A Comprehensive Guide to Client Accounting Services

Easy Upsell

If you've managed to convert a prospect into a client, you've done the hard work. From there, it's fairly easy to upsell your client on the idea of CAS. Why is it so easy? You've already earned their trust to handle the basics. And once they trust you with a little, it's not a big leap to trust you with more.

You might also think that clients are resistant to fee increases. In reality, their main concern is likely whether they will receive a good return on their investment. Thus, to successfully upsell client accounting services, you must clearly distinguish them from traditional ones. Demonstrate the added value of CAS: a team of professional accountants serving as your client's remote accounting department. That's one immediate and decisive competitive edge that enhances client trust, streamlines their financial operations, and drives long-term business growth.

Greater Client Retention

A client who's only coming to you for tax preparation may or may not stick around. It's anyone's call. But, if your client has hired your accounting firm to handle all of their financial needs, they'll be less likely to leave. Also, offering client accounting services improves your client retention rate. If you offer the accounting services that your client needs in one spot, they won't have to venture elsewhere.

Elevated Role as a Trusted Advisor

When your client makes use of your firm's client accounting services, they will see you as a trusted advisor for the long haul. This is a major step (or maybe even a leap) beyond one-off accounting services. By offering CAS, you elevate your role from a tax preparer to an integral part of your client's financial operations.

Being seen as a strategic partner enhances your professional reputation. Your expertise and insights are recognized and valued, leading to more referrals and a more prominent presence in the market. With deeper relationships and an enhanced reputation from your expansion to client accounting services, opportunities for more challenging and rewarding work​ follow.

Enhanced Scalability for Your Practice

The CAS model allows you to provide precisely what your clients need at each specific stage of their business growth. This modular approach lets you start with basic services and expand to more complex offerings as your client's requirements evolve. For example, a startup might initially need just bookkeeping, but as it scales, you can add services like detailed financial modeling and business performance reviews. By offering tailored client accounting services, you can cater to the unique needs of each client, ensuring that your services align with their specific goals and objectives.

The recurring revenue model of CAS also stabilizes cash flow. As a result, accountants can better manage their resources and plan for long-term investments, such as hiring additional staff or upgrading technology. These investments can, in turn, further drive growth momentum.

5 Best Practices for Operating Under a Client Accounting Services Model

The move to or addition of CAS shouldn't be done without careful consideration. This expansion requires a shift in the way you do things. Realize the potential of client accounting services to grow your practice with these key strategies and best practices:

1. Start with the Right Software

Before offering CAS, you need a solid practice management and accounting billing software to operate from.  That's because client accounting services require robust technology to streamline operations and improve efficiency. By adopting project management for accounting firms, you can automate tasks, track progress, and make data-driven decisions to drive business growth.

When choosing the right practice management solution for your firm, look for one that can help you streamline your daily processes and deliver client accounting services optimally. For instance, Mango Practice Management's project management software offers automatic notifications to ensure that staff are promptly informed about high-priority tasks, both overdue and upcoming. This can help enhance overall task management.

The platform's time-tracking options also integrate smoothly with project management workflows, allowing firms to monitor resource allocation effectively and ensure that time is spent judiciously.

Additionally, your accounting practice management software should enable you to securely share documents with your clients and request their eSignatures by email. Mango Practice Management is not only a client portal but also a frictionless medium for contacting clients and managing their financial needs.

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2. Rethink Your Billing Model

Hourly billing is still very useful for core accounting services. However, when you offer CAS, it's better to use a different pricing model, such as subscription-based, fixed, or even value pricing.

In a subscription model, your client will pay a recurring fee on a monthly, quarterly, or annual basis to access your client accounting services. With fixed pricing, the rates are set for each service ahead of time and remain the same, regardless of any outside factor, such as competitor pricing. With value pricing, the rates can fluctuate depending on a variety of factors, such as market demand or the client's perceived value of CAS.

Simply put, CAS clients don't want to feel like they're watching the clock when paying for additional accounting services. It's more difficult to upsell client accounting services that have no set amount. But if you offer a fixed fee, for example, your client will be more open to the idea because they can anticipate and manage the costs.

When upselling, be prepared to educate your clients on what CAS is and how they (in particular) can benefit from using it. You'll need to show your client that there's a clear difference between CAS and your traditional accounting services.

3. Create a Dedicated CAS Team

Another consideration is staffing. Constantly shifting from CAS to other services can be mentally draining and lead to inferior results. To be successful, you'll need a dedicated CAS staff who can devote themselves to managing your retained clients' financial needs.

Equip your CAS team to swiftly adapt to the complexities of client accounting services. For instance, invest in providing them with specialized training in areas like project management for accountants and advanced financial reporting. Ensure accessibility by offering these training sessions in flexible formats, including in-person, online, and self-paced modules.

4. Leverage Real-Time Reporting

Implementing real-time reporting in your accounting practice can significantly enhance your business operations. Real-time dashboards and advanced visual tools provide your team with immediate and comprehensive access to financial data, allowing for continuous monitoring of cash flows and performance metrics. This capability enables your practice to make swift, data-driven decisions, improving overall efficiency and responsiveness.

5. Shore up on Security

Robust security measures and secure client portals are essential to protect sensitive financial data and maintain client trust. Here are several safeguards you can put in place when offering CAS:

• Implement encryption to safeguard data both in transit and at rest.
• Secure access controls, such as multi-factor authentication and role-based permissions.
• Conduct regular security and compliance audits to address system vulnerabilities and stay aligned with industry standards like the General Data Protection Regulation (GDPR) and Service Organization Control 2 (SOC 2).
• Utilize compliant technologies like secure cloud-based platforms.
• Clearly explain to your clients how you use their data and make sure to get their prior consent.

By integrating these protocols, you can protect your clients and build a reputation for reliability​.

Outpace the Competition: Deliver Seamless CAS with Mango Practice Management

Expanding to client accounting services is one of the best ways to increase the value you offer your clients. You can also help your clients scale their business as you scale yours. Before diving into client accounting services, weigh the above benefits and considerations to determine if it's the right move for your accounting firm at this stage of your practice.

Make decision time effortless by partnering with Mango Practice Management. We're an all-in-one project management software developed by accountants, for accountants. At Mango, we understand your exact concerns, from staying compliant with ever-changing regulations to managing a demanding client roster-it can be a lot. We know because we've been in your shoes. That's why we've created a platform with all the tools to streamline your practice and deliver exceptional client accounting services anywhere, anytime.

Schedule your free demo today and discover how you can stand out from the crowd.