Client advisory services practices saw 17% year-over-year growth, according to the American Institute of CPAs and CPA.com
Respondents projected 15% continued growth in the current year and a 99% projected median growth for their firms over the next three years. Median CAS net fees per professional also increased 29% year over year to $156,250.
The survey attributes this growth to accounting firms offering more CAS engagements, rather than tax cleanup or annual project work, and the beginnings of standardizing processes and "right price" work with fixed-fee strategies.
"Firms are continuing to double down on client advisory services as a key growth area, but there's still so much more potential for those that take an intentional and strategic approach to building and scaling their CAS practices," Kimberly Blascoe, senior director of CAS Professional Services at CPA.com, said in a statement. "By continuing to shift from financial CAS (transactional to controller services) to higher-level business insights CAS (based on financial and non-financial insights), firms will create more value for clients and be well positioned for ongoing success."
The report found that CAS growth continues to outpace the profession's overall growth, with respondents reporting a stronger increase in CAS revenue growth than the firm's overall reported median growth.
Firms with formal CAS business plans reported nearly $10,000 more in median average annual client revenue, demonstrating that strategy and planning are keys to successful CAS practices.
In addition, roughly half of CAS practices are investing in technology, and those practices report higher total CAS revenue and average client revenue. They also report serving 50% more clients than all respondents.
The survey polled more than 200 U.S. firms from May to July 2024, and it includes data from the 2023 calendar year for the CAS practices that self-selected to participate in the survey.
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