Client Advisory Services (CAS)
Participating in client advisory services requires that the CPA is prepared enough to ask difficult yet questions that businesses can and will benefit from by considering them. One of the many issues that accounting firms encounter in the preparation of the services that they provide is the outsourcing component. In many instances, it is difficult to be attentive and successful in all portions of the business. It is important to keep a mindset of delegation and hierarchy in which some teams which are a part of the CPA firm, participate with segregated duties while having the lead of the CPA.
Large CPA firms have the potential of providing services that small CPA firms do not. For example, providing auditing compliance services poses a liability to the firm and thus many firms steer away from this portion of the industry. Accounting services, which include taxes, general accounting and financial reporting, as well as modeling and projections and budgeting can be performed by large corporation in a streamlined manner so that clients get the just in time results that they want when they need them.
Small businesses and organizations, lack structure, which is needed for the success of the business. Without processes and systems, firms will not thrive. And CPA firms are not excluded, every step that is taken in an organization should be recorded and every team member, accountant, associate and partner must be aware of what those systems are and how they function. Everyone must be on board in order to succeed, from the sales front face of the organization to the back-end software developer and customer service component.
For individuals who operate in a solo practice, organization is key, and the questions that were posed for the success of the business must be modified and reconsidered within reasonable time in order to fulfill the obligations to the clients that the firm serves. Outsourcing is not the answer, it is a temporary solution that could help an organization grow, but it will not be a sustainable process when the time comes to explain the reports, projections and models to the clients.
The CPA must be well versed, educated and prepared to answer questions in a timely manner, particularly when regulations and policy changes rapidly in an environment that includes politics, social change and scholar and academic input.
It is important to look at the big picture, for a business to thrive. While maintaining a conservative and frugal expense base, it is also important to understand the component of risk and the component of uncertainty. Gambling with funding is not appropriate and here is where budgeting and cash flow projections come in. CPA firms are very technical operations and these firms that demand a position and a mindset that organizes data, information and provides results in the manner of reports for business owners who provide products to their own client base, something that CPA firms do not.
Consider CPA firms as a tool for businesses to hang on to and ask difficult questions and see the results of their operations in paper with the profit in mind. In the end, the proof comes to light at the end of the billing cycle, during tax season and during periods of requesting credit. It is important to put your heart in the business, but it is also important to keep a cool head to avoid overspending where it is not necessary.