Leveraging spend management to build a CAS practice and step into the controllership role

For many small- and mid-sized businesses, managing financial operations and effectively controlling spend can be daunting. Limited resources, lack of specialized knowledge, and an inadequate technology infrastructure often hinder the ability to achieve financial success. This is where a robust Client Advisory Services (CAS) practice—integrated with spend management solutions and backed by technology—can transform these challenges into opportunities for growth and sustainability.

Understanding spend management in the CAS framework

Spend management is more than just tracking expenses; it involves a strategic approach to overseeing all financial outflows, including purchasing, procurement, vendor management, and budget planning. Within a CAS framework, spend management is a crucial component that enables advisors to provide deeper insights, stronger control, and more proactive financial guidance.

For firms aiming to build a CAS practice, spend management offers an entry point to demonstrate value beyond traditional accounting services. It’s an opportunity to transition from simply providing financial reports to acting as a strategic partner that can impact the client’s bottom line through effective spending strategies.

Technology as the catalyst for effective spend management

To build a successful CAS practice, leveraging technology is essential. Modern spend management platforms automate expense tracking, streamline purchasing workflows, and integrate with accounting systems to provide real-time visibility into financial data. This integration is especially valuable for businesses that lack the in-house expertise to manage complex financial processes.

By adopting cloud-based spend management tools, firms can offer clients greater transparency and control over their spending. These tools often come equipped with features such as:

1. Automated expense tracking and reporting: Eliminate manual data entry errors and reduce time spent on expense reconciliation.
2. Approval workflow automation: Establish predefined approval processes to control spending at every level of the organization.
3. Real-time budget monitoring: Offer clients immediate insights into their financial status, enabling them to make informed decisions.
4. Vendor management and procurement solutions: Improve purchasing decisions by analyzing vendor performance and identifying cost-saving opportunities.

This technology-driven approach allows advisors to proactively identify inefficiencies, prevent overspending, and recommend changes that optimize the client’s financial health. For many businesses, the insights derived from these tools are eye-opening, providing a level of clarity that wasn’t previously accessible.

Stepping into the controllership role

With the right tools and processes in place, CAS professionals are well-positioned to transition into a controllership role for their clients. Acting as a controller means taking on a more hands-on approach to financial management and decision-making, beyond simply advising on financial strategies.

Controllers are responsible for overseeing the company’s financial activities, including budgeting, financial planning, analysis, and reporting. They ensure compliance with regulations and implement financial controls to safeguard the organization’s assets. When acting as a controller, a CAS provider becomes an extension of the client’s internal team, filling a critical gap for companies that lack the resources or knowledge to perform these functions themselves.

The value of the controllership role for clients

For clients without an internal finance team, CFO, or fractional CFO, having a CAS professional step into the controllership role provides immediate value. This role goes beyond accounting and bookkeeping by taking charge of financial operations and providing strategic direction. Benefits include the following three areas:

1. Improved financial oversight: Controllers provide more robust oversight and guidance on spending; as a result, they reduce waste and improve financial efficiency.
2. Better decision support: Controllers can provide forward-looking insights that aid in strategic planning, helping businesses allocate resources more effectively.
3. Scalability and growth: Controllers can identify areas for cost reduction and reinvestment, supporting the company’s growth trajectory.

Developing a CAS practice with a controllership focus

Building a CAS practice with a focus on controllership requires the right combination of expertise, technology, and processes. Here’s a five-step approach to developing a successful practice:

1. Assess client needs: Begin by understanding the client’s current financial processes, pain points, and goals. Identify gaps in their financial management capabilities, particularly in controlling their spend.
2. Select appropriate technology: Invest in spend management tools that offer real-time financial visibility, automated workflows, and integration with accounting systems. Consider solutions such as Expensify, Bill.com, Navan, or Settle, which can support your advisory services.
3. Define service offerings: Develop a tiered service model that allows clients to choose from basic advisory services to comprehensive controllership support. This flexibility helps you cater to a wide range of client needs.
4. Implement and train: Ensure smooth implementation of the spend management solution and provide ongoing training to clients. This helps them understand the value of the technology and fosters adoption.
5. Continuous monitoring and optimization: Establish regular check-ins to review financial performance, assess the effectiveness of spend controls, and recommend adjustments as needed.

Driving success through strategic spend management

With the right approach, spend management can serve as the backbone of a thriving CAS practice. It enables firms to offer high-value advisory services and step confidently into the controllership role, filling critical gaps for clients that lack the resources or knowledge to manage their finances effectively.

By leveraging technology, providing strategic oversight, and acting as a true business partner, CAS professionals can empower clients to control spend, achieve their financial goals, and set the stage for sustainable success.