David Clatworthy

The role of the financial adviser is changing as a result of increased client expectations and technological advances, according to Macquarie’s 2018 Accounting and Financial Services Benchmarking Report.

The second bi-annual Macquarie AFS Benchmarking Report surveyed 396 accounting and financial services firms to identify the key industry trends in a changing market.

David Clatworthy, a Division Director for Macquarie Wealth Management, said accounting and financial services firms need to evolve more quickly than ever before in order to deliver the level of service clients expect in a market that is rapidly evolving. Firms are doing this through engaging new technologies and systems, and personalising the client experience.

“Almost all firms surveyed believe the role of the adviser is changing,” Mr Clatworthy said.

“The findings demonstrate that personalising the client experience is key for firms wishing to differentiate themselves in the market, with clients expecting high quality relationships with their advisers that are tailored to their individual needs.”

Mr Clatworthy said the 2018 AFS Benchmarking Report showed high performing firms are investing in systems which give them a comprehensive view of the client, enabling advisers to highlight gaps in services so these can be proactively bridged and the client relationship strengthened.

Macquarie’s 2018 AFS Benchmarking Report also shows the industry has begun to form an idea of what the firm of the future will look like.

“Two-thirds of firms surveyed believe that a client centric approach is the future and will be underpinned by either a key relationship manager or by increasing the proportion of client-facing staff,” said Mr Clatworthy.

“Our findings suggest that the adviser of the future will have strong interpersonal skills supported by technology and data-driven insights, helping to drive truly meaningful client interactions.”

The report also showed that 78% of high performing firms believe that enhanced efficiencies through better use of technology is one of the most effective strategies to improve profitability in the current market.

“While many firms recognise the increasing value of technology to improve efficiencies and profits, the percentage of firms planning to invest in a new system in the next 12 months remains surprisingly low,” Mr Clatworthy said.

The AFS Benchmarking Report is based on an in-depth survey of 396 accounting and financial advice firms, conducted in December 2017 by Macquarie’s Banking and Financial Services Group.

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David Clatworthy

Macquarie has announced the launch of its industry-leading 2017/18 Accounting and Financial Services Benchmarking Survey and is calling on financial planning and accounting firms to participate.

The second biannual Accounting and Financial Services Benchmarking Survey is designed to uncover the latest industry trends to help firms benchmark their performance against leaders and identify opportunities for growth.

David Clatworthy, a Division Director in Macquarie’s Wealth Management division, said the survey will provide insights on the key themes and emerging trends across the accounting and financial services industries, including the impact of technology and the evolving role of the adviser.

“In a rapidly evolving market, the survey results will allow practices to gain an understanding of how their business is performing and identify focus areas for the future to differentiate themselves against their peers,” Mr Clatworthy said.

The 2017/18 Macquarie Accounting and Financial Services Benchmarking Survey will take approximately 45 minutes for firms to complete, with the aggregate results expected to be released in March 2018.

By taking part in this survey, participants will be one of the first to receive a copy of the 2017/18 Macquarie Accounting and Financial Services Benchmarking Report, as well as go in the draw to win one of five Google Home prizes.

The survey is open until 1 December 2017 and should be completed by the firm’s partner, director or owner. It will be conducted by Confirmit, on behalf of Macquarie.

Participate in the survey.

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David Clatworthy

High performing accounting and financial services firms are driving growth and profitability by leveraging the capabilities and existing client base within their business, according to new data released from Macquarie’s Accounting and Financial Services (AFS) Benchmarking Report.

Macquarie’s survey of 355 small to mid tier accounting and financial services firms nationally identified key industry trends and insights in the increasingly converging market.

David Clatworthy, Division Director for Macquarie Wealth Management, said new research from the report looked specifically at the key trends amongst firms earning above average profits and how they approach their business.

“High performing firms are significantly more effective at driving growth and profitability through leveraging the capabilities within their business, and adding value for the client base they already service. High performers also differentiate themselves by their focus on improving the technologies they use and retaining quality staff,” Mr Clatworthy said.

“Nearly 80 per cent of high performing businesses say adding value to their existing client base is the most effective profitability lever they have in the current market. In comparison, firms achieving below average profit are most likely to look outside their business for profitability growth, with 50 per cent reporting new client acquisition as a key profitability driver, compared to 32 per cent of high performers.

“By doing more with the resources and client base they already have inside their business for growth, high performing firms are focussing on creating value that will both drive referrals from existing clients and grow revenue per client. These practices have spent more time understanding their clients’ needs and in turn, have introduced additional services, resulting in a higher proportion of multidisciplinary clients.

“This ultimately means high performers are leveraging the factors they have greater control over, allowing them to provide better value to clients and flexibility to adapt to and make the most of market conditions.”

The report found high profit firms also put a far greater emphasis on retaining quality staff, with 57 per cent rating it as one of their key strategies for profit performance, compared to 35 per cent of businesses with below average profit.

While all firms reported that the service and expertise they deliver are what clients value most, higher performing businesses believed their clients were also likely to focus on the expertise and capability side of the equation.

“In an evolving industry, it will be critical for businesses of all shapes and sizes to position themselves strongly for growth. Accounting and financial services firms need to look at ways to ensure they are continuously innovating to meet the opportunities and challenges ahead,” Mr Clatworthy concluded.

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David Clatworthy

Spending enough time with family, prioritising personal goals and managing stress and fatigue are the most challenging aspects of managing work-life balance for accounting and financial services professionals, according to industry research by Macquarie.

