AdvicePay Financial Advisor Community Blog

Why Can’t I Just Use Quickbooks or PaySimple?

May 15, 2018 By Alan Moore, MS, CFP®
Alan Moore, MS, CFP®

why not use paysimple or quickbooksThere are many payment processor options out there, and when evaluating the best solution for your business, the differences aren’t always immediately apparent. As you compare AdvicePay with other systems, you may notice that some have lower monthly fees or transaction costs. However, while they all functionally can move money from point A to point B, there are distinct differences to consider.

One of the main advantages of AdvicePay is that it was designed specifically for financial advisors. Other payment processors will be unlikely to meet your requirements as a financial advisor, or even fail to be permissible for use by financial advisors due to state and SEC regulations.

Why Not Quickbooks?

Quickbooks is one example of a well-known service you might consider. Their bookkeeping services are definitely useful, but you can’t use their merchant account services to transfer money for your clients without facing a host of problems. Quickbooks’ Terms of Services agreement expressly states that financial advisors may not use their Intuit merchant account. Using Quickbooks in that capacity creates the potential for you to be kicked off the Quickbooks system and risk having your account deleted even if you have been a long-time user.

The other issue with Quickbooks is that their system is not nearly as flexible as AdvicePay and doesn’t have the custom features that AdvicePay offers — features that were built specifically for financial advisors, such as custom upfront payments and subscription payments built into the same workflow. These are standard features that will save you time.

Another issue with Quickbooks is that it triggers custody because you are able to edit subscription amounts without the customer’s permission. Triggering custody means the potential for a time-consuming and expensive custody audit. AdvicePay protects you from this risk; whenever you change a subscription amount, the client has to approve it before it becomes active.

What’s Wrong with PaySimple?

PaySimple is another example of a payment processor that some financial advisors may consider. Like Quickbooks, there are issues around triggering custody with their system. PaySimple will trigger custody when clients’ banking information is stored in the system because of the way permissions are enabled. Your ability to change values and invoice at will means you could face a custody audit to confirm you haven’t stolen money from your clients, which negates any and all the benefits of the merchant processing capabilities.

One of the other main issues with this system is the inconvenience of the platform. For example, the sign-up process can take up to 7-10 days, which is far too long for any organization trying to onboard clients quickly and make agile decisions. Additionally, as a financial advisor you will have difficulties getting qualified to transact with credit cards. Conversely, signing up for AdvicePay only takes about five minutes and much of the information required to collect is done automatically. It's a much simpler sign-up process.

Another issue with PaySimple is that their interface is really antiquated and not user-friendly.  It’s challenging to use and doesn’t provide a client portal with access to useful features, such as the ability for the client to cancel their own subscriptions or see their previous invoices. Also, basic features like updating banking information are quite complicated and arduous in PaySimple.  It involves printing a form, filling it out and faxing it. AdvicePay, however, provides a client portal and easily updates information, making for a much more efficient and streamlined user experience.

AdvicePay: The Comprehensive Solution for Financial Advisors

AdvicePay was designed expressly for financial advisors and has all the features necessary for an advisor to carry on their business with minimal interruptions. AdvicePay is and will remain compliant for your clients. Furthermore, the enterprise version of AdvicePay allows multiple advisors with various controls and user permissions to be managed under one profile, which is convenient and more efficient for larger firms.  

AdvicePay’s design, interface, and compliance features make it the best payment platform available for financial advisors.


Posted by Alan Moore, MS, CFP®

When life hands you limes, make margaritas. Alan’s entrepreneur journey began in 2012 after he was fired from his job as a financial planner and decided to start his own business. With his undergrad and M.S. in Family Financial Planning, Alan quickly put his business-building smarts and experience to work in helping other advisors start, run, and grow their own financial planning firms to serve NexGen clients. In 2016, he launched AdvicePay with partner Michael Kitces to operationalize the fee-for-service business model with technology that makes sense for the specific needs of financial planners. When he’s not starting companies, Alan lives openly as a self-proclaimed CrossFit junkie and dedicated snowboarder, a skill he is already passing along to his four-year-old son.

Topics: Compliance