Practice Management

How Often Should I Bill My Clients?

1 min read

May 27, 2020 10:57:32 AM

AdvicePay may make it easy for your clients to make automatic recurring payments, but you’ll still need to decide what frequency -- monthly, quarterly, or semi-annual -- works best for you and your clients. While it’s certainly important to take your clients wishes into account, here are a few common cases where each frequency makes the most sense.

Monthly

Clients are paying directly from their income or cashflow
You’re working with your client to build good budgeting habits
Receiving consistent monthly revenue best prepares you for business expenses

Quarterly

Clients are paying through their brokerage account
You’re providing an additional service by offering advice on an outside 401(k)
The services you provide vary greatly month-to-month

Semi-annual

Clients prefer to pay less frequently (or are insistent they pay via check)
You wish to avoid additional regulations that can be brought on by annual billing (consider the SEC ruling that if you accept more than $500 more than six months in advance for financial services, you are triggering custody and therefore subject to additional regulations.)

What about annual billing?

While annual billing can be a simple way to package your services and the payment can coincide with annual review meetings, there is a possibility of triggering custody (described above). We made the decision not to support annual subscriptions to ensure we’re helping you remain compliant!

What We’re Seeing Among AdvicePay Users

In both 2018 and 2019, our users overwhelmingly preferred monthly subscriptions. Here’s a breakdown for each frequency:

92% of subscriptions were monthly
7% of subscriptions were quarterly
1% of subscriptions were semi-annual

Choosing an appropriate subscription frequency may seem like a small decision, but I encourage you to consider how it affects you, your clients, and your business. This decision can help clients feel more comfortable with their payments and keep you and your business thriving.