CAS is not CAS.
Most firms today have some level of client accounting services (CAS). Many firms are deciding what to do related to client advisory services (CAS).
Other than the acronym, accounting services have little to do with advisory services. Accounting services report on historical information. Advisory services are prospective and designed to position the client for future success. Those are two very different mindsets. Some firms are even trying to integrate advisory services into their current accounting services practice. That is a struggle for staff because of the different mindsets that are required.
Staffing requires a different mindset as well. To enable your advisory practice, your advisory staff does not need to be CPAs. Perhaps the advisory staff should not be CPAs. CPAs have a compliance mindset. They need to know what the rules or standards are. Make sure that your advisory services staff has outstanding communications skills — especially listening skills. Consider finding staff with degrees in communications, marketing, management and/or business administration.
Your successful advisory practice will not be seasonal. Change the mindset of everyone in the firm. Your clients need advisory when they need your guidance. That isn't tied to tax or financial reporting deadlines.
Many firms think that launching advisory services will be relatively simple. Change your mindset. Advisory services are complex. When you have multiple compliance clients in a single industry (such as manufacturing), you can transfer knowledge from client to client because of the similarity in accounting standards or tax regulations. You will not be able to transfer knowledge as easily when providing advisory services. Every client's wants and needs will likely be different, possibly very different. Solutions will vary from client to client.
Advisory services deserve an alternative to hourly billing. Change your mindset. Value billing is the way to go. For example, most good planning engagements will provide more value to the client. The same can be said for engagements that relate to performance management. Get used to charging what the service is worth, rather than the hours on your timesheet.
Process … due professional care requires that you "obtain sufficient relevant data to afford a reasonable basis for conclusions or recommendations in relation to any professional services performed." (See the AICPA's
Finally, find tools that allow you to use a repeatable process for both performing advisory engagements and reporting on those engagements. Change your mindset … you could develop your own tools, but it will be very time-consuming and likely need to be tweaked after every engagement until you get it "right."
Accounting Today recently had a great article on the topic.
