Independent financial planners bill differently than most service businesses. A single practice might charge one client an hourly rate for a one-off retirement projection, another a $3,000 flat fee for a comprehensive plan, a third a monthly retainer, and a fourth a quarterly AUM fee deducted at the custodian. Each of those needs a different invoice, and every invoice has to line up with the fee schedule you disclosed in your engagement letter and Form ADV Part 2A.

Here is a clean invoice template you can copy, along with the specific send-flow, compliance rules, and payment-rail context required for financial planners.

What should a financial planner's invoice include?

At minimum, a financial planner's invoice needs to include:

• Core line items tied to your fee model: planning fee, hourly work, retainer period, AUM fee (with the calculation shown), or flat project fee.
• Client identifiers: client name, engagement reference or agreement ID, and the period the invoice covers.
• Fee disclosure language that matches your engagement letter and Form ADV Part 2A. If your ADV says "1.00% annually, billed quarterly in arrears," the invoice math should show exactly that.
• Payment terms and accepted methods, plus a written late fee policy (for example, 1.5% per month on balances past 30 days).
• A sequential invoice number, issue date, and due date. Sequential numbering matters for your books and for any exam or audit.

Invoices must be consistent with the fee schedule disclosed in the planner's engagement letter and Form ADV Part 2A.

Here is a plain-text template you can copy into any editor:

INVOICE

[Firm Name], [Registered State/SEC], CRD #[Number]
[Firm Address]
[Email] | [Phone]

Invoice #: 2026-0142
Issue Date: [Date]
Due Date: [Date]
Billing Period: [Start] to [End]

Bill To:
[Client Name]
[Client Address]
Engagement: [Agreement ID or Date Signed]

--------------------------------------------------------
Description                              Amount
--------------------------------------------------------
Comprehensive financial planning,
flat fee per engagement letter dated
[Date]                                   $ 3,000.00

  OR

Ongoing planning retainer,
Q2 2026 (Apr 1 to Jun 30)                $ 1,500.00

  OR

Investment advisory fee, Q2 2026
Average daily balance: $ 620,450.00
Annual rate: 1.00% (0.25% quarterly)     $ 1,551.13

  OR

Hourly planning services
6.5 hours @ $ 275/hr                     $ 1,787.50
--------------------------------------------------------
Subtotal                                 $ [Amount]
Sales tax (if applicable)                $ [Amount]
TOTAL DUE                                $ [Amount]
--------------------------------------------------------

Payment methods: ACH (preferred), card, or wire
Payment instructions: [ACH details / pay link / wire info]

Terms: Net 15. A late fee of 1.5% per month applies
to balances outstanding after 30 days.

Notes: [Reference any deliverables, meetings, or
services covered during the billing period.]

Fee disclosure: This invoice is billed in accordance
with the fee schedule disclosed in our engagement
letter and Form ADV Part 2A dated [Date].

If you use an AI tool to draft a spreadsheet version, verify every formula, disclosure line, and client detail before sending the invoice. Ask it to generate a Google Sheet with the AUM formula (average balance × annual rate ÷ 4) and an auto-calculated total, then request the same file as Excel and a fillable PDF. Check the math against a manual calculation on at least one real client before you send anything.

How do different financial planner fee models get invoiced?

Fee-only financial planners commonly bill through hourly rates, flat project fees, ongoing retainers, AUM percentages, or monthly subscriptions, and the invoice format should match the model.

Hourly billing

Track time in whatever tool you already use (a spreadsheet works). On the invoice, show the date, a one-line description of the work, hours, and rate. Round to the nearest quarter-hour and keep the raw time entries in the client file in case the client asks or a regulator does.

Flat-fee planning

Two common structures: paid-in-full at engagement, or milestone billing (for example, 50% at engagement letter signing, 50% at plan delivery). Milestone billing reduces client friction on a $5,000+ engagement and gives you working capital. State the milestones on the invoice so the client sees what they're paying for.

Ongoing retainer

Monthly or quarterly, invoiced on a fixed cadence. For clients who start mid-cycle, prorate: if a client signs on May 15 for a $1,500/quarter retainer, the first invoice covers 47 of 91 days, or $775.

AUM fees

You have two paths. Deduct the fee directly from the client's account at the custodian (Schwab, Fidelity, Altruist, and similar all support this), or invoice the client and have them pay from a bank account. Whichever you choose, the invoice or fee notice must show the period, the account value used for the calculation, the annual rate, and the resulting fee. Use the account-value method stated in the advisory agreement, such as average daily balance, and show that calculation on the invoice or fee notice. AUM fees can either be deducted directly from client accounts held at a custodian or invoiced directly to the client, and the method used must match what is disclosed in the client's advisory agreement and Form ADV Part 2A.

Subscription/monthly planning fees

Common for younger accumulator clients. Think $150 to $300 per month, sometimes with a one-time onboarding fee. Bill via recurring ACH so the client doesn't have to think about it and you don't have to chase card declines.

Where can financial planners get a free invoice template?

The template above includes:

• Header block with firm name, CRD number, and contact info
• Sequential invoice number, issue date, due date, and billing period
• Client and engagement identifiers
• Line-item area with variants for flat fee, retainer, AUM, and hourly
• Subtotal, tax line, and total
• Payment methods and written late fee policy
• ADV disclosure line

To customize:

• Hourly work: delete the other variants and add a column for hours and rate.
• Flat fee: keep only the flat-fee line; add a milestone note if you're billing in stages.
• Retainer: state the period clearly (e.g., "Q2 2026, Apr 1 to Jun 30").
• AUM: show the calculation. Auditors and clients both want to see how you got to the number.

