july2021 - 10

FROM THE TRENCHES
CLIENT EXPERIENCE FOR TODAY
Client Advisory Services
Few topics are as near and dear to me as Client Advisory Services. Those of you who have
followed both my teaching career around the world for decades, and this column for almost
20 years, know that I've tried to bring you the latest in software and hardware technology.
In many cases, my software and hardware insights occurred because I've been fortunate
to advise companies creating these products, and still do so daily. While the actual, sole
inventor of Software as a Service (SaaS) based collaborative Client Accounting Services (CAS)
may never be known, it has been an honor and a privilege to sit in many of the meetings
where these ideas were created.
Authors, tech developers, and
consultants will attempt to convince
you that they have the best CAS and
Advisory answers. While quite a few
have developed methodologies to
deliver services with their software
tools, only a few organizations have
developed an independent program.
As practitioners, sometimes we just
need to solve day-to-day client problems
and want a cookbook approach
to accomplish this. As advisors, we
must rise above the day-to-day and
help our clients think strategically
about achieving their goals, not ours.
The best analogy I can make for
CAS and Advisory is training and
education. I have written about this
in the past in other columns. Training
is more vocational. Education is more
holistic. We are educated to become
more rounded. We are trained to do
something specific. There is nothing
wrong with a vocational school to learn
a skill. We believe training is beneficial
to learn a particular application well as
evidenced by my K2 business offering
technology CPE courses. Likewise, you
are educated initially to become part of
a profession and to achieve more noble
goals and take CPE to hone your skills.
We can use our talents to do good
for our clients and help them achieve
their goals. Teachers choose to use
their lives to help others and find
great rewards while doing so, although
monetary rewards are frequently not
among them. But the difference teachers
make in people's lives is notable.
Each of you has benefited from more
than one teacher. Note that most teachers
and mentors have also contributed
to making you a better professional.
WHY THE FUSS ABOUT
ADVISORY AND CAS?
First, let's make it clear that Advisory
Services have been available in the
RANDY JOHNSTON
EVP & Partner
K2 Enterprises &
CEO of Network Management Group, Inc.
randy.johnston@cpapracticeadvisor.com
@RPJohnston
profession since the 1930s. Advisory
has only become popular in the U.S.
market over the last five years or so. I'm
aware of 34 Advisory offerings by my
latest count, but I'm sure there are more
in the market. Advisory requires planning
and a " whole-of-client " approach.
Advisory is proactive rather than reactive,
benefits from true independence,
and is more than a methodology to
sell services to niches. Advisory may
evolve to increasing specialization, but
be cautious that this is not simply niche
consulting.
Few application software products
are genuinely advisory tools. I'm
sure there are more, but I only know
three and only recommend one. Most
software tools are too operational and
transactional to maintain the 30,000
views that Advisory Services provide. A
product providing cash flow (LivePlan),
HR (Gusto), or tax planning (Corvee)
may enable a single advisory service.
However, a single advisory service
doesn't qualify for a " whole-of-client "
approach. A single service is more like
consulting than advising.
Accountants that provide Client
Accounting Services see opportunities
to assist clients first. For example, if
there is a cash flow issue, you can see
it from the CAS system. If payroll is
part of your CAS offering, you can
quickly see when labor costs are too
high, or there is too much overtime.
CAS offerings should be a blend of five
to nine offerings to support a client's
transactional needs. Examples of
service offerings include Accounts
Payable/bill payment, Accounts Receiv10
JULY 2021 ■ www.CPAPracticeAdvisor.com

http://www.CPAPracticeAdvisor.com

july2021

Table of Contents for the Digital Edition of july2021