- Double-digit growth trend of CAS continues to outpace growth in the profession
- Significant increase in net client fees per professional (NCFPP)
- Median reported CAS revenue rose 61% over 2022
NEW YORK (Dec. 9, 2024) – Client advisory services (CAS) is poised to continue its impressive trajectory as the fastest growing service area in public accounting, according to the newly released 2024 CPA.com & AICPA PCPS Client Advisory Services Benchmark Survey report. The survey polled more than 200 U.S. firms with CAS offerings and collected data from the 2023 calendar year.
CAS practices that participated in the survey reported a median growth rate of 17% and are highly optimistic about the continued opportunity of the practice area. Respondents projected 15% continued growth in the current year and an impressive 99% projected median growth for their firms over the next three years. Additionally, median CAS net client fees per professional (NCFPP) rose to $156,250 for all respondents, an increase of 29% over the 2022 survey.
The growth in key metrics is likely attributed to firms doing more CAS engagements, rather than tax cleanup or annual project work, and taking steps to standardize processes and “right price” work with fixed-fee strategies that are billed on a recurring basis. The survey also indicated firm practices are shifting to maximize value for clients and staff and support continued growth.
Key insights include:
- 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 versus 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 client advisory services (CAS) as a key growth area, but there’s still so much more potential for those that take an intentional and strategic approach to building and scaling their CAS practices," said Kimberly Blascoe, CPA, Senior Director of CAS Professional Services, CPA.com. “By continuing to shift from financial CAS (transactional to controller services) to higher-level business insights CAS (based on financial and non-financial insights), firms will create more value for clients and be well positioned for ongoing success.”
CPA.com will hold a free webinar Thursday, Jan. 30 at 1 p.m. 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.
Methodology
The CAS Benchmark Survey was conducted online from May to July 2024 and includes data from calendar year 2023 for the 206 CAS practices who self-selected to participate in the survey. Besides general results, the survey analyzes the performance of top CAS practices, defined as those with the highest net client fees per professional (NCFPP).
About CPA.com
CPA.com brings innovative solutions to the accounting profession, either in partnership with leading providers or directly through its own development. The company has established itself as a thought leader on emerging technologies and as the trusted business advisor to practitioners in the United States, with a growing global focus.
Our company’s core mission is to drive the transformation of practice areas, advance the technology ecosystem for the profession, and lead technology research and innovation efforts for practitioners.
A subsidiary of the American Institute of CPAs, the company is also part of the Association of International Certified Professional Accountants, the world’s most influential organization representing the profession. For more information, visit CPA.com.
About the Association of International Certified Professional Accountants, and AICPA & CIMA
The Association of International Certified Professional Accountants (the Association), representing AICPA & CIMA, advances the global accounting and finance profession through its work on behalf of 689,000 AICPA and CIMA members, students and engaged professionals in 196 countries and territories. Together, we are the worldwide leader on public and management accounting issues through advocacy, support for the CPA license and specialized credentials, professional education and thought leadership. We build trust by empowering our members and engaged professionals with the knowledge and opportunities to be leaders in broadening prosperity for a more inclusive, sustainable and resilient future.
The American Institute of CPAs (AICPA), the world’s largest member association representing the CPA profession, sets ethical standards for its members and U.S. auditing standards for private companies, not-for-profit organizations, and federal, state and local governments. It also develops and grades the Uniform CPA Examination and builds the pipeline of future talent for the public accounting profession.
The Chartered Institute of Management Accountants (CIMA) is the world’s leading and largest professional body of management accountants. CIMA works closely with employers and sponsors leading-edge research, constantly updating its professional qualification and professional experience requirements to ensure it remains the employer’s choice when recruiting financially trained business leaders.
