What You Need in a CAS Tech Stack

Over the last couple of years, it seems that every time I see the acronym CAS, which stands for client advisory services or client accounting services, I also see “tech” and “stack” mentioned nearby. But why is that?

CAS is the practice of providing services to take care of and address clients’ accounting and financial needs. These services can vary from basic bookkeeping all the way to serving as a client’s interim or outsourced chief financial officer or controller.

Tech (i.e., technology) refers to electronic tools used to accomplish tasks. Stack is a vertical pile of things. By combining tech and stack together, you’re referring to a firm’s set of applications, electronic tools, and software used on a regular basis to run the practice successfully. Ideally, all the technologies used are stacked together and integrated in some way to give staff everything they need to perform their jobs as efficiently and effectively as possible.

Therefore, the reason tech stack is talked about so frequently in the CAS space is because when combined (meaning, the right selection of software and applications), you can streamline tasks, produce higher earnings, and provide your clients a better experience—and therein lies a tech stack’s value. But it’s not just any software or application that’s randomly implemented that’ll allow this—a CAS tech stack needs to be deliberately built based on the practice’s (and clients’) needs and environment.

Whether you’re just starting a CAS practice, experiencing pains or bottlenecks due to manual processes or a small staff, trying to expand with efficiency, or specializing in a niche industry, it’s a good idea to evaluate if you’re using the best tech tools and software for the job and whether there are any areas where you could use technology more effectively.

Here, three leaders of CAS practices share what they consider to be important tech stack selection criteria and the available tools they recommend.

SELECTING THE RIGHT TECH STACK FOR YOUR CAS PRACTICE

Irfan Dossani, CPA, partner in charge of client accounting and advisory services at Whitley Penn, recommends looking at your client base and analyzing what verticals you are (or could be) focusing on, as your tech stack will need to serve those verticals. He notes that some software is specifically designed to serve certain industries and their unique requirements. For example, the manufacturing industry has very different requirements than the nonprofit world. Stepping beyond your practice’s specialization, you must consider whether your software solutions meet the specialized situations of your clients—think location, number of employees, yearly revenue, multicurrency, etc.—since these too can impact which software tools are best for the job.

Dossani also recommends looking at your team. Are some of them really into a certain field or good at a certain area or task? Can you build around that? Can you capitalize on your team’s strengths and specialties to create a unique service offering or focus area? Of course, a third angle is listening to your clients. Are multiple clients asking for the same advice or service or struggling with similar tasks? Based on the answers to these questions, you can find ways to differentiate and create more opportunities for providing your clients with specialized services that’ll in turn need to be supported by specialized tech tools, which will help dictate what your tech stack should be comprised of.

Kane Polakoff, principal and CAS practice leader at CohnReznick LLP, says standardization across the firm is key. If there’s no standard solution to build from, it’s difficult to scale up. Polakoff says you want your people to become familiar with a tool and process. This essentially means selecting a standard tool per process or service and ensuring your team is well trained on both. Polakoff also suggests considering whether you’ll require your clients to adopt certain systems or processes as part of their acceptance criteria. This question should be answered as part of your practice’s revenue model and long-term strategy.

Laura Steuber, CPA, principal and director of CAS at Miller Cooper & Co. Ltd., emphasizes the importance of standardization and the efficiencies it brings. Additionally, she notes that it’s important to establish relationships with your go-to software providers, especially if you’re assigned to a dedicated representative who can assist with supporting and training your team. Once you purchase or license a software solution, you might be assigned a team or consultant that’ll help you implement it and be available for assistance if any issues arise. Which vendor(s) will provide additional services, like training and support, should be an evaluation point when you’re in the selection process.

RECOMMENDED TECH STACK TOOLS

So, what are some examples of software that can comprise a CAS practice’s tech stack?

First, Polakoff recommends choosing cloud-based software solutions, as this allows for greater flexibility and mobility (which could also help in attracting and retaining talent).

For small or new practices, Dossani recommends sticking to the basics and looking into one of Intuit’s simple platforms to start, like the ever-popular QuickBooks and TurboTax offerings. As your CAS practice grows, he recommends exploring the utilities of more robust solutions like Sage Intacct.

Generally speaking, Steuber says one of the most important tools for a CAS practice is a general ledger package. After that, she recommends implementing software that helps automate or upgrade processes for managing and monitoring bill payments, bank feeds, tax forms, expense reporting, payroll, and sales tax. Steuber likes Bill for a payments solution, Expensify for expense management, and Avalara for sales tax calculations and reporting. Once you establish your go-to tech for these processes, Steuber recommends considering a consolidations tool and a forecasting and budgeting system for greater business visibility.

Of course, there are countless more solutions out there. Overall, your CAS practice’s focus area(s) should drive what your tech stack is comprised of. Take some time to evaluate your options to determine which ones work well together and make the most sense for your practice, staff, and clients.

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