To CAS or Not -- It's Not a Tough Question

I recently wrote (or had CoPilot write) an article titled "You're Already a CAS Firm-Whether You Admit It or Not".  

Last week I attended Xero's Road Show in Atlanta and sat through a session that was taught by Joe Woodard, of Woodard, in which he helped clarify what CAS is and what type of services fall under that CAS umbrella.

CAS = Client Advisory Services

I learned that the AICPA has deemed that Client Advisory Services is what the acronym CAS stands for.  It's not Client Accounting Services nor is it CAAS - Client Accounting and Advisory Services.  

CAS starts with Bookkeeping (Record Keeping, CPA.com calls it Transactional Accounting)

It all starts with the transactions.  The transactions matter, but they are not where you can show your value.  You can show your value in the other 4 areas of CAS.

CAS Includes Controllership Services - BPO (Business Process Outsourcing) - FP&A - Fractional CFO Services 

CAS starts with Bookkeeping and incorporates 4 additional services, which business owners will pay for because they are valuable and can be positioned as such in your marketing, on your website, in your engagement letters, etc.

Thanks for the terms, you say.  What do they mean?  You might ask.  Never fear - Joe defined these as well:

Controllership Services

• Compliance offerings - includes payroll returns, sales tax returns, etc.
• Expense reductions & protections from overruns (budgeting, purchasing/spend policies)
• Internal controls with fraud mitigation
• Credit monitoring & maintaining credit worthiness

BPO (Business Process Outsourcing)

• Operations related to payroll & SALT
• Business licenses/other local permits & compliance
• Worker's compensation insurance filing/compliance
• Payables & receivables processing

• Cash flow projections, dashboards & dashboard monitoring
• KPI's with management implications & advice
• Financial forecasts (contrasted with spend regulatory budgets ofo controllership)
• Regular meetings & accessibility with clients around actionable management advice

Fractional CFO Services

• Fractional executive leadership that leverages FP&A and controllership data to guide leadership
• Decision-making authority that steers business planning and strategy
• Stakeholder relations representation
• Capital management & informing tax strategies

He went further in the presentation and shared a method of determining your pricing for CAS.  SPOILER ALERT!  It does not include how long it takes or your hourly rate.  It's all about the value of your experience and knowledge and your ability to demonstrate that value to your prospects and clients.   If you want to learn more about that you'll need to reach out to Woodard and see if their training program is right for you.  

Based on the AICPA's definition and Joe's breakdown, it seems safe to say that if you are working with clients and give them "Advice" based on the transactional accounting (bookkeeping) work you do, then you are a CAS practice.   But, until you believe you are a CAS practice and start providing real ADVICE like one, you aren't.  Advisory services are what your clients want and need.  If they are not willing to pay for your expertise, then you may need new clients.  

To CAS or Not --  is not a tough question.  The tough question is - If you say you are not a CAS Firm - Why aren't you?