Client advisory services and outsourced accounting are helping the Bonadio Group, a Top 50 Firm based in Rochester, New York, build its client base.
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“We’re a full back-office accounting and finance group that provides everything from day-to-day transactions to general ledger work, processing AP, month-end close reporting, budgeting and grant management,” said Gregg Genovese, who leads Bonadio’s outsource accounting and finance practice. “We utilize technology to be able to deliver those services in a cost-effective manner. We serve a lot of different industries: not-for-profits, professional services, medical groups, health care, construction and real estate types of organizations.”
The firm has an offshore unit, but most of its resources are U.S.-based. “The demand for outsourced accounting services has increased significantly since COVID,” said Genovese. “I think there’s a big element where business owners and directors understand that maybe you don’t have to be in the office to deliver accounting services and bookkeeping.”
He has seen cloud-based accounting solutions improving over the years while the talent shortage has worsened, driving the need for outsourced accounting services. “I think there’s an absolute evaporation of traditional bookkeepers that are not coming back,” said Genovese. “Business owners and people in today’s world want real-time information. They want to be able to make better decisions.”
CAS has been a major driver of business for Bonadio and other firms. According to a recent
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Artificial intelligence is helping Bonadio provide those services. “CAS services are all wrapped up into the day-to-day accounting, the AP processing, month-end close, and a lot of financial reporting elements,” said Genovese. “Being able to build key metrics for those business owners all fit under our CAS umbrella. We also have the ability today, certainly over the last 12 to 18 months, of incorporating AI and automation into our service offering — to deliver services faster, to harness the data that we’re seeing in a faster model, and to provide additional CAS-type services that are more than just the day-to-day bookkeeping. More than just budgeting, we can get into cash flow modeling, profitability improvement, expense management, strategic guidance, all those different things.”
CAS is the start of it, he added. “We’re sitting in the driver’s seat, so it allows us to see a lot of different pieces, and then we can build on them,” said Genovese. “With AI helping us to be able to get better data, we’re kind of the quarterback between advisory and compliance, and hopefully pushing some additional services and capabilities to our other service lines in our firm that can help those clients grow and develop.”
Given the various uncertainties in the economy, clients are interested in getting advisory services from their accountants.
“There’s a lot of hesitation in the marketplace with the geopolitical aspects going on, but I do think the CAS element certainly spearheads a lot of those different things,” said Genovese. “You’re starting to see more projects involving AI. A lot of business owners want to see how that can help them, whether it’s in construction, real estate and other industries that are prominent. How can AI help them? I certainly see a lot more of that kicking off versus maybe some traditional projects. We don’t really see it slow down in the markets that we are in. I think there’s a little bit more caution around it, but certainly optimism ahead.”
CAS seems to be playing a growing role in accounting firms like Bonadio. “I certainly see CAS being one of the three pillars of service lines,” said Genovese. “You’ve got tax, you’ve got assurance, and CAS is going to be the leader of the advisory side. You’re going to see CAS quarterback compliance relationships and how professional service firms continue that model. I think we’re in a great spot to continue to grow and advance our services.”
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