The results of our latest CAS benchmark survey are eye-opening, even for those who have closely tracked the rise of client advisory services (CAS) in recent years. For starters, firms are reporting a median growth rate of 17%, outpacing growth across the profession. Median reported CAS revenues rose 61% over 2022. And firms are seeing significant increases in net client fees per professional (NCFPP) from CAS.
Those are the kinds of results that should grab the attention of any firm looking to drive more growth in 2025. Just as important, they serve as a useful measuring stick for firms that are already well on their way in the CAS journey. Is your firm seeing the same level of growth from its CAS practice. And if not, why not? Which CAS offerings are driving the most growth? Which strategies are working best?
Fortunately, our bi-annual survey digs a lot deeper into the detailed workings of CAS practices of all sizes and maturity levels. For any firm leaders looking to maximize the potential of their CAS practices, the survey is one of the best places to start.
Here are the top takeaways from our latest survey report:
- CAS growth continues to be significant and outpaces the profession’s overall growth. Respondents reported an increase in CAS revenue growth that was stronger than their firm’s overall reported median growth.
- Firms can increase revenue by expanding their higher-level service offerings. Firms that generate significant revenue from CFO or higher-level business insights advisory services earned more than 30% higher monthly recurring revenue.
- Defined strategy and planning are key to a successful and profitable CAS practice. Practices with a formal CAS business plan report nearly $10,000 more in median average annual client revenue. They’re also more strategic about staffing and have a clear, firmwide understanding of services and ideal client profiles.
- Defined client niches are key to promoting standardization and efficiency and, ultimately, increasing profitability. Practices where more than half their revenue comes from defined industry niches report 38% higher median CAS revenue and 51% higher net revenue per client than all respondents.
- Adaptability and agility are key to staffing in CAS. Nearly four-fifths (78%) of practices have dedicated staff working only in CAS. Additionally, ongoing training and flexible staffing solutions are important to achieve operational excellence and maximize growth.
- Better strategy and investment around technology means better productivity, efficiency and staff satisfaction. About half of CAS practices (51%) are continually investing in technology, and those practices report higher total CAS revenue and average client revenue. They also report serving 50% more clients (100 vs. 67) than all respondents.
- Pricing in the CAS space has shifted away from pure time and materials billing. CAS practices continue to lead the way in rethinking billing with only 10% of respondents still employing hourly billing as the primary pricing method.
Firms are continuing to double down on CAS as a key source of growth—and as the survey insights above show, there’s even more potential for firms that take an intentional, strategic approach to building and scaling their CAS practices. The goal is to shift from financial CAS (transactional and controller services) to advisory-level business insights CAS based on financial and non-financial insights, creating more value for clients and positioning their firms for even more success in the future.
Put your peers’ CAS insights and experiences to work for your firm
Learn more about each of these insights and so much more in the complete 2024 CPA.com and AICPA PCPS CAS benchmark survey report. Download it, share it with other leaders in your firm, use it to inform sales, strategy, and operational meetings with your CAS team, and more. Because it’s worth it—CAS has proven to be one of the most exciting developments in the profession over the past few years, and it shows no signs of losing momentum today. All of which can add up to big opportunities for your firm and its clients.
The CAS benchmark survey is just one of many useful, practical assets we’ve created to help firms make the most of the CAS opportunity. For starters, CPA.com will hold a free webinar Thursday, Jan. 30 at 1pm ET to highlight key insights from the survey and offer practical strategies for firms to strengthen and develop their CAS capabilities.
To support firms on their CAS journey, CPA.com offers a portfolio of learning resources including whitepapers, firm self-assessments, self-guided toolkits, virtual and in-person workshops, guided coaching cohorts, consulting engagements and much more. Through its award-winning CAS 2.0® Coaching Program and the Digital CPA conference, CPA.com has built and is cultivating a thriving CAS community where firms have access to like-minded CAS practitioners and leaders.
To learn more, please visit cpa.com/client-advisory-services.
About the author:
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.
