Managing everything accounting for a business can seem like a chore but is necessary. Keeping accurate records, filing tax returns, and handling other accounting tasks can be overwhelming. This is one reason businesses consider engaging the service of experts providing client accounting as a service.
On the service provider side are accountants, with some only offering basic services such as bookkeeping and not getting the most out of their expertise by expanding their service offerings.
With client accounting software and technology, accountants, accounting firms, consultants, and other financial experts can help businesses enhance their financials and accounting tasks.
That said, this article discusses everything about client accounting services. You’ll learn about the benefits of client accounting, the services included, and how providers can use software solutions to improve their offerings.
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A simple way to view client accounting services (CAS) is as outsourced accounting. If you or your business offers client accounting as a service, you handle the accounting cycle and other financial activities of your clients.
The purpose of client accounting services is to streamline financial processes and improve financial accuracy.
A business outsourcing its financial activities to an external service provider removes from its processes activities that do not directly contribute to the primary functions of the business, which are typically product or service development and growth.
While activities like bookkeeping, payroll, tax preparation, and financial reporting are necessary tasks for the financial health of a business, they are not core business activities for most companies. Getting a competent, external accounting firm to handle these tasks helps businesses streamline processes.
Also, accountants or accounting firms contracted to handle CAS are required to provide error-free and accurate financial records. They also bring into client operations their expertise so the client gets valuable financial insights that can assist in decision-making.
Traditional accounting is done in-house, utilizes conventional management systems, and is time-consuming. On the other hand, accounting for clients as a service is outsourced, benefits from specialized knowledge, is more cost-effective, and prioritizes efficiency. CAS also goes beyond the scope of traditional accounting by encompassing other services not offered in conventional accounting and having a bigger stake in clients' financial decision-making.
Businesses getting outsourced client accounting services has many advantages. Let’s consider some benefits to CAS from an external firm.
Managing an on-premise accounting team can be costly. Recruiting, retaining, and training full accounting staff means the payment of salaries, health insurance, and other benefits. These expenses are further compounded by the cost of office space and software licenses needed for the team. Upgrading the accounting unit as operations grow can also eat deep into business finances.
Outsourcing your accounting department functions will lead to significant cost savings. While you’ll have to pay an outsourced team or firm, you save on costs you would otherwise incur on an in-house accounting department and setups.
Outsourcing your accounting services allows you to tap into the expertise of professionals. Expertise comes in different ways, including specialized knowledge, industry experience, networking, advanced training, and software proficiency.
Speaking of specialized knowledge, accounting specialists have in-depth knowledge of tax regulations, strategies, techniques, and other accounting principles.
When all these are put to work, the result is efficient bookkeeping, accurate financial records, and compliance with regulatory requirements. Competent hands handling the accounting extension of your business also means your internal resources can focus on core business functions that generate revenue and drive business growth.
If you also look at networking, outsourced accountants typically, through years of service and experience in a particular industry, have built relationships and networks that can be beneficial in situations where your business needs referrals or financing options.
As your business grows, the work of your accounting department will increase. Outsourced accounting means you don’t have to worry about scaling resources up or down.
The remote department handles everything financial, including regular bookkeeping, tax filing, payroll, and reporting.
Whether your business is going through expansion or scaling down, third-party accounting firms have the human and technological resources to meet demands accordingly.
If you have to downgrade your plan with a CAS provider or reduce the frequency of your service requests, their flexible solutions help them adapt to your specific needs. This flexibility can be hard to achieve when running an in-house accounting department.
Using external professional accounting services helps gain a deeper understanding of the strengths, risks, and trends of your finances. The outsourced accounting provider will typically provide you with KPIs, comparative analysis, forecasting, and more through data.
When it comes to using data to analyze trends and forecast future performances, their software proficiency plays a key role. Since outsourced accountants often manage more than one client at the same time, they are always on the lookout for software and tools that make accounting and reporting efficient and better. The client benefits from such efforts.
Unlike traditional accounting, client accounting is comprehensive. From basic bookkeeping to advanced advisory solutions, here are some of the key services of CAS.
Bookkeeping is the regular record of business financial transactions. It helps businesses keep track of all information relating to their finances. It's the foundation on which other financial services are built. Being able to bookkeep helps enterprises make key operating, financing, and investing decisions.
Bookkeeping offerings under CAS involve many of the key financial services you already know, such as:
Auditing requires an outsourced accounting firm to regularly review client accounts for mistakes and errors before they turn into serious issues. The audit process examines deeply every financial transaction made by the client to ensure that all necessary accounts are made available and maintained accurately.
Audits are usually a multi-layered process. A CAS provider may review other issues such as operational procedures, human resources policies, and quality or safety policies.
Tax preparation involves compiling all necessary financial data, filing tax returns, and ensuring accurate records to avoid penalties. The outsourced accounting firm may also advise on efficient tax strategies.
One of the reasons CAS is many levels above traditional accounting is the strategic guidance it provides for clients. Accounting advisory services are aimed at helping clients identify goals and create strategies to achieve set goals. It also helps with process optimization, forecasting, tax planning, market analysis, and navigating difficult financial challenges.
