Cognativ Launches Digital Advisory Arm for Accounting Firm, Driving $3M in Year-One Revenue
FAST FACTS
Industry:
Accounting and Advisory Services
Specialty:
ERP implementation, digital finance transformation, and strategic advisory
Solution:
Seeded and scaled a digital practice from zero revenue to $3M+ in the first year
Users:
Firm leadership, CFO clients, digital transformation buyers
ABOUT THE PROJECT
A well-established accounting firm in Manhattan wanted to evolve. Known for their tax and audit excellence, they were losing ground to national and global competitors offering integrated digital advisory and technology implementation. The partners recognized a growing need among their clients for ERP expertise, system selection, and digital transformation guidance—but had no team, process, or roadmap to deliver it.
PROJECT IDEA
- Build a digital advisory division inside the accounting firm to meet the growing demand for tech strategy and ERP implementation.
- Design service offerings that complemented existing tax and audit work but attracted new budget and buyers.
- Drive immediate revenue while enabling long-term growth, talent development, and firm valuation.
PROJECT CHALLENGES
- No Digital Delivery Capability: The firm had no engineers, systems architects, or consultants to deliver ERP or digital strategy work.
- No Offering Definition: Leadership knew they needed a “digital practice” but hadn’t defined services, outcomes, or ideal buyers.
- Culture and Change Resistance: Some partners were skeptical—concerned that technology services would dilute the firm’s traditional reputation.
- Zero Revenue Baseline: The new practice had to create revenue from scratch, without drawing from the core tax or audit client base.
RESULTS
- $3M+ revenue in the first year of digital practice operations.
- 75–100% annual growth over three years through retained client expansion and net-new engagements.
- High-margin, IP-driven services developed and monetized using Cognativ frameworks.
- Elevated firm positioning—now seen as a full-service advisory partner vs. compliance-only provider.
BUSINESS CHALLENGES
Like many accounting firms, this one had built its reputation on technical accuracy, partner relationships, and consistency. But client needs had evolved. CFOs wanted help choosing ERPs. PE-backed firms needed integration guidance. Controllers needed workflow automation. The firm was referring this work out—or worse, losing clients entirely to firms who could offer both audit and ERP strategy.
They knew they needed a digital arm. But how to start? Who would deliver the work? How would it align with core services? And how could they avoid spending two years just “figuring it out”? That’s where Cognativ came in.
WHY CONSULTING FIRMS TRUST COGNATIV?
Cognativ helps professional service firms launch and scale high-impact digital offerings—from ERP strategy and SmartSaaS delivery to platform architecture and operations consulting. Whether you're an accounting firm, PE group, or niche consultancy, we turn your ambition into real capability—fast. Our work spans strategy, delivery, talent, and go-to-market—so your firm doesn't just offer digital services, it wins with them.
NO DIGITAL DELIVERY CAPABILITY
The firm had deep accounting experience, but zero internal ability to scope or execute technology projects.
NO OFFERING DEFINITION
“Digital” was an idea—there was no clear value proposition, pricing model, or service framework.
CULTURE AND CHANGE RESISTANCE
Some partners feared distraction or dilution from building a new, less-regulated business line.
ZERO REVENUE BASELINE
This wasn’t a spin-off—it was a greenfield business unit. No clients, no pipeline, no legacy team.
MISSED CLIENT RETENTION
Existing clients were leaving after audit—going elsewhere for systems and strategy.
COMPETITIVE PRESSURE
National firms had bundled tech services into their core—leaving smaller players behind.
THE SOLUTION
Cognativ deployed RAPID under a fractional/virtual CTO and GM model—driving strategy, delivery, and growth.
- Phase 1: Conducted a market gap analysis and internal audit to assess the firm’s brand equity, current client base, and adjacent services. Defined a core digital service bundle: ERP selection, systems architecture advisory, finance process optimization, and transformation project oversight.
- Phase 2: Cognativ delivered initial engagements using its own team while co-developing internal talent. Created sales collateral, delivery templates, value calculators, and a P&L model for the digital practice. Built visibility across the partner group through reporting and results.
- Architecture: Used Cognativ’s SmartSaaS™ and consulting IP to productize services—shortening sales cycles and improving delivery margin. Services were scoped to support both existing clients and net-new prospects.
HOW RAPID WAS USED...
"“We weren’t just building a new service—we were changing what the firm could be. RAPID let us move fast while building trust across stakeholders. It made the invisible, visible.” "
– Ali Davachi, Cognativ Founder
What is the RAPID Framework?
RAPID —Research, Analyze, Plan, Implement, Decide— is Cognativ’s transformation methodology, trusted by advisory firms and enterprises alike. Featured in RAPID Transformation: An Outcomes-Based Approach to Drive Results, RAPID enables bold moves with controlled execution—helping firms expand faster, smarter, and with less risk.
RESULTS OBTAINED
Cognativ was brought in to seed a full-fledged digital practice from scratch. Acting as both builder and operator, we created the offering, led client engagements, hired the team, and delivered results. In just 12 months, the new division generated over $3 million in net-new revenue. Over the next three years, the practice grew 75–100% annually, transforming the firm into a competitive force in mid-market ERP and finance strategy consulting.
Revenue in Year One
From zero pipeline to multi-million-dollar advisory business—driven by focus, speed, and credibility.
Annual Growth
New client wins, renewals, and upsells drove steep YoY expansion of the digital unit.
Delivery Capability
The firm now has a full tech consulting bench—serving CFOs, controllers, and portfolio ops teams.
Firm Valuation
With a digital unit contributing high-margin revenue, the firm is more competitive in M&A and partnership discussions.
IMMEDIATE BENEFITS
- Net-New Revenue: The practice created value outside of the firm’s compliance services.
- Client Retention: Existing clients now had a reason to stay—and grow—with the firm.
- Partner Buy-In: Measurable results built internal trust and alignment across service lines.
- Credibility: The firm could now bid—and win—engagements that once went to larger competitors.
ONGOING BENEFITS
- The digital team has launched new verticalized offerings (construction, nonprofit, CPG).
- Revenue contribution from the division has grown from 0% to 22% of total firm revenue.
- The firm is seen as a strategic partner—not just a tax preparer or auditor.
- Cognativ continues to advise on go-to-market, hiring, and productizing services at scale.