Macquarie’s 2015/16 Accounting and Financial Services Benchmarking Report (AFS) recently surveyed 355 small to mid tier accounting and financial services firms nationally, looking beyond business performance drivers to consider what principals and partners are striving for on a personal level.

David Clatworthy, Division Director for Macquarie Wealth Management said that while confidence remains high among accounting and financial services firms, with 83 per cent positive about their future business prospects, challenges in balancing work and personal life are a common theme for many.

“Finding time to prioritise their own goals while also developing their business is the biggest personal challenge for accounting and financial services principals and partners, regardless of the size of their firm,” Mr Clatworthy said.

“Work-life challenges also centre on spending quality time with family, particularly for principals and partners of larger firms. For example, 45 per cent of leaders at firms earning more than $2 million per year in revenue reported not having enough time with their family as a major concern, compared to 35 per cent of smaller businesses.

“Effectively managing stress and fatigue at work and home is also a key concern for principals and partners, particularly for those leading smaller firms.”

Mr Clatworthy said that while work-life balance was still elusive for the majority of principals and partners across the industry, those leading the highest performing firms more actively utilised the resources at their disposal to help manage competing priorities.

“Owners of larger firms reported having more challenges in freeing up their time, with 48 per cent saying they don’t have enough time to do what they want to do for the business. This was also a concern for 44 per cent of smaller firms, suggesting greater business efficiencies and internal cohesion is needed to help win back more personal time.

“Indecision is a leading obstacle in the pursuit of work-life balance for smaller firms, which may be a reflection of the increasing complexities which come with a growing business.

“Ultimately, the principals and partners of the highest performing firms are less likely to see work-life balance and fatigue as solely personal challenges, and are more willing to leverage their firm’s resources in order to find more time for the things that matter – time with family, for themselves and on their business,” Mr Clatworthy concluded.

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David Clatworthy

Macquarie’s inaugural 2015/16 Accounting and Financial Services (AFS) Benchmarking Report has revealed that despite changing industry conditions, accounting and financial services firms are performing strongly, remain optimistic about the future and are clearly defining what drives value in their business.

Macquarie recently conducted a survey of 355 small to mid tier accounting and financial services firms nationally to identify key industry trends and insights into the increasingly converging market.

David Clatworthy, Division Director for Macquarie Wealth Management, said accounting and financial services businesses are evolving to meet changing regulatory and client expectations, which is leading to strong profits and low client turnover.

“Customer satisfaction, new technologies and the retention of key staff are critical for driving profitability,” Mr Clatworthy said.

“An overwhelming 91 per cent of firms said greater client referrals and improved income per client were the main revenue drivers for their business, while 79 per cent of high profit firms said adding value to existing customers is the most effective strategy to improve profitability.”

Mr Clatworthy said the lines of segmentation between financial services and accounting firms are shifting, increasing the need for principals and partners to look at what is driving value for their business.

“We’re seeing a variation on how firms believe they can best service clients and drive revenue from adjacent services. For some, this means looking to business models that embrace a more holistic advice offering, while others are choosing to specialise in order to set themselves apart,” Mr Clatworthy said.

“A long term focus means many firms are embracing a multidisciplinary business model, and adding new services to increase their ability to provide better value to their clients.

“Investing in quality staff is also essential to building a stronger client value proposition and relationship, with almost half of respondents (44 per cent) saying the retention of quality key staff is an important strategy for driving profitability.”

Looking to the future, confidence remains high among accounting and financial services firms, with 83 per cent reporting they are positive about their business’ prospects.

“Over the next 12 months, all businesses say they will focus on attracting new, ideal clients. While smaller firms are focused on regulatory changes and are three times more likely to feel impacted by changes in this space, 41 per cent of larger firms say integrating technology is a key challenge and will look to better use it to boost efficiency and attract and retain staff.

“Successful accounting and financial services firms are seeing the opportunity in an evolving market, clearly defining their value proposition to clients and adjusting their business model accordingly,” Mr Clatworthy concluded.

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David Clatworthy

Macquarie has announced the launch of its inaugural Macquarie Accounting and Financial Services benchmarking survey and is calling on financial planning and accounting firms to participate.

The new survey aims to provide industry professionals with compelling insights into the increasingly converging market, equipping firms with practical insights and a comprehensive view of industry trends.

David Clatworthy, a Division Director in Macquarie’s Wealth Management division, said the survey allows practices to benchmark themselves against their peers on a range of measures, such as fees, remuneration structure and retention strategies.

“The survey will closely look at key themes and emerging trends across the accounting and financial services industries, such as leading drivers of business performance, how clients are being charged, remuneration and staff retention,” Mr Clatworthy said.

“In an evolving industry, the results will provide professionals with compelling insights to help them take charge of their next business opportunity, gaining an understanding of the leading practices in the industry and where they see the future direction of the market to help shape and drive business strategies.”

The 2015 Macquarie Accounting and Financial Services benchmarking survey will take approximately 30 minutes to complete, with the aggregate results expected to be released in March 2016.

By taking part in this survey, participants will receive a copy of the 2015 Macquarie Accounting and Financial services benchmarking report, as well as be automatically entered into a draw to win one of five Myer Gift Cards valued at $300.[1]

The survey is open until 7 December 2015 and should be completed by the practice’s Principal, Equity Holder, Managing Partner, CEO, Director or Partner. It will be conducted by Market Research solutions provider, Confirmit Australia Pty Ltd, on behalf of Macquarie.

Click here to participate in the survey or for more information.

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[1] Terms and conditions apply to this draw and can be viewed by clicking here.

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