These and many other services are typically provided by specialized accounting agencies staffed with experts in various business fields.
Making sure a business’ finances are in order is critical to meeting set financial and overall business goals. A lot of CAS providers include CFO service as part of their offerings.
A remote chief financial officer or controller is a financial executive who makes sure that a company is making sound financial decisions and has its finances in order. The controller uses technology to remotely communicate with clients and oversee operations such as financial analysis, budgeting, reporting, and forecasting.
There are reasons businesses engage the services of an external financial officer. These include expertise, flexibility, and cost savings. If a company is having challenges addressing a specific financial issue, a virtual financial controller can bring in their expertise to correct the issue.
Based on client needs, a virtual CFO can work part-time or full-time. And because they are less expensive than hiring an in-house financial controller, outsourced financial controller services can save businesses on costs.
Wealth management services are another offering not included in traditional accounting. These services are for affluent clients, be they individuals or businesses. All the offerings in wealth management solutions are geared towards sustaining and growing client wealth.
Professional advice on investment portfolios, tax planning, asset allocation, investment banking, philanthropic giving, retirement planning, and debt management are some of the services in wealth management solutions. Estate planning is also a big part of wealth management, involving the management, protection, and transfer of property and wealth.
Client accounting services support business growth primarily in two ways. It provides real-time financial data and lets enterprises get access to expert insights.
CAS providers can't risk their relationships with inaccurate data or inefficient strategies. Therefore, they ensure to provide clients with up-to-date and accurate information that clients can depend on for timely and informed decisions.
This is one of the reasons outsourced consultants invest in training, software solutions, and technological infrastructure to facilitate accurate, real-time data. Having access to timely updates helps identify trends, risks, and opportunities, all of which are essential to the success of the client enterprise.
Another reason businesses turn to outsourced accounting providers is insights. The experts can analyze financial data in a unique way. Through their expertise, they can identify strengths, weaknesses, trends, and improvement areas. Based on identified areas, they can strategically advise clients on efficient budgeting, investing, and management strategies.
CAS has all the elements needed to support your business and fuel its growth. It may be time to outsource your accounting department functions to a dedicated CAS team if:
Overall, client accounting solutions can transform the way a business gathers, accesses, and uses financial data. CAS can help businesses make strategic and proactive decisions. Instead of using an in-house accounting team, leverage the infrastructure and expertise of the pros.
Outsourced consulting firms need tools and software to manage client accounting. Depending on the size of the firm and the services provided to clients, some tools may be better suited than others. Some can also serve as complementary tools to the main accounting tool used by a consulting firm.
Regardless, here are four software solutions that can be used in client accounting efforts.
Clinked Client Portal Software
Clinked is a cloud-based client portal solution designed for accounting professionals to manage tasks and deliver CAS to clients. While not the only tool in an accounting firm’s toolbox, Clinked helps eliminate inconsistencies in client accounting management with its robust feature set.
One standout feature is its white-label capability, allowing firms to customize the portal with their own branding, which enhances professionalism and provides a seamless client experience. In addition, Clinked offers secure file sharing, ensuring that all sensitive client information is stored and shared safely within the platform, meeting compliance standards.
Clinked also integrates with QuickBooks, allowing seamless data syncing between platforms. Its automation streamlines client management by simplifying data transfer, client onboarding, and centralizing interactions in one secure location, reducing the need to juggle multiple tools.
The project management module with a built-in client portal creates a collaborative workspace for clients and businesses to share project details and manage tasks efficiently. The @mention feature sends instant alerts for attention on specific tasks, and the platform includes controlled, permission-based messaging channels for secure and private communication.
Overall, Clinked provides a customizable, all-in-one client portal solution tailored to the needs of accountants and CAS providers, offering a combination of white-label branding, secure file sharing, and centralized client information to enhance service delivery.
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QuickBooks is cloud-based accounting software designed to manage all accounting needs, with Intuit having discontinued its desktop versions. It allows users to create invoices, send payment reminders, and organize expenses, simplifying tax preparation with features like GST & VAT for automatic sales tax calculation.
Data migration to QuickBooks is easy, supporting imports from Excel, Wave, Sage, and more. Its reporting and smart insights provide a 360° view of sales, filterable by product, customer, location, or project. Users can also create custom financial reports such as balance sheets and profit & loss statements, providing better insights to clients.
QuickBooks' invoice tracking helps users monitor accounts receivable and payable, ensuring consistent cash flow. While often associated with small businesses, QuickBooks Online offers valuable tools for CAS providers.
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Financial Cents is an accounting practice management software offering features like Projects, Tasks, Client Requests, Templates, and Reports. It allows team members to manage projects by assigning tasks and reassigning them to prevent burnout. Client Requests helps gather necessary files and documents from clients.
Workflow templates enable teams to document processes, with prebuilt options for tasks like bookkeeping and tax returns. The software’s reporting feature tracks time spent on tasks, helping firms assess the cost of projects in terms of time and resources. Financial Cents is a valuable tool for CAS providers and businesses managing their accounting in-house.
