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How Client Accounting Services (CAS) / Outsourced Accounting (OA) Fits Within Firms [Survey Data]

Posted by Joshua Feinberg on Sep 11, 2019 6:50:00 AM
Joshua Feinberg
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How Client Accounting Services (CAS) / Outsourced Accounting (OA) Fits Within Firms [Survey Data]

In Vic .ai’s recent survey of Client Accounting Services and Outsourced Accounting firms, we asked participants how their teams fit with the rest of their firms.

In this blog post, you’ll learn what percentage of each firm’s staff is devoted to client accounting / outsourced accounting, what percentage of each firm’s total revenue comes from the team, and how many clients each team has.

The following is an excerpt from our report, The State of Client Accounting Services and Outsourced Accounting.

What percentage of your firm’s staff is dedicated to CAS/OA?

Earlier in this report, participants documented how many employees work at their firms (across all team(s)/location(s)) and how many employees work on their CAS/OA teams.

In this next question, participants indicated the percentage of their firm’s staff that is dedicated to client accounting / outsourced accounting.

On a macro level, the average participant’s firm has 57% of their staff dedicated to CAS/OA (with a median of 60% of their staff dedicated to CAS/OA).

The most common response among participants (30.43%) is all, or nearly all of their staff (91%-100%) is dedicated to CAS/OA.

The second most common response among participants (21.74%) is that only a small percentage of their staff (1%-10%) is dedicated to CAS/OA.

What’s the most logical explanation for this polarization? 

The accounting firms with all or nearly all of their staff dedicated to CAS/OA are outsourced accounting/bookkeeping firms. At the other extreme, the firms with only a small percentage of their staff (1%-10%) dedicated to CAS/OA are CPA firms with an internal CAS/OA team.

What percentage of your firm’s revenue comes from CAS/OA?

Besides the percentage of the firm’s staff that’s dedicated to CAS/OA, participants also indicated the percentage of their firms’ revenue that comes from CAS/OA.

On a macro level, the average participant’s firm has 55% of their firm’s revenue coming from CAS/OA (with a median of 50% of revenue coming from CAS/OA).

The most common response among participants (23.91%) is all, or nearly all of their revenue (91%-100%) comes from CAS/OA.

The second most common response among participants (13.04%) is that a relatively small percentage of their revenue (11%-20%) comes from CAS/OA.

What’s the most logical explanation for this polarization? 

The accounting firms with all or nearly all of their revenue coming from CAS/OA are outsourced accounting/bookkeeping firms. At the other extreme, the firms with only a small percentage of their revenue (11%-20%) coming from CAS/OA are CPA firms with an internal CAS/OA team.

How many CAS/OA clients does your firm have currently?

When it comes to understanding how CAS/OA teams fit in with the rest of their firms, participants next indicated the number of CAS/OA clients their firms currently have.

The most common response from 28.26% of participants proved to be 101-500 clients. 

The second and third most common brackets for the number of CAS/OA clients was 1-10 clients (17.39%) and 11-20 clients (15.22%). So in aggregate, approximately one-third of participants (32.61%) come from firms that service 1-20 clients.

 

In this article, you’ve learned what percentage of each firm’s staff is devoted to client accounting / outsourced accounting, what percentage of the firm’s total revenue comes from the team, and how many clients each team has.

How does this survey data compare with your client accounting services team or outsourced accounting firm? Tell us more in the section for comments below.

To learn the answers to all 30 questions asked in the survey, download your free copy of The State of Client Accounting Services and Outsourced Accounting.

Download Free Report:  The State of Client Accounting Services  and Outsourced Accounting

Topics: State of Client Accounting Services

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