Successful management and resolution of these matters is essential to keep moving toward your business objectives. KPMG’s multi-disciplinary approach and deep, practical industry knowledge help clients meet challenges and respond to opportunities. If you’re convinced that accounting advisory is the way to go but not sure if you have what it takes, I want to encourage you to start taking steps.
For example, a cost segmentation study for a construction firm would be different than one for a car dealership. If you can tweak each email to use a case study for the industry segment, https://www.bookstime.com/ along with pain points they might face, you’ll likely have better newsletter open rates and reader engagement. Remember to personalize the newsletter with at least the first-name field.
Portfolio Management
The firm also discovered an error in the client’s calculations on the profitability of a project. With revised data, the client’s leadership determined that the project wasn’t actually bringing in money. “We never put a value on that insight, but that’s just one example of how we bring our knowledge to the table,” Moe said. For one client, a construction company with about 124 employees and revenue of $24 million a year, the firm spent around eight weeks interviewing leadership and key employees and mapping out and redesigning processes. They estimate the changes they made saved the client 91 employee-hours per week, or $136,000 a year in expenses.
The firm started out as generalists, recalled Tina Moe, CPA, CGMA, the owner and CEO of ACT Services. «I joked that our clients just had to be nice, be compliant, and pay our bill.» Bookkeeping isn’t considered «true» CAS, McCurley said, as it happens after the fact and does not provide clients with timely data they can use to improve their businesses.
Why do clients require advisory in accounting?
This type of accounting “is actually somewhat complex,” Khalil said, as delivery companies can have different agreements with individual franchisors and charge them different rates. MAK analyzed how much a client’s actual gross profit changed when it shifted revenue between carryout sales and third-party sales, and some clients changed their pricing as a result. The firm would then analyze the results of these new pricing decisions, and the client would adjust if necessary.
«As you start growing, it might not all be internal resources that makes your CAS practice successful,» she pointed out. «You’ve got to rely on some other firms sometimes to be that partner to help accounting advisory services you grow.» Though the prospect of starting what’s essentially a new business within your firm can seem daunting, the good news for firms thinking of adopting CAS is that others have paved the way.
