sell.
It’s Much Simpler To Standardize Accounting Firm:
You can scale when you standardize. A cornerstone to standardization is getting rid of as many variables as you can. The more internal control you have, the more standardization is possible.
Increased Client Stickiness:
It is more difficult for a client to leave the more services you provide for them.
Increased Customer Satisfaction:
Given that you play a crucial role in day-to-day operations management, client accounting services can help you develop a deeper, more intimate relationship with your clients.
Steps For Beginning Client Accounting Services:-
Step 1 – Master the Core Technology
Only when you automate as much as possible can you build a strong CAS solution.
The fact that technology can be used to handle the labor-intensive data entry tasks is one of the reasons CAS is expanding so quickly. Then, you essentially take on the role of a workflow manager.
Step 2 – Adjust Your Sales Process
If you’re selling a tax strategy or a once-a-year financial statement, your needs analysis will be very different from one you conduct when delivering a CAS service.
This is due to the fact that client accounting services are really about taking over workflows. These workflows should be as streamlined and effective as feasible thanks to a great CAS offering.
With the aid of the appropriate technology specified in Step #1 above, the sales process must thus evaluate their current workflows and be able to envision what the ideal workflows will look like.
You must clearly picture how you will take over those workflows and enhance the current scenario for your client in this step. Essentially, this is what they are paying you for.
Step 3 – Bundle Client Accounting Services into a Subscription Offer
You’re in a perfect position to start charging your customers a monthly membership because you’re now providing value and services on a recurring basis.
You’ll need to productize your services in order to do that.
A good way to think about it is to first establish the services, applications, and support that you’ll offer regularly before deciding on a monthly fee for your offerings.
Step 4 – Develop Standardized Client Accounting Services Delivery Processes
CAS is a service offer that can be very repetitive. Therefore, ensuring that each repetitious activity is delivered in the same way each and every time is essential to success, your margins, and the satisfaction of your clients.
- a) Select a team member with experience who has completed that work numerous times.
- b) Request that they write out the specific procedures (together with screenshots) to carry out that action the next time it needs to be done.
- c) Examine the steps to determine if anything can be optimized, and make any required adjustments to the procedure.
- d) Review the procedure once every three months to ensure that it is being adjusted for further optimization.
Small and medium-sized enterprises in the US, UK, Australia, New Zealand, Hong Kong, Canada, and Europe can turn to Meru Accounting, a CPA firm, for full outsourced bookkeeping and accounting solutions.
