Resource Site for Financial Planners in Australia
Business Owners, Education, Practice Management

Fee-For-Service Manual

Implementing a Fee-For-Service Model

The fee-for-service manual was specifically written by Cost Accounting Specialists CL Whelan and Associates for financial planners to provide practical advice on implementing a fee-for-service model within their practice. The manual has been accredited by the Financial Planning Association of Australia. Participants who read the manual and complete the exercises will earn 4.0 CPD points.

Specifically you will receive

Your financial planning practice may have already commenced the move towards a fee-for-service pricing model or is considering the move. Our fee-for-service manual will assist in making the transition a lot easier and smoother.

The price for the Manual, CD, Templates and 60 Day Phone Support is $430 + GST

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Table of Contents

Overview of Manual

Aim of manual

Objectives of manual

How to use this manual

Continuing Professional Development

About the author


The trend towards a fee-for-service approach

Advantages of implementing a fee-for-service model

Exercise 1: List other advantages

Difficulties with implementing a fee-for-service model

Exercise 2: List other difficulties

Exercise 3: How would you overcome some of the above difficulties?

Transition from Commission to Fee-for-Service

Factors that compel a successful transition

Careful planning

Transition Period

The Client Presentation

Overcoming Objections

Fee-for-Service Systems

Team Training

Financial Product Providers

Exercise 4: List any other transitional considerations

Calculating Hourly Chargeout Rates

Why calculate chargeout rates

How to treat financial planning commissions received

How to treat non-financial planning commissions received

Calculating chargeout rates for your firm

Step 1: Labour costs of employees

Step 2: Overhead costs

Step 3: Billable hours

Step 4: Required Net Profit for the next 12 months

Step 5: Allocate overheads and Net Profit and calculate hourly chargeout rates

Step 6: Check for reasonableness

How to amend hourly chargeout rates

Financial Forecast

Pricing a Service

Fixed fees

Pricing matrix

Pricing a service using the template provided

Step 1: Select team

Step 2: Detail each task

Step 3: Detail disbursement costs

Step 4: Value pricing

Exercise 5: Pricing a service

Client Engagement Letter

What is a client engagement letter?

What is included in a client engagement letter?

Recording and Monitoring Time

Options for recording and monitoring time

Methods of recording and monitoring time

Manual timesheet

Time recording software

Recording and monitoring time using the template provided

Billing Fees and Cash Collection

Billable fees

Cash collection

Key Profitability Indicators

Revenue per FTE

Revenue per owner/principal

Average hourly chargeout rate

Exercise 6: Average hourly chargeout rates

Forecast fees

Profitability of firm

Labour efficiency %

Staff ratio and direct staff ratio

Costs per $ of fees

Appendix 1 55

Manual timesheet

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