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Art of Accounting: Accountants’ growing services

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2 years ago

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Last week I wrote about finding out what your clients need and finding ways to provide it to them. I think that is a great strategy. However, I have another strategy, and that is to develop services you think clients would need and offer those. The following are some illustrations of services that have been successful this way, along with suggestions of added services you could impress upon your clients the importance of engaging you to perform those services for them. 

  • Small business accounting software: When QuickBooks and its DOS predecessors were introduced, we approached our clients to adopt them with us, leading them into the use of such software. Today it is pretty much universal, but that wasn’t so in the early 1980s when PCs were first made available. 
  • Client accounting services: CAS services were always available through the smaller accounting firms, but about 10 years ago the larger firms started aggressively promoting these services. Many clients today are abandoning their inhouse bookkeepers for the CAS services provided by accounting firms. This has also grown into outsourced fractional advisory and CFO services. The clients did not come to us with this need; we went to them. This also includes payroll processing and other accounting functions that typically have been performed in-house, although payroll processing was way ahead of this trend.
  • Business valuations services as benchmarks to measure growth in value: Clients always ask what we think their business is worth, and we usually reply with some vague comments. Developing a method to initially value the business and then updating it annually can be an effective way of easing clients into a value creation mindset rather than by them only looking at the annual profits or free cash flow. 
  • Assisting clients with a buy-sell agreement: Many clients with multiple owners either do not have a buy-sell agreement or a current one. This is an important issue, and the absence of such an agreement could cause many problems and consternation if there is a death of one of the owners or a sudden disability. Outdated agreements also should be brought up to current and projected reality. This is a service where you could suggest being engaged to facilitate a series of meetings to have the clients get it done. 
  • Internal control review: Clients do not lose sleep over taxes but do lose sleep wondering if they have proper controls in place. When an audit is performed, we have myriad checklists and processes to follow and then usually prepare a management letter with comments. Many times the current year’s management letter repeats what was in the previous year’s. A suggestion is to present an engagement proposal to assist in implementing some of the necessary changes. For your non-audit clients, you could use the audit programs and techniques to perform a full accounting control review of their business. These are clients you are familiar with, and it should not be too difficult to come up with a fixed fee. This could be segmented into two stages: an exploratory stage and an implementation stage. The exploratory stage would be similar to what you do on an audit and would include a memo similar to what is included in the management letter. The implementation could be left to the client. If they have no action on it for about six months, you could present your proposal for this implementation stage.
  • Attorney trust accounts: These must be maintained carefully and exactly. A suggested service for lawyers is to do a “surprise” reconciliation of the bank account balances and the amounts held for clients, and then to assist in straightening out anything that isn’t fully in order.
  • An 11-year profit and loss trend analysis: The P&L analysis can be prepared to assist clients in their long-range planning. This would start with the previous five year’s summary P&L, an annualization of the current year and then using the trends to project the next five years. You should include data such as the number of sales invoices, average sale per invoice, units sold, gross margins and percent of materials purchased to sales for each year, employee headcount and sales per full-time employee, sales from the top five or 10 customers and whatever other data clients use to manage their businesses. I usually start with a freebee of the 11-year P&L and tell clients what else should be done, the benefits to them and my charges. Freebees take time, but if this is an ongoing relationship I believe you should have this information at your fingertips. It is also a way to start a discussion about where the client thinks the business is headed and their efforts in that going forward. 
  • Succession planning: This is something every business client needs, but most do not want to confront. This service not only helps a client prepare for their exit, but also provides the comfort that the business could continue operating in their absence and their governance documents are in order, that someone could step in to sign checks if they are not available for some reason, and that they could plan an extended vacation trip without worrying the business would collapse. This can also segue into how clients envision their personal future with or without the business, how strong some of their key personnel are in managing and leadership, and their relationships with customers, vendors and personnel.
  • Assisting not-for-profit organizations in added services: CAS and audits are typical services  provided to NFP clients. However, they usually need many other services, including designing controls; reviewing procurement procedures, grant applications and compliance; managing cash flow; handling tax compliance for unrelated business activities; financial literacy training for board members; and assisting with onboarding a new CEO, CFO or controller.
  • Retirement income and estate liquidity for older clients: These are a concern for clients contemplating retiring or those concerned about the disposition of their estates and liquidity for the surviving spouses and others that depend upon the client for their cash flow.

