TWR Podcast Episode 120: How CAS and AI Are Reshaping the Top 100 Firms

Joe Woodard and Dan Hood discuss CAS strategy, firm structure, and the near-future impact of AI

In this episode of The Woodard Report Podcast, Joe Woodard flips the mic on Dan Hood, Editor-in-Chief of Accounting Today, to dive into what’s driving change across the accounting profession. Drawing from Accounting Today’s latest Top 100 Firms report, Joe and Dan unpack the data behind slowing growth, the rise of client advisory services (CAS), and how AI and staffing shortages are shaping the future of the profession.

Big firms slowed, but mid-sized firms are thriving

The report showed growth among the Top 100 Firms dropped to 4.89%, but the number hides an important distinction. Growth at the top of the list—among the $14B+ firms—slowed dramatically, largely due to declines in advisory services.

“When they slow down, everything slows down,” Dan says.

Smaller firms on the list, and regional leaders just outside the Top 100, saw growth closer to 14–15%.

CAS is the best bet for growth—but it’s still evolving

CAS is widely considered the future of advisory. But as Dan explains, it’s still early days.

“Even if you've had it for three, four, five years, that's still early days. They're still figuring it out.”

Joe highlights the opportunity CAS offers: non-seasonal, recurring revenue that improves cash flow and capacity planning—and makes firms more attractive to private equity. But Dan emphasizes that CAS is different from traditional advisory. It’s a bundled offering that includes bookkeeping, controllership, FP&A, and CFO services—and many firms are still figuring out how to package and price those components effectively.

The margins are real—and rising

According to the report, some firms are already seeing CAS margins over 40%. But Woodard’s consulting data suggests that’s just the beginning.

“We're seeing people who are successfully achieving 60 to 70% gross profit margin,” Joe notes.

Dan agrees:

“What you're seeing is that 40% is the low end… Those margins will go up.”

The key to success? Integration.

Joe warns against siloing CAS into five separate service lines or isolating it from tax.

“Put the client in the center of the table, not the partner and not the service.”

Dan adds that what makes CAS different is its unification of multiple services under a single relationship:

“You're not thinking, ‘I sell this service.’ You're thinking, ‘I deliver value to my client and help their business run.’”

Staffing remains the profession’s biggest barrier

Firms have reported talent issues as a top concern for five years running. But Dan sees a shift:

“They’re moving from ‘we can’t find people’ to ‘how do we do it with fewer people?’”

Firms are realizing that not every task requires a CPA—or even an accountant. They're also embracing automation, offshore talent, and non-traditional hires. But that requires process, oversight, and—perhaps most importantly—management.

“The structure and the history of the accounting firm used to manage your staff for you. Now you actually have to manage them.”

Joe adds:

“We have a skills deficit in management, leadership… and in creating process.”

AI is coming fast—but it’s not quite here yet

The potential for AI to reshape accounting is massive—but most firms are still in the research phase.

“For the majority of us, it is science near-future,” Dan says.

Joe shares real-world use cases for AI in CAS, including a five-minute, AI-powered spend assessment that would normally take hours. But both caution firms to approach AI like a new intern: full of promise, but in need of supervision—for now.

Final advice for firm leaders

When asked what he’d prioritize if running a firm aiming for the Top 100, Dan’s answer is clear:

“A huge focus on advisory, and advisory through the lens of CAS… It’s the clear model for organic growth.”

Listen to the full episode

Explore more in The Woodard Report Podcast Episode 120: How CAS and AI Are Reshaping the Top 100 Firms at woodard.com/podcast.

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