Counting the dollars and cents

Counting the dollars and cents

Counting the dollars and cents Advice-only advisors spend a majority of their time either meeting with clients or putting together financial plans yet a big part of their business lies behind the scenes.

Anyone who charges a fee-for-service understands the effort that goes into invoicing clients and the potential accounts receivable cash-flow crunch that occurs when things go wrong.

 “The fee-only segment in Canada has been growing the last three or four years,” says Toronto-based personal financial trainer Avraham Byers. “Because customers are more savvy and asking for fee-only planners, you have to bill because you’re fee only.

“So, the billables have to be done in an efficient way not only for yourself but also for the client on the backend… Invoice creation takes a couple of seconds and then my client pays online with a credit card and it’s all done. I don’t have to think about it. The entire collection process is done without me.”

Efficiency is key. Indeed, as you move along in a business efficiency becomes more vital, says Byers. “I knew that my business was going to get busier as time went on and I needed to put something in place right now [to remain efficient as the business grows].”

All of this is great in theory but if the software provider’s customer service can’t solve problems quickly and painlessly, the value-add very much loses its appeal. Thankfully, says Byers, he’s never had that problem.

As advice-only advisors become a bigger part of the wealth management industry, software solutions such as this one will definitely become the norm.
1 Comments
  • Kathy Waite Your Net Worth Manager 2015-03-17 2:14:59 PM
    I bill in advance year 1 and collect a cheque at annual review meetings. Some clients use Interact. I wont use credit cards due to the % they charge , its another overhead to pass onto cleints. I use Freshbooks that sends invoices and receipts out and also a customer survey that has led to some great feed back I was able to use as testimonials.
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