All of the above have been provided by me, and the clients were usually introduced to these services by me. Usually, the proposal was generated because of my concern for the client or because of an opening created by something the client said but wasn’t able to fully articulate their concerns. The above is a small sampling, and there are many other situations where an independent CPA or financial advisor could assist clients. It requires listening, being receptive to tip-offs by the client, and actually proposing to assist in these areas. Waiting for the client to ask for such help could be like waiting for a train that already left the station.

The above suggests ways to grow your practice (and revenue), add interesting specialties, develop staff in a greater variety of services, and really help clients by the added value, personal financial security and wealth management provided by our assistance.

Do not hesitate to contact me at [email protected] with your practice management questions or about engagements you might not be able to perform.

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Accounting

AI-Driven Automation and Continuous Accounting Frameworks

Published

7 days ago

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August 15, 2026

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The accounting profession is undergoing a fundamental structural transition as enterprise finance departments shift from periodic month-end closes toward automated continuous accounting models. By integrating specialized machine learning algorithms directly into enterprise resource planning (ERP) platforms, chief accounting officers are transforming financial reporting from a retrospective exercise into a real-time operational asset.

The Shift from Periodic Close to Continuous Financial Reporting
Traditional accounting workflows heavily relied on manual data reconciliation, spreadsheet calculations, and multi-week closing cycles at the end of each fiscal period. In contrast, continuous accounting frameworks utilize automated software agents to process, validate, and post transactional data in real time as business activities occur.

Automated bank reconciliation tools cross-reference incoming bank feeds, invoice records, and purchase orders automatically. By resolving transactional variances instantly throughout the month, corporate accounting teams eliminate the traditional workload spikes associated with quarterly and annual closes.

Machine Learning in Audit Trails and Anomaly Detection
Advanced natural language processing (NLP) and machine learning tools are redefining internal audit and financial control environments. Automated systems analyze 100% of general ledger entries, identifying anomalous transactions, duplicate payments, and unauthorized journal entries in real time.

Rather than relying on random statistical sampling, corporate internal auditors can focus their attention on high-risk flags automatically surfaced by algorithmic monitoring platforms. This continuous risk assessment strengthens internal controls over financial reporting (ICFR) and significantly reduces fraud risk.

Evolving Roles for Accounting Professionals
As routine data entry and manual reconciliation tasks become fully automated, the skill set required for accounting professionals is shifting toward data analysis, system design, and strategic business advisory.
– Systems Governance: Accountants are increasingly responsible for monitoring algorithmic accuracy and managing data integration pipelines.
– Business Partnership: Finance professionals leverage real-time financial dashboards to advise operational leaders on margin management and working capital allocation.
– Regulatory Compliance Management: Accounting teams utilize automated platforms to ensure compliance with dynamic tax codes and international accounting standards.

Core Implementation Recommendations
1. Deploy Automated Reconciliation Tools: Integrate continuous transaction processing modules into existing enterprise ERP architectures.
2. Establish Algorithmic Governance Controls: Implement strict internal testing protocols to ensure automated accounting rules comply with GAAP/IFRS standards.
3. Reskill Accounting Teams: Invest in training finance staff on data analytics, workflow automation, and predictive financial modeling.

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Accounting

Global ESG Reporting Standards and Double Materiality Compliance

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2 weeks ago

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August 9, 2026

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Corporate accounting departments face expanding reporting expectations as international sustainability disclosure standards achieve regulatory enforcement across major global jurisdictions. Chief Accounting Officers (CAOs) and corporate controllers are establishing rigorous internal accounting controls to treat Environmental, Social, and Governance (ESG) metrics with the same data precision, auditability, and governance as traditional financial statements.

