Over 50 CPAs attended the 2016 CPA Symposium on June 16th, held at Infinity Hall in Downtown Hartford. The event featured expert guest speakers and up to 6 CPE credits for CPAs, as well as networking and educational breakout sessions.
One of the most popular breakout sessions was “Adding Wealth Management Services to Your Practice” with Nobile Hinchey Private Wealth Management. The presentation outlined how successful CPAs have increased revenue and improved client retention by adding wealth management services.
CPAs Are Not Ready to Retire
Recent data shows that the average CPA firm sells for about one multiple of gross annual billings. If your average billing is $500,000, that only translates to $16,000 per year in retirement, using the rule of 4%. Most CPAs have not adequately saved for retirement and are worried about maintaining their standard of living during retirement.
A Comfortable Retirement May be Closer Than You Think
While CPAs are concerned about their future, there are effective strategies to increase their revenue today, as well as increase the sale multiple when they sell their firm in the future.
By adding wealth management services to their firm, CPAs have increased revenue by 20% and increased their sale multiple from 1X to 2-2.5X. More importantly, the revenue stream they create by managing their client’s assets continues in retirement, providing income similar to a private pension.
How Does it Work?
Let’s say your firm has $500,000 in current revenue. You may have about 100 clients, who have between $60 and $100 million in investable assets. By partnering with CPA Squared, you can work to capture half of those assets over the course of 6 years, by bringing in about $5 million in assets per year. This equates to 10 clients with $500,000 in investable assets.
The result is $30 million in total assets under management, which will provide you a revenue stream of $105,000 per year. This revenue stream is recurring, similar to a private pension, which can help fund a comfortable retirement.
What is Your Retirement Plan?
Incorporating wealth management services can improve the overall efficiency and coordination of your clients’ investments. It can also provide you with a solid retirement plan and more value when you eventually sell your firm. Are you confident in your retirement plan? If not, it may be time to consider adding wealth management services.
Get Started Now
CPA Squared is a proven, turnkey system that allows CPAs to integrate wealth management services into their practices without materially disrupting their current business. We have a successful track record of helping CPAs to better face the competition by increasing their service offerings to include wealth management.
With our proven model and step-by-step process, there is no easier way to expand your business beyond the traditional accounting services and make it stand out from the crowd. Take action today and call us at 860-659-5977 ext. 204 or email firstname.lastname@example.org.