Are you having trouble navigating the complexities of integrating Client Accounting Services (CAS) into your accounting practice? 

In this episode, Damien and Penny have on Jan Haugo to dive deep into the journey of adopting CAS. They explore how this isn't just about embracing new technology but fundamentally evolving your business model to align with the dynamic demands of CAS. From the significance of starting with robust bookkeeping practices to managing client expectations and adapting to real-time needs, this episode is packed with invaluable advice for firms ready to blend traditional knowledge with modern practices.

They discuss the broad scope of CAS, the critical role of bookkeeping as a foundation for successful implementation, and the challenges in aligning partners' visions within a firm. They also dive into the nuances of client management, the necessity of consistency in bookkeeping, and the importance of strategic client selection and verticalization. Tune in for an episode that demystifies the journey toward integrating CAS to revolutionize your accounting practice!

[00:00 - 10:48] The Challenges of Implementing CAS in Traditional Accounting Firms

• Jan is introduced and shares her insights and passion for technology and her interest in new startups.
• Jan describes her journey from traditional accounting to going virtual in 2010, her involvement with the Institute of Certified Bookkeepers, and her current roles, including COO and head of bookkeeping.
• We discuss CAS in accounting and the challenges faced by firms in integrating it.
• Traditional firms struggle to adapt CAS into their existing models and the misconception of it being a 'plug and play' addition.
• The discussion highlights the difference between skills needed for tax returns and bookkeeping and the importance of having staff with the right skill set for CAS.
• Converting clients to regular CAS clients is difficult due to a lack of preparation and mindset change needed in firms.
• We discuss the complexity of offering a mix of CAS, traditional, advisory, and other services by the same team, leading to performance and scalability issues.

[10:49 - 27:30] Successful CAS Starts With Bookkeeping

• Jan used ChatGPT to analyze the QuickBooks Connect agenda and identify sessions related to CAS and AI, highlighting the utility of AI in categorizing and defining complex topics.
• Firms face difficulties in clearly defining CAS. This can lead to challenges in implementation and integration.
• Successful CAS implementations often start with bookkeeping
• Effective CAS requires control over data flow and cooperation from clients, which is not always straightforward.
• Firms sometimes need to let go of clients who don’t comply with the necessary changes for effective CAS implementation.

[27:31 - 32:25] Navigating Change and Client Relationships in Transitioning

• We discuss how to navigate client relationships, especially when changes in banking or technology are involved.
• Find practical solutions like opening an operating account to maintain the client's existing banking relationships while facilitating the firm’s work.
• Uses easy-to-follow demos to convince clients to adapt to new systems.
• Get a good client success manager!
• Our discussion emphasizes the need for clear communication and setting expectations with clients regarding service changes and requirements.

[32:25 - 48:37] Going Virtual Takes a Lot of Work, But It’s Worth It

• Jan Haugo emphasizes the importance of consistency in bookkeeping and accounting services.
• Penny and Jan discuss the challenges of transitioning from a traditional accounting practice to a virtual one.
• Damien Greathead adds that practitioners must recognize the journey of transitioning to a virtual practice takes time and involves managing client expectations.
• Penny highlights the challenges of bookkeeping during tax season.
• Damien and Jan discuss the importance of hands-on technical training in the rapidly changing accounting industry.

Connect with Jan on LinkedIn!

Tweetable Quotes

“They think it's a plug-and-play model... but they don't adapt it to the workflow that is required." - Jan Haugo

"Just because someone can do a tax return doesn't mean that they can do the bookkeeping." - Jan Haugo

“Ultimately, CAS actually has to start with bookkeeping. It actually has to start with doing the bookkeeping for the client so that you can then build upon with additional.”  – Damien Greathead

"I have fired clients for not having the right bank account... if I can't get a statement, I can't get the information connected, or I can't even get bookkeeper access." - Jan Haugo

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Websites: https://moneypennyllc.com/

LinkedIn: https://www.linkedin.com/in/damiengreathead/

Twitter: @Damien_GH

LinkedIn: https://www.linkedin.com/in/penny-breslin-0228b81/

Twitter: @pennyb57