Regulatory Harmonization Under Global Sustainability Frameworks
The implementation of standardized sustainability reporting frameworks—notably rules established by international sustainability accounting boards—has created unified expectations for public and large private enterprises. Corporations must report standardized metrics covering greenhouse gas emissions (Scope 1, 2, and material Scope 3), energy utilization, workforce demographics, and supply chain governance.

In Europe and other participating international jurisdictions, double materiality principles are mandatory. Under double materiality, organizations must report both how external sustainability risks impact corporate financial performance, and how internal corporate operations affect surrounding environmental and social structures.

Integrating Sustainability Metrics into Core ERP Systems
To provide auditable non-financial data, enterprise organizations are integrating specialized carbon accounting and ESG management platforms directly into core ERP systems. Automated data collectors capture energy utility invoices, logistics fuel consumption metrics, and vendor compliance records in real time.

Establishing automated, traceable data pipelines ensures that non-financial reporting is supported by clear audit trails. This structured approach allows external financial auditors to provide reasonable assurance on sustainability disclosures during annual corporate reporting cycles.

Financial Impacts and Capital Market Disclosure
Accurate ESG reporting directly influences corporate cost of capital and institutional credit ratings. Commercial lenders and institutional asset managers systematically incorporate sustainability metrics into risk pricing models. Companies that demonstrate transparent, verifiable progress in operational energy efficiency and climate risk mitigation benefit from expanded access to green bond markets and lower debt pricing.

Action Steps for Accounting Leadership
1. Implement Double Materiality Frameworks: Conduct comprehensive assessments to identify material financial and operational sustainability metrics.
2. Build Auditable Non-Financial Data Pipelines: Automate ESG data collection within core accounting software to ensure data integrity.
3. Align Sustainability with Annual Financial Filings: Prepare non-financial disclosures concurrently with financial statements to satisfy regulatory audit expectations.

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Accounting

Modernizing Internal Controls: Machine Learning and Continuous Monitoring in Auditing

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2 weeks ago

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August 5, 2026

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Internal audit departments and corporate risk managers are modernizing internal control frameworks by shifting from periodic sampling techniques to continuous monitoring and machine learning analytics. As operational data volumes increase across enterprise organizations, automated control testing ensures financial integrity, prevents corporate fraud, and streamlines annual audit engagements.

The Limitation of Periodic Audit Sampling
Historically, internal and external auditors evaluated internal controls by reviewing random samples of financial transactions—often analyzing less than five percent of total ledger entries. In complex enterprise environments, periodic sampling methods carry inherent risks of overlooking localized financial misstatements, unauthorized disbursements, or operational control breakdowns.

In 2026, progressive internal audit functions are utilizing automated continuous monitoring platforms that evaluate one hundred percent of financial transactions in real time. Continuous control auditing systems continuously monitor general ledger entries, procurement approvals, and expense reimbursements across all operating subsidiaries.

AI-Powered Fraud Detection and Anomaly Identification
Machine learning models trained on historical corporate financial data excel at identifying subtle transactional anomalies that indicate potential fraud or operational error. Automated systems instantly flag duplicate invoice payments, unapproved vendor creation, unusual journal entry timing, and unauthorized override of authority thresholds.

When an anomaly is detected, the automated auditing platform generates an instant risk alert, allowing internal audit teams to investigate root causes immediately. Early detection prevents minor operational errors from escalating into material weaknesses in financial reporting.

Streamlining External Audit Preparation
Continuous internal control monitoring delivers significant benefits during annual external financial audits. External audit firms can review continuous audit logs and automated control testing documentation, reducing the time required for manual field testing.

This integrated approach lowers overall audit compliance fees, reduces administrative burdens on corporate accounting staff, and provides senior management and audit committees with real-time visibility into the organization’s overall risk profile.

Core Implementation Guidelines
1. Transition to 100% Data Testing: Replace legacy sampling methods with automated continuous audit monitoring systems.
2. Deploy Anomaly Detection Algorithms: Implement machine learning models to identify unauthorized transactions and operational control overrides.
3. Align Internal and External Audit Workflows: Coordinate continuous control testing protocols with external auditors to optimize annual compliance cycles.

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