Creating a standout client advisory services (CAS) practice is about much more than just putting a price tag on your services. It's about weaving a comprehensive strategy that’s as dynamic and innovative as the industries your firm serves. You need a crystal-clear vision and mission, a well-defined client profile, and a top-notch team backed by cutting-edge technology.
I recently discussed this topic with CAS leaders, Roman Villard of Full Send Finance, and Kane Polakoff of CohnReznick, to dive into six essential steps you need to take before thinking about pricing to craft a robust CAS strategy and pave the way for success in pricing.
Setting the stage for a strategic approach
Many firms believe that pricing is the cornerstone of establishing a CAS practice. In reality, the true foundation lies in a strategic approach that goes beyond numbers. Start by crafting a clear vision for your CAS practice, pinpointing your ideal clients, and assembling the right mix of talent and technology. This holistic strategy not only sidesteps common pitfalls but also ensures your services are perfectly priced and aligned with your firm’s strengths and ambitions. Simply put, a lot of things need to happen in your journey before you even start discussing the pricing aspect.
Understand your vision and mission
A clear vision and mission set the direction for your firm. The vision guides the firm’s operations and ensures that advisory services are integrated into every aspect of the firm’s CAS work. A well-defined mission statement can help communicate the CAS practice’s goals to both clients and team members, fostering a cohesive approach to service delivery.
Roman stated it well when he said, "I truly believe that advisory is not a service that you add to your firm; it's a mindset that you must embody within your firm and drive through your clients."
Create your plan
A detailed plan is crucial for defining a CAS strategy. This includes obtaining executive buy-in to the CAS approach, establishing clear goals, and determining the services offered. Alignment at all levels of the firm is essential to ensure everyone is working towards the same objectives and understands the value of the services provided.
According to Kane, "The vision of an organization and the mission has to be aligned at all levels. Dedicated focus on building a plan helps gain that alignment within the firm."
Determine your client focus
Identifying and narrowing your ideal client profile (ICP) is a game-changer for building a successful CAS practice. Instead of casting a wide net, focus on specific niches by considering factors like industry verticals, client size, and geographic location. This targeted approach allows your firm to streamline processes, develop templates, and leverage industry-specific metrics to deliver exceptional service. Specializing in particular sectors not only enhances efficiency but also empowers you to create bespoke tools and processes that cater to your clients' unique needs.
Remember, the clients that fit your current practice might look very different from those that will propel your future success. Embrace this strategic shift to transform your CAS practice and stay ahead of the curve.
Establish and grow your team
Building a thriving CAS practice hinges on assembling the right team. This includes recruiting individuals with the necessary skills and providing ongoing training to ensure they stay up-to-date with industry trends and technology. Partnering with your firm’s human resources team to define learning paths and ensure staff success brings the necessary human capital planning expertise into the fold.
A strong culture that empowers employees and fosters a positive work environment can make a firm an attractive place to work and help retain talent. For Roman, focus on culture is particularly important: "At Full Send Finance, we focus on elevating the human, the personal interest, [and] their professional aspirations as much as possible."
Choose the right tech stack
Technology and automation capability are cornerstones of delivering high-quality CAS services. Moving beyond bookkeeping and transactional services, CAS practitioners and firms are expected to bring insights and recommendations, including best-in-class financial operations technology forward. Choosing the right tools for the job is essential.
General ledger systems and automation tools tailored to industry verticals will help you meet the specific needs of your clients. Building integrated financial operations enables seamless data integration and the ability to deliver actionable insights. And it requires a thoughtful and strategic approach. As Kane noted in our discussion, “We are always open to looking at other technology out there, but we want to be cautious and not keep changing everything."
The path to pricing
While pricing is an essential aspect of any CAS practice, it should not be the starting point. A strong value proposition is necessary to justify pricing. By focusing on the firm’s vision, building a solid plan, identifying the right clients, and leveraging the right technology and human capital, firms can ensure they provide high-quality services that justify their pricing. For Roman and Full Send Finance, their growth is directly tied to a strong value proposition, "I can confidently say that my firm wouldn't be where it is today without a strong value proposition."
And Kane summarized it well: "Pricing is really an outcome. You can't rush to get to that point because there are so many things you need to do before then."
CPA.com is dedicated to helping firms build successful, and profitable, CAS practices. To gain more CAS-related insights including videos, articles, surveys and more, visit cpa.com/cas.
Kimberly K. Blascoe, CPA, leads CPA.com’s CAS 2.0 practice transformation programs, focusing on helping firms establish and grow optimized CAS practices through consulting, practice development and training offerings. Prior to joining CPA.com, Kim spent more than 30 years in public accounting, which included leading the CAS practice for a Top 20 firm.
