Accounting and finance have always been a complex topic for Small to Midsize Business (SMB) owners. Many businesses lack the scale to employ a full team that includes a CFO, accountants, bookkeeping staff, and others. Instead, they might have one or two extremely overworked employees trying to manage everything. Or, in some instances, the entrepreneur might manage accounting and finance by themselves.
This approach has long been suboptimal, but finding a solution has been tricky until recent years. The rapid growth of Client Accounting and Advisory Services (CAAS), also known as Client Advisory Services (CAS), has been a game-changer for many SMBs, empowering them to take control of their finances and use them as a platform to build a competitive advantage, not a weakness.
What is CAAS?
Client Advisory & Accounting Services (CAAS), also known as outsourced accounting, Client Accounting Services, or Cloud Accounting Services (CAS), allow businesses to outsource some or all of their accounting processes to an established CPA firm.
A CAAS provider performs routine accounting tasks such as weekly bookkeeping, month-end close, bill pay support, and preparation of financial statements. Beyond these fundamentals, CAAS teams also deliver high-quality financial insights that help business leaders make better, faster decisions.
Many CAAS engagements include an advisory component focused on helping companies build the skills and processes needed to fully understand and use their financial data. This strategic layer is what separates CAAS from traditional outsourced bookkeeping. It is not just about recording transactions, but about strengthening how the business operates.
Why Businesses Turn to CAAS
We regularly hear similar concerns from business owners who are struggling with their accounting and finance functions:
- “We just can’t seem to retain skilled accountants.”
- “I spend too much time on the details and don’t have the bandwidth to think strategically.”
- “We struggle to meet deadlines and stay ahead.”
- “We can’t get timely, reliable financial information.”
- “Accounting and bookkeeping are taking over my life.”
In addition to these operational challenges, hiring in-house accounting talent is expensive. While an entry-level bookkeeper salary can reach $57,000, the true cost is much higher once payroll taxes, benefits, training, vacation time, and human resources demands are factored in.
By contrast, companies willing to adopt modern technology can outsource these functions for a predictable monthly cost and gain access to the depth of experience found in a full-service CPA firm.
CAAS Service Offerings
CAAS services are typically structured across three categories, each supporting a different level of financial need.
Outsourced Accounting Services
These services focus on historical reporting and operational accuracy. Common activities include routine bookkeeping, assistance with bill pay, and preparation of financial statements.
Outsourced Controller Services
Controller-level services introduce deeper analysis and oversight. They often include tracking performance against budgets, overseeing the month-end close, implementing digital accounting systems, and providing insight into financial trends.
Outsourced CFO Services
Outsourced CFO services are highly strategic and forward-looking. These engagements may support capital raises, debt financing, long-term forecasting, KPI development, and preparation for a sale or other major transaction.
How CAAS Works with LBMC
When you partner with LBMC’s CAAS team, the engagement follows a structured onboarding and support process.
Week 1
You are introduced to an onboarding team that includes a CPA, an onboarding specialist, and a bookkeeper. The team gains access to your accounting systems, evaluates your current environment, and makes recommendations to support a smooth transition.
Weeks 2–3
Following the assessment, the team begins implementing your customized accounting plan. The timeline depends on the scope of services selected and the condition of your existing accounting infrastructure.
Ongoing Support
Once onboarding is complete, transactions are recorded daily, weekly, or monthly, and bank and credit card accounts are reconciled regularly. You have real-time access to your financial information.
At the close of each reporting period, you receive financial statements and analysis prepared by a CPA. Your team remains available by phone, email, or text to answer questions and provide guidance.
Benefits of Working with a CAAS Provider
By working with a well-established CAAS provider, businesses can unlock a wide range of advantages that can help boost performance. The key benefits experienced by businesses that work with a CAAS provider include:
- Access to domain expertise in accounting and finance with knowledge tailored to your business’s specific industry.
- Use of proven accounting and finance best practices that help your business succeed.
- Creation of an efficient, tech-first accounting framework that optimizes costs by embracing automation and efficiency.
- Ability to establish a proactive approach to controlling spending.
- Exposure to proven strategic leaders who have the experience to shape meaningful KPIs, benchmarks, and strategies that can push your business forward.
- Access to sophisticated dashboards and analytics tools that help your business look forward, rather than backwards.
- Standardized processes that will in turn create efficiencies and new margin growth in your business.
Together, these benefits are a testament to the ripple effect that working with a CAAS partner can have on your wider business. For more information on how these services can benefit your company, read “What are Client Accounting Services?“
Work with LBMC’s CAAS Team
Reliable financial data is essential for making informed business decisions. Without it, leaders are forced to rely on intuition instead of insight.
At LBMC, our Client Advisory & Accounting Services team supports entrepreneurial businesses across Tennessee, Kentucky, and Indiana, with offices in Memphis, Knoxville, Nashville, and Louisville. Our professionals have experience across outsourced accounting, controller, and CFO engagements and are ready to partner with your business.
If you are interested in learning more about how LBMC’s CAAS offerings can support your organization, contact the LBMC team today.