SEARCH
Inefficiency damaging planning firms
Inefficiency damaging planning firms
A new benchmarking report of accounting and financial services practices, conducted by Macquarie, has found that inefficiency is still an issue for the wealth management industry - with as many as one in seven planning firms still using manual invoicing systems.
The majority of respondents said they continue to operate from a single office, and they recognise their shortcomings when it comes to efficiency and effective use of technology, said the report.
Overall, financial services firms tend to avoid the scale that is seen in other industries, said Macquarie.
"One in four AFS firms have a work-in-progress period of 45 days or more, which has direct implications for cash flow and working capital," said the report.
"When it comes time to issue the invoices, incredibly, one in seven firms still uses a time-intensive manual system, which can be slow and expensive."
On the other hand, 40 per cent of firms have already migrated to online accounting software, said the report.
"While adding services can increase the value proposition for clients and income per client, the inability to effectively and efficiently scale is holding some firms back," said Macquarie.
When it comes to the highest-performing practices in the report, 82 per cent outsource their IT and technology support.
"Many above-average profit firms appear to come from an accounting heritage and seem to be more adept at adding services - and therefore value - to meet more of their clients' needs," said the report.
"These firms are focused on building scale, but also on building enduring relationships."
Subscribe to our Newsletter
We Translate Complicated Financial Jargon Into Easy-To-Understand Information For Australians
Your email address will be shared with nestegg and subject to our Privacy Policy
latest articles
OUR PLATFORMS AND BRANDS
- Accountants Daily
- Accounting Times
- Adviser Innovation
- Australian Aviation
- Cyber Daily
- Defence Connect
- Fintech Business
- HR Leader
- Independent Financial Adviser
- Investment Center
- Investor Daily
- Lawyers Weekly
- Money Management
- Mortgage Business
- Nestegg
- Property Buzz
- Real Estate Business
- Smart Property Investment
- SMSF Adviser
- Space Connect
- Super Review
- The Adviser
- Wellness Daily
- Which Investment Property
- World of Aviation
EVENTS AND SUMMITS
- Accountants Daily 30 Under 30 Awards
- Adviser Innovation Summit
- Australian Accounting Awards
- Australian Aviation Awards
- Australian Broking Awards
- Australian Defence Industry Awards
- Australian Law Awards
- Australian Space Awards
- Australian Space Summit
- Better Business Summit & Awards
- Corporate Counsel Summit & Awards
- Cyber Security Summit & Awards
- Defence Connect Budget Lunch
- Defence Connect DSR Summit
- Fund Manager of the Year Awards
- ifa Excellence Awards
- ifa Future Forum
- Investor Daily ESG Summit
- Lawyers Weekly 30 Under 30 Awards
- Lawyers Weekly Women in Law Forum
- Mortgage Business Awards
- New Broker Academy
- Partner of the Year Awards
- REB Awards
- Reinnovate
- SME Broker Bootcamp
- SMSF Adviser Technical Day
- Super Fund of the Year Awards
- Women in Finance Awards
- Women in Law Awards
- Accountants Daily Podcast Network
- The Adviser Podcast Network
- Australian Aviation Podcast Network
- Defence Connect Podcast Network
- HR Leader Podcast Network
- The ifa Show
- The Lawyers Weekly Show
- Mortgage Business Podcast Network
- REB Podcast Network
- Relative Return
- The Smart Property Investment Show
- Space Connect Podcast
PODCASTS
LEARNING AND EDUCATION
MOMENTUM MARKETS NETWORK
LINKS
STAY CONNECTED
Subscribe to the Adviser Innovation eNewsletter.
