2024 CPA.com CAS Benchmark Insights: Part 2

Read Time: 5:00 minutes

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We unpacked the first four insights from the 2024 CPA.com CAS Benchmark Survey in the last issue. Now, let's tackle Insights 5 through 7, which focus on agility, technology, and pricing strategies. These gears keep a CAS practice humming—or grinding to a halt if not handled well.

Insight 5: Dedicated Staffing and the Challenge of Agility

The survey emphasizes the importance of adaptability and dedicated staffing for CAS success. Here's the thing—dual-purpose CAS/tax roles can feel like a good way to stretch resources when you're starting, but they quickly become a bottleneck. The challenge? Deadline-driven work will always edge out CAS, no matter how high the CAS fees are. I've seen this happen countless times: staff members shelving high-value recurring CAS engagements to meet tax deadlines. The result? Client turnover and a hit to your bottom line.

This isn't just about having a staffing plan—it's about sticking to it. If CAS is your growth area, you need people focused exclusively on it. And if hiring CAS-only staff feels daunting, start with offshore talent for lower-end CAS work.

📢Announcement: CPA.com is doing a free 1 hour CPE on the 2024 CAS Benchmark Survey on Thursday, January 30, 2025. Click here to register.

The survey data suggests that technology has reduced reliance on outsourcing and offshoring. However, from my perspective, technology isn't the issue—closed-mindedness among partner groups is. I've written about the reluctance to embrace offshore solutions in the past, and this survey reinforces why it's worth reconsidering. Offshore talent pools are vast and filled with professionals who value lower-end CAS work. If you're unsure where to start, I recommend seeking a trusted partner (like our sponsor, TeamUp!) to guide you through this process.

Insight 6: Technology Investments—Great, But Prioritize

Every CAS survey reminds us of the importance of technology, and 2024 is no exception. A standardized tech stack reduces training issues, enhances productivity, and improves margins. But here's my advice: if you haven't tackled Insight 5 yet, don't consider diving into Insight 6.

Get your staffing in order first. Why? Because even the most advanced tech stack won't save you if your team is pulled between CAS and other responsibilities. Once you've locked in your staffing strategy, then it's time to invest in technology. Start with a standardized stack tailored to a broader set of clients before honing in on a niche. Think of GL and reporting tools that can be applied across almost any industry.

The survey reveals that only 46% of respondents have an integrated tech stack, so there's a huge opportunity here. Bonus points if you charge setup fees for onboarding clients onto this stack.

If you're struggling with choosing a stack, focus on your ideal client's needs. Build for them, not for the one-off client who refuses to upgrade from QuickBooks Desktop.

Insight 7: The Pricing Revolution

The shift from hourly billing continues, with 84% of respondents using fixed-fee agreements. Here's the surprise: only 2% of firms report using value pricing. I get it—value pricing is tricky to scale, especially in larger firms. But fixed fees are a great middle ground, providing stability for clients and your team.

What shocked me most was that many firms still bill subscriptions in arrears. Billing upfront changes the client relationship. It creates commitment before the work starts, making clients more engaged, responsive, and less likely to ghost you when it's time for a meeting.

Where Do We Go From Here?

This year's CAS Benchmark Survey provides a fantastic roadmap for building a strong practice:

  • Commit to CAS and dedicate a CAS leader.

  • Cast your vision and create a plan.

  • Identify a client niche and define your ideal client.

  • Define services and offer bundled services, including CFO and business insights-level services.

  • Move to dedicated CAS staff who can work week in and week out without the interruptions of "busy seasons."

  • Invest in technology to improve standardization and efficiency and to expand services.

  • Develop a pricing model based on the value offered to the client.

  • Build a marketing and sales process that leads to onboarding.

If I were to tweak the map slightly, I'd suggest:

  • Keep your ideal client profile broad when starting, but plan to specialize in specific niches 2–5 years out.

  • If you're a smaller firm, leverage outsourcing partners for business insights rather than trying to staff it in-house.

  • Solve your people issues first before using tech to try to solve them.

The Obstacles We All Face

Every firm runs into roadblocks, and the survey listed some familiar ones: staffing shortages, client misunderstandings about CAS, tech adoption challenges, pricing struggles, and internal misalignment. These challenges are why I'm working on building a CAS-only community. It'll be a space to share ideas, solutions, and strategies for tackling these hurdles head-on. Stay tuned for details on how you can join!

Also, do not forget to check out CPA.com's webinar on the 2024 CAS Benchmark Survey: Insights and Actions to Guide Your Firm.

Thanks for reading, Luke Templin!

P.S. There are three ways I can help you grow your CAS offerings when you are ready:

  1. Join my How to Start Offering Advisory Services Cohort. The next one starts in May.

  2. Cannot wait until May? Check out the pre-recorded version here.

  3. Automated financial digests for your clients with FinDaily.io

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