Accounts Receivable Services Emerging as a Powerful Revenue Driver for Accounting Firms

Client accounting services (CAS) are becoming an important revenue category for accounting firms of all sizes, with large firms seeing them gain a significant portion of their revenue over the past two years, according to a survey by the AICPA Private Business Practices Section. (PCPS) and, the Institute’s marketing and technology subsidiary.

The percentage of net client fees provided by CAS, which includes outsourced financial and accounting services and other administrative support services for clients, more than doubled for companies in the largest revenue segment tracked by the national survey 2016 Management of an Accounting Practice (MAP), the first results of which were released earlier this fall and showed revenue growth for businesses of all sizes.

Among companies with at least $10 million in revenue that offer virtual CFO and other customer accounting services, CAS accounted for 9% of net customer charges, compared to 3.9% in the 2014 MAP survey. The CAS category also produced double-digit percentage gains in the next two largest MAP segments – companies with annual revenue of $5-10 million and those with annual turnover of 1.5 to 5 million dollars.

“It’s safe to say that nearly 10% of the profession’s revenue is spent on client accounting,” said Mark Koziel, CPA, CGMA, AICPA Executive Vice President, Firm Services, who has discussed the survey results at the Digital CPA 2016 conference in Las Vegas. “And depending on the size of the business, it might be more or a little less, but overall it’s a strong category on its own. Tax and auditing continue to be the number one and number two revenue categories, but accounts receivable is showing increasing importance to the profession.

Among companies that offer CAS, the percentage that the category contributes to the top line ranged from 20% for the smallest companies (those with revenues below $200,000) to 8.5% for companies in the second segment. significant revenue.

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