What can an accountant expect to earn with financial planning services?
It is estimated by the AICPA that each accountant controls approximately $100 million worth of assets for every $1 million of billing done by the firm. The ratio of 1:100 is the basis for many accountants entering the asset management arena. Assuming that an accountant did earn ½ of 1% on assets under management, he could increase his annual billing by 50%. To make it simple, if an accountant bills $1 million he will earn an additional $500,000 if he can collect $100 million under management. The National Network of Accountants has extensive experience working with accounting firms. It will take the average accounting firm 3 years to reach this goal. On the insurance side, each client for assets under management normally requires professional estate planning, which may require life insurance, long-term care, disability insurance, as well as liability insurance. These insurance products will equal the income received from the assets under management.
