In a recent episode of the THRIVE podcast, Joe Woodard, CEO of Woodard, joined host Gene Marks for a candid conversation about the transformative potential of client advisory services (CAS) in the accounting profession. The discussion centered on how CPAs can evolve beyond traditional tax and compliance work to become indispensable business advisors.
Joe emphasized that CAS represents the future of the accounting profession, offering services that go far beyond tax preparation and financial statements. He outlined key services that clients value most, including regulatory compliance, risk mitigation, spend management, and managerial compliance. These areas are often overlooked but provide small and mid-sized businesses with essential “journey protection” that keeps them compliant and financially healthy.
A recurring challenge for firms is how to price these expanded services. Joe explained that many accountants remain stuck in a “treadmill” of seasonal tax work, which limits revenue and capacity. He recommends moving away from hourly rates to flat monthly fees, which provide transparency and soften the impact of price increases. This approach not only boosts profitability but also encourages clients to engage more proactively. Joe also highlighted the importance of including value-added services like mid-year tax meetings and unlimited notice handling to enhance client satisfaction.
Joe acknowledged the rapid advancement of AI and automation in tasks like tax preparation and bookkeeping. Tax preparation, being finite, is particularly susceptible to automation. Bookkeeping, though more complex, is also becoming more efficient with AI assistance. However, Joe emphasized that accountants remain critical as overseers, validators, and trusted advisors. Clients may trust AI’s output but still seek human confirmation and guidance, reinforcing the accountant’s role as a strategic partner.
Joe noted that smaller firms are often more nimble and can adopt CAS models more quickly. In contrast, larger firms with multiple partners, particularly those who own tax portfolios, may be slower to adapt due to entrenched revenue streams and decision-making structures. Nonetheless, Joe sees a paradigm shift underway, with CAS poised to overtake tax services as the primary revenue driver within five to ten years, as projected by the AICPA.
Interestingly, while accountants often gravitate toward financial planning and analysis (FP&A) services, Joe highlighted that clients prioritize controllership services, such as compliance support, risk management, and spend management, over FP&A. Addressing these pain points first builds trust and opens the door to more strategic advisory engagements.
Joe concluded the discussion by sharing details about the upcoming Scaling New Heights conference, a CAS-focused event designed to equip accountants with the tools, strategies, and community support to successfully transition to CAS models. Scaling New Heights will take place June 22-25 in Orlando, Florida, offering sessions on business leadership, firm development, and advanced CAS strategies.
In this episode of the THRIVE podcast, Joe Woodard shares a valuable blueprint for accountants aiming to transition from transactional work to high-value advisory services. By adopting value-based pricing, embracing technology, and focusing on clients’ top priorities, CPAs can transform their practices and build stronger, more resilient relationships.
🎧 Listen to the full THRIVE podcast episode here: Moving CPAs from Routine Tasks to Trusted Business Advisors
This article was drafted using AI and reviewed and edited by humans.