By Ilan Bernstein, Global CEO of Triggerps.com
The client accounting and advisory services (CAAS) segment has seen tremendous growth over the past five years, with leading firms growing at a 9% CAGR from 2018-2023. That’s nearly 2x the industry average! This growth has been driven by several macro trends – business complexity, talent gaps, fractional roles, and technology adoption.
At Trigger, we speak with CAAS practices, like yours, every day. Based on our conversations with clients and friends, we have observed core growth trends in those groups, such as:
- Expanding from pure bookkeeping into full-service CAAS
- Offering specialized CAAS services for high-demand industries (e.g. Construction CAAS; Healthcare CAAS)
- Providing fractional finance staffing for interim CFO and controller roles
- Integrating software automation tools to improve productivity
- Implementing predictive data analytics for financial planning
- Transitioning elements of delivery to offshore centers to boost scalability
- Adopting tailored, usage-based pricing models
All of these are shared traits of fast-growing CAAS practices. However, we have observed another practice of the ultra-high growth CAAS groups: A subscription-based “CAAS as a product” model. Among the avant-garde, elite growth firms, a product approach to CAAS has shortened their sale cycle, flattened seasonality, created predictable revenue, and much more. It’s clear that the opportunity for firms to take more of a product-oriented approach and drive recurring revenue is undeniable.
However, change is tough, and we hear that. There are some myths that we all have to overcome regarding the productization of services before implementing them. Here are some of the most frequent concerns we’ve heard:
Myth 1: Products are unbecoming of a sophisticated accounting firm
Reality: Modular solutions can still meet unique client needs and make your client’s buying experience easy.
Myth 2: Products are impersonal
Reality: The regimented nature of these products actually creates more touchpoints and less conflict
Myth 3: Service will suffer
Reality: Quality is embedded in our culture regardless of the pricing model
By transitioning further to a subscription-based model powered by well-designed CAAS products, CAAS practices can realize many benefits, including:
- Predictable recurring revenue and cash flows (MRR)
- Higher customer lifetime value (LTV)
- Increased perceived value for clients.
- Economies of scale driving lower costs (e.g., CAC)
- Flexible billing options (monthly/quarterly/annual)
Want to rapidly grow your CAAS program but need talent, teams, and systems for success? Trigger has created the products and services you need to power your growth through our innovative augmentation and white-label solutions.
Contact us today to start the conversation and get growing.
Your Trigger Team