We work and live in the era of the client experience. For financial advisors, the top two measurements of success are wealth protection/growth and client satisfaction. Each interaction you have with your clients—the true bosses in this relationship—matters immensely. With every communication, you’re either reinforcing your professionalism or undermining it. Have you ever stopped to consider what message you’re sending to your clients when it comes to your billing practices?
Fees and billing are some of the most sensitive touch points within the advisor-client interaction. When your clients receive their statement of fees, direct debit notice, or invoice, there’s a moment of truth when the value of your services is assessed, and that can occur subconsciously or consciously. If there’s ever a time in a given month or quarter when investors weigh the value of your financial advice, it’s when they receive the information on the fees that you’re charging, whether that be in advance of services rendered or in arrears.
Here are five things that we highly encourage you to consider when billing your clients:
- How timely are you billing for your services? Billing too late is an indication that your back-office operations are not iron clad. Evidence of back-office operational weakness may make clients suspect that don’t have your act together—and that could cause them to question your ability to effectively manage their portfolios. By consistently and promptly delivering invoices at the start of each billing cycle, you can help to ensure timely payment and also reinforce your operational efficiency and reliability.
- How accurate are your statements or invoices? Many investors have questioned the credibility and professionalism of their financial advisor based on a simple billing snafu. Many are forgiving when such an occurrence happens for the first time, but if it happens again, doubts may surface, and these clients may suddenly be open to “just listening” to another financial advisor’s sales pitch. To avoid this scenario, avoid completing all your billing tasks by hand. Consider using automated invoicing solutions that reduce manual errors and streamline the billing process.
- How visually appealing are your statements or invoices? When it comes to the aesthetic appeal of your statement of fees or invoices, you have an opportunity to impress your clients. The client service experience is a holistic one. Don’t let the presentation of your fees take away from that holistic experience of professionalism and polish. Make sure the presentation of fees reflects the passion you have for the value you create for your clients.
- How flexible are the billing capabilities of your portfolio management platform? Your financial advisory practice is only as nimble as the technology solutions you use. Don’t get stuck without the ability to offer new products or services because your current billing capabilities are rigid and fixed and force you to jump through hoops to produce and deliver professional results. No one likes to create manual fees and statements, even when they are one-off situations—this will slow you down and increase the probability of billing mistakes.
- What fee disclosure regulations are applicable to your practice? Regardless of whether the presidential administration rolls back some of the fiduciary regulations or not, the reality is that fee disclosure is a best practice for the financial services industry. Professionally presenting your clients with the details of their monthly or quarterly fees is a must. When you present your fees, you want that presentation to reflect how good you are and how valuable your advice really is.
Providing billing statements that are visually appealing, accurate, timely, and compliant is critical for keeping your business running smoothly and getting paid on time. At Envestnet, we’re here to help. Our advisory billing software, BillFin, enables you to customize your invoices to match your branding while clearly indicating what’s being charged, limiting confusion and helping meet state-registered firm requirements.
With a proactive approach and strategic tools, you can transform what’s often considered a chore into an opportunity to showcase your value and strengthen client relationships, with every bill or statement you send.
“I have a small RIA practice, and every staff position must be utilized as efficiently as possible. BillFin is our partner for billing and invoicing. With their integration, our billing is streamlined, mistake free, and trackable for our compliance files. Cost effective, efficient, and an outstanding customer support service makes BillFin our preferred partner.”
Robert Young AIF® CRPS®
President, The Pension Group
See how Envestnet can help you with your billing technology by requesting a demo or starting a free trial of BillFin at https://www.envestnet.com/schedule-demo
