In a positive end to what many advisers have called a frustrating year, a survey conducted by Macquarie has highlighted that 83% of advisers expect increased profits within the next 12 months.
The survey titled ‘The Macquarie Practice Consulting 2013 Financial Planning Best Practice Benchmarking Survey’ has indicated that practices offering financial planning only or financial planning and accounting only are the most positive with 32% of the firms offering financial planning exclusively and 39% of the firms offering just financial planning and accounting stated they expect at least a 20 per cent increase in the next financial year.
The survey was collated from information from 226 financial planning practices in October 2013 covering areas as diverse as: business structure, financial management, general practice and confidence. Fiona Mackenzie Macquarie’s head of practice consulting said of the survey that this year has already highlighted steady growth in revenue and gross profit in advice practices; showing a 15 per cent increase in average revenue since the last survey as well as a 45 per cent increase in average operating profit. Mackenzie said that, “expenses appear to have been well managed, which can contribute to driving profit improvements. From the survey, we can see that many appear to be making real efforts to refine their client base and increase the focus on active clients, and this tends to improve the profitability per client.”