The path to real, sustained growth in accounting firms runs directly through advisory-level relationships. Because when a client asks for your guidance on future decisions, it means they recognize your firm as a trusted advisor that brings the knowledge and insights they need to make smart decisions, month after month. The impact of this advisory dynamic on long-term revenue growth, client relationships and market relevance cannot be overstated.
That's why so many CPA and accounting firms are heavily focused on client advisory services as a way to cultivate deeper, advisory-level relationships with clients. Through CAS, firms are able to offer a range of efficient, technology-enabled services that open the door to these types of relationships in areas ranging from financial planning & analysis to payroll services and more.
One low-hurdle opportunity that firms can embrace to start quickly making the shift into CAS is expense and spend management advisory. If your firm isn't actively considering providing expense and spend management services, it should be.
Spend management: Making the shift
Compared to some other service areas that require firms to have a deep level of expertise before advising clients, spend management offers a relatively easy pathway to higher-value advisory. Firms are already doing financial reporting and managing client expenses — card-based spend management technology allows them to take it a step further to provide actionable insights into the client's spend and begin next-level discussions around budgets and forecasting.
For many, the term "spend management" immediately equates to "corporate credit cards." But it's much more than that. With spend management, all company funds are brought together in one centralized location so finance leaders have full visibility of cash flow and can set, track and control spend before it occurs. This approach varies from traditional expense management, which is usually decentralized by department and records spending only after it occurs.
These technology-enabled spend management capabilities deliver on clients' growing needs to better understand spending patterns to reach a higher level of efficiency in spending, avoid waste and stick to their budgets. This can lead to entirely new — and more valuable — client conversations and growth for your firm.
Clients don't know how to ask for it
According to the findings of CPA.com's recently released
Among SMB respondents, 72% said they were interested in a proactive approach to expense management. And those that are already using card-based spend management technology are seeing the value, with 97% of respondents reporting that it ensures they control spend and stay within budget. In fact, 51% say it has been a game changer for their organizations.
The need for a more proactive approach is only growing, but clients don't always know how to ask their firms for this support. And with only 34% of accounting firms who participated in the survey reporting that they already offer expense management as a service, this area represents major potential for firms interested in starting the move into advisory services. Being intentional in how you speak to your clients about their accounting processes from the start is an easy first step.
Generating new value for your firm
Spend management provides a powerful tool for building stronger long-term relationships with clients and driving efficiencies, which helps create a foundation for steady CAS practice growth. Some of the most important benefits that
Here are a few revealing findings:
- Three quarters (74%) of accounting firms that identify expense management as a revenue stream say that expense management services help them attract and retain clients.
- Of that same group, 63% say that innovations offered by card-based spend management technology make them more efficient and profitable.
- Among SMBs outsourcing and using spend management software, 72% say they're interested in exploring additional services based on how their accounting firm handled expense management.
It's an undeniable win-win for both clients and firms.
Start the conversation
Whether you're considering how to start the shift into CAS or looking to expand your portfolio of services, spend management advisory offers a growth opportunity worth exploring. The demand is already there for firms — all it takes to get started is to have the conversation with your clients.