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Anchor is an accounting management software designed to automate client payments. It allows users to send proposals, invoices, and accept payments. Team management features enable setting roles and permissions for employees, controlling access to sensitive information.
Anchor includes an audit trail for tracking changes, ensuring transparency and compliance. It integrates with QuickBooks Online for real-time data sync and offers Zapier functionality for extended integrations. Overall, Anchor is an all-in-one platform for managing both basic accounting tasks and workflow processes.
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While upscaling from basic bookkeeping solutions to offering client accounting services offers significant revenue opportunities, successful implementation comes with certain challenges. Here, we consider three challenges faced when implementing CAS offerings.
Overpricing could mean fewer businesses, while underpricing your services can make scale difficult. Getting pricing right can seem like a straightforward, no-brainer decision, but putting the right pricing model and structure in place can be challenging.
Billing by the hour is one option to consider. But because technology is helping accounting firms to complete jobs quicker, using an hourly rate means getting paid less for your hard work. So instead of going full-scale hourly billing, you can use the pricing model for time-consuming tasks, not high-impact services.
Value-based pricing is another more effective pricing model. The model lets you set rates based on the perceived value of your services to clients. It's not a cookie-cutter payment model, but a per-client and per-service pricing model.
Once you've established your pricing model or while finding a good one, plan for ways to market your services to those needing your client accounting services. This can be challenging and confusing, as there are lots of ways to get prospects to notice your business.
Referrals, website marketing, networking through events, investing in SEO, and going the route of social media platforms and influencers are some marketing options you have.
Researching your competition can provide insights into what marketing channels to pursue. If you have the marketing budget, you may want to do some testing to see what works best.
No single business has the same accounting needs. So meeting the varied needs of different clients that come to your practice can be difficult, particularly when the right systems are missing.
Ensure to clearly communicate to clients what's included and not included in an outsourced accounting service. This is a simple but effective way to manage expectations from the get-go.
Make sure your firm is also staffing the right professionals to complete different parts of the CAS your business offers. After all, clients coming to your practice pay for expertise, not trial-error attempts.
Also, use the right software solutions and business tools that facilitate quality jobs and on-time project deliveries.
These are some of the many ways you can ensure customers are satisfied with the service they receive.
The busy nature of accounting firms can make it challenging for them to track projects and tasks for every client without anything falling through the cracks.
This is where client portal software is useful. As the name suggests, client portals are a secure environment where everything related to a client project is managed and handled.
Here’s how accounting firms offering CAS can benefit from portal solutions like Clinked.
Client portal solutions typically come with a messaging channel where you can communicate and collaborate with clients on their financial documents. Clinked comes with a dedicated messaging feature that's available on both the web-based platform and the mobile app. You can use this direct channel to discuss individual client accounting needs.
Collaboration is important to ensure every T is crossed and I is dotted. Features like secure document sharing in Clinked let you view and update records securely with your clients.
Project management often refers to the management of everything concerning individual clients. Clinked comes with, for instance, Mention and instant notification features that can be used to call the attention of a team member to attend to a particular client task.
A robust notification means everyone on the team can be alerted instantly as updates drop. This plays a role in the quick handling of tasks and moving projects to completion. In addition, a Clinked time tracking function lets you know how much time and resources you allocate to client projects.
Transparency is key for compliance and client satisfaction. A client portal's audit trail tracks all changes, ensuring every action is recorded. File versioning helps monitor document edits and ensures you're always working with the latest version.
Using portal solutions improves communication, project management, and change tracking. Depending on your CAS scope, a few tools, including a client portal, may be all you need to complete accounting projects efficiently.
Feel free to explore how a portal solution can enhance your CAS offerings.
A client portal empowers clients to access financial documents, reports, and other important information on their own, reducing the need for back-and-forth communication and offering convenience. This feature streamlines routine document requests and enhances client satisfaction.
Client portals provide secure, cloud-based storage for sensitive data, ensuring compliance with industry standards. With access control features, you can limit who can view or edit specific documents, maintaining confidentiality and security.
Many portal solutions allow for custom branding, giving your accounting firm the ability to provide a professional and personalized experience for clients. This consistency enhances trust and brand perception.
With mobile apps, both clients and firms can access information, manage tasks, and communicate from anywhere, adding flexibility and convenience, especially for on-the-go professionals.
Client accounting services let businesses irrespective of the size get access to real-time financial data and access to expert guidance and insights. Businesses can focus their attention on core business activities instead of on in-house accounting operations.
If you run an accounting firm and are yet to incorporate into your offerings in CAS but just traditional accounting, you are leaving money on the table. This resource has exposed you to different opportunities to be explored.
As long as you use the right software solutions, get the right people on your team, manage expectations with clients, and deliver quality services, you earn more revenue and bring additional value to the marketplace.
Feel free to explore further the software solutions discussed in this article to enhance your CAS processes. Using the right solution can help grow your business and help do the same for your clients.
If you'd like to see how a client portal solution like Clinked can help streamline your client accounting solutions, book a product demo consultation or start a free trial. An expert from Clinked will be glad to answer any questions you may have.