Firms using managed accounts for more than three years have achieved 79% more profit per owner than firms not using managed accounts, according to research from Praemium.
The research was conducted with advisory consultancy Business Health, assessing 224 advice practices with 76 of those using managed accounts. The data assumed a $100,000 notional salary package for each working owner.
Praemium chief distribution officer, Martin Morris, said: “The quantifiable benefits of using managed accounts are incredibly compelling and those firms fully embracing managed accounts are thriving”.
Morris said it was interesting to see how client-centric and business-minded those firms who were using managed accounts for most of their client base had become.
The research also found that firms with three quarters of their client base falling under managed accounts had turned a notional profit per owner of 127% higher than non-users.
The incremental benefits of embracing managed accounts as a whole of business solution were also seen in the revenue figures.
Those firms using managed accounts for 75% of their client base had an 84% uplift in practice revenue and a 200% uplift in revenue per client.
It also showed investors were benefiting from more time in client-facing engagements with longer client meetings and more in-depth reviews, with 89% of firms using managed accounts spending 60 minutes or more in client reviews.