Professional Employer Organizations and Client Advisory Services: Smart Strategies for Scalable Small or Midsize Business Growth

Professional employer organizations (PEOs) and client advisory services (CAS) aren’t just for back-office efficiency—they’re strategic tools that help small or midsize businesses (SMBs) weather disruption, protect margins, and stay focused on growth. Here’s what that looks like in practice. 

What Happens When SMBs Let Go of the Back Office—and Gain Control Case Example: CAS. Tariffs. Tension. Turnaround. 

In 2023, a shipping brokerage launched with a clear priority: focus on selling, not back-office operations. They partnered with EisnerAmper for CAS and outsourced payroll to stay lean and nimble. 

Everything was on track—until unexpected international tariff changes hit the shipping industry hard. While the founders were working overtime to keep sales afloat, unpaid receivables began to pile up. EisnerAmper’s CAS team spotted the problem early, leveraging real-time data to deliver weekly cash flow forecasts and guide proactive course correction. 

To further stabilize operations, the team introduced Justworks. A benefits review and switch saved the client over $60K annually, providing both immediate relief and long-term efficiency. 

Despite ongoing market volatility, the business has kept margins in check and stayed aligned with its core mission—thanks to the right support at the right time. 

Zooming Out to Understand the SMB Challenge 

Operating and growing an SMB is a relentless challenge. Each day brings a new set of demands, from managing employees to keeping up with compliance, from tracking cash flow to finding and retaining customers. The most precious resource for any SMB owner or management team is not capital, but time, energy, and focus. Peter Drucker’s famous words ring truer than ever: 

“The purpose of a business is to create a customer. The business enterprise has two—and only two—basic functions: marketing and innovation.” 

A powerful reminder that SMBs thrive when they focus on what sets them apart—their products, services, and customer relationships. But how can a business keep its attention on these core activities when so much else demands attention? 

The answer for a growing number of SMBs is the strategic use of PEOs and CAS. When combined, these two platforms can drive efficiency, reduce costs, and free up leadership to focus on what matters most. 

What Is a PEO? 

A PEO is much more than an outsourced payroll service. At its core, a PEO acts as a co-employer, partnering with your business to handle a wide array of HR functions: 

• Payroll processing and tax compliance 
• Employee benefits administration 
• Workers’ compensation and risk management 
• HR policy development and compliance 
• Employee onboarding and training 

By pooling employees from many client companies, a PEO can offer Fortune 500-level benefits at rates that are typically out of reach for small businesses. This not only saves money but also helps SMBs attract and retain top talent in a competitive labor market. 

The bottom line: Businesses that use PEOs grow 7–9% faster, have 10–14% lower employee turnover, and are 50% less likely to go out of business than those that do not. 

What Is CAS? 

CAS—sometimes called cloud accounting services, outsourced accounting, fractional controllership, or fractional CFO—take a similar approach to the financial side of your business. 

CAS is not just bookkeeping. Instead, it is a platform-based, cloud-driven service that provides: 

• Bookkeeping 
• Tax preparation and compliance 
• Financial reporting and analytics 
• Fractional controllership and CFO-level guidance 
• Strategic financial planning and cash flow management 

With CAS, SMBs gain access to CPA-level expertise and advanced financial technology without the cost of hiring a full in-house team. This means real-time financial data, expert advice, and scalable solutions that grow with your business. 

CAS practices have evolved from simple outsourced payroll services to sophisticated platforms that integrate seamlessly with your operations. They offer the flexibility to scale up or down as needed, and they bring industry-specific knowledge that can be a game-changer for decision-making. 

Why This Combination Is a Game Changer 

1. Unlocks Focus and Expertise 

The most valuable use of leadership’s time is on innovation and customer creation, not on wrestling with compliance paperwork or payroll errors. 

• Manage compliance—from HR regulations to tax filings—so you can keep your focus where it belongs. 
• Access to real-time, accurate data enables quick, informed decision-making. Both PEOs and CAS provide dashboards and reports that put critical information at your fingertips. 
• These providers serve hundreds of businesses, giving them a wide and deep perspective on best practices, pitfalls, and opportunities. They’ve “been there, done that” and can offer insights that would take years for an SMB to develop internally. 

2. Simplifies Operations 

Growth brings complexity—more employees, more regulations, and more technology needs. But complexity can be the enemy of agility. That is, unless you have a PEO and CAS on board, in which case: 

• There’s no need to hire for non-core functions. 
• Technology is handled for you with investments in the latest HR and accounting platforms. 
• Services scale with your business, whether you’re expanding locations or entering new markets. 

3. Cost Savings and Financial Clarity 

Hiring and maintaining in-house HR and accounting teams is expensive. Consider: 

• PEOs provide access to group health insurance and other benefits at rates far below what most SMBs could negotiate alone. 
• CAS eliminates the need for full-time hires, offering fractional expertise as needed. 
• Avoid costly mistakes—from payroll errors to missed tax deadlines. 

Real-World Impact, Summarized 

According to the National Association of Professional Employer Organizations (NAPEO): 

• SMBs using PEOs grow 7–9% faster. 
• Employee turnover is 10–14% lower. 
• These businesses are 50% less likely to go out of business. 

Why? Because these businesses offer better benefits, stay focused on their core, and respond quickly to opportunities and challenges. 

The Power of Delegation 

Drucker’s philosophy is clear: Delegate non-core activities to specialists so you can focus on what makes your business unique. PEOs and CAS are the modern, tech-enabled way to do just that. 

Key advantages include: 

• More time for leadership to focus on growth and innovation. 
• Access to expert talent and modern tech without a full-time headcount. 
• Reduced risk and improved compliance. 
• Scalable support that grows with your business. 
• Clear, real-time financial data. 
• Better employee benefits and retention. 
• Lower operational costs and fewer costly errors. 

What to Look for in a PEO and CAS Partner 

Not all providers are created equal. When considering a PEO or CAS, look for: 

• Proven track record and industry expertise. 
• Transparent pricing and service agreements. 
• Real-time access to data through robust platforms. 
• Customizable solutions that fit your business. 
• Strong client references. 

Ask about their compliance approach, tech stack, and how they support companies through change or crisis. 

Why Waiting to Find a PEO and CAS Partner Is Risky 

Regulations are shifting. Technology is evolving. Talent is harder to retain. The SMBs that succeed will focus on their core mission and outsource everything else. 

PEOs and CAS are not just cost-saving measures—they are growth accelerators. They enable SMBs to punch above weight, offering the benefits, expertise, and agility of much larger organizations. 

If you’re spending more time on paperwork than on customers, or if your growth is being held back by operational headaches, it’s time to consider this combination. Free up your focus. Invest in your strengths. And let the experts handle the rest.  

Our CAS Team 

The EisnerAmper CAS team often partners with PEO Justworks to deliver this powerful combination of outsourced services to your team. Reach out to us to get started.