If you're an SEC- or state-registered adviser, put your CRD number in the header and reference the ADV date on the disclosure line so the invoice ties back to the current filing.

How to Send an Invoice to a Financial Planning Client (Step by Step)

1. Reference the signed engagement letter and disclosed fee schedule. Pull the executed agreement, confirm the fee, and mirror the language on the invoice.
2. Itemize services delivered during the billing period. For flat and retainer engagements, list the meetings, deliverables, or milestones the fee covers. This helps clients understand what the invoice covers and reduces avoidable payment questions.
3. Offer a payment method the client already expects: ACH for recurring fees, card for one-time planning fees, or wire for large flat-fee engagements.
4. Send via a secure channel and save a copy in the client file. Use encrypted email or a client portal, not a plain PDF attachment on a personal Gmail thread. Save the PDF and the send confirmation.
5. Reconcile paid invoices to your books weekly. Match the deposit in your business checking account to the invoice number, mark it paid, and move on.

What payment methods should financial planners accept?

Different rails have different tradeoffs. Match the rail to the engagement.

ACH is commonly used for recurring retainer and subscription fees and typically settles in 1 to 3 business days under standard Nacha rules. It's free to the client on most bank accounts. Best for monthly retainers, quarterly retainers, and subscription planning fees where you don't need the money the same day.

Card payments are convenient for one-time planning fees. Clients can pay from the invoice email without asking you for separate payment instructions. For example, Stripe lists online card pricing at about 2.9% plus a fixed per-transaction fee as of its current pricing page; check your processor's current pricing before deciding whether to accept cards for larger fees.

Wires are the right choice for large flat-fee engagements ($10,000+) where you want same-day settlement. Domestic wire transfers in the United States can settle the same day through the Federal Reserve's Fedwire Funds Service. Banks often charge senders for outgoing wires, so clients should check their business wire transfer fee schedule.

Custodian deduction for AUM fees. Rather than invoicing the client, you submit a fee schedule to the custodian and they deduct the fee from the account at the end of each billing period. Custodian deduction can reduce manual payment collection, but you still need to send a fee notice showing the calculation, and the client's advisory agreement must authorize the deduction.

Whichever methods you accept, say so on the engagement letter and the invoice, and tell the client what each option will cost them.

What records do financial planners need to keep for invoices?

SEC-registered investment advisers must retain fee calculations, invoices, and related books and records for at least five years under Rule 204-2 of the Investment Advisers Act, with the first two years in an easily accessible location. State-registered advisers should check their state rule. Most mirror the SEC's five-year standard, but a few require longer.

Practical implications:

• Save every invoice as a PDF in the client's electronic file, not just in your sent-mail folder.
• Keep the underlying fee calculation for AUM invoices: the account value snapshot, the period, and the math. A regulator wants to see how you got to $1,551.13, not just the invoice.
• Match every invoice to the fee schedule in your current Form ADV Part 2A. If the ADV changed mid-year, keep the version that was in effect on the billing date.

1099-NEC. When a business client pays an unincorporated planner $600 or more in a calendar year for services, the client generally must issue a Form 1099-NEC. That means small-business clients paying you for planning services will typically send you a 1099 in January. If you retain contractors (a paraplanner, a virtual assistant), the same $600 threshold applies from your side.

Sales tax. Sales-tax treatment of financial planning and investment advisory fees varies by state. Verify the rule with a CPA licensed in the state where you deliver services before adding tax to an invoice.

Estimated taxes.

Self-employed planners may need to make quarterly estimated tax payments. Some businesses set aside a portion of each paid invoice for taxes, but the right percentage depends on income, deductions, state taxes, and filing status. For a deeper cut on what's deductible against that income, see our guide to Independent Financial Planners business expenses.

What invoicing mistakes should financial planners avoid?

• Vague line items that don't tie back to the engagement letter. "Consulting services" isn't enough; "Comprehensive financial plan per engagement dated 3/12/2026" is.
• Missing fee calculation detail on AUM invoices. Show the period, the account value or average balance, the annual rate, and the resulting fee. Every time.
• Inconsistent billing cadence. If the agreement says quarterly, bill on the same day each quarter. Clients notice.
• No written late payment policy. Put it on the engagement letter and the invoice, then apply it consistently.
• Storing invoices only in email. Email is not a document management system. Save PDFs to the client file.

How can financial planners send invoices from Novo?

Novo is a fintech that provides small-business banking solutions built for solo practices and small firms. For an independent financial planner, that means you can send invoices with a pay-by-card link, receive ACH and wire payments, and reconcile against your books without paying separately for a business checking account and an invoicing tool.

Specifically:

• $0 monthly fee, $0 minimum balance. Incoming wires and ACH transfers are free. Outgoing wires are priced separately.
• Send invoices with a pay-by-card link directly from your Novo account. Confirm the current card-payment setup before stating whether a separate processor account or login is required.
• Integrations with QuickBooks and Xero for reconciliation, plus Stripe if you also accept card payments elsewhere. Shopify is supported for planners who sell a course, workbook, or other product alongside their practice.
• Novo Reserves is a budgeting feature within your Novo checking account that lets you earmark a portion of your balance (e.g., 30%) toward estimated taxes. It works similarly to business sub-accounts for tax and payroll bucketing.

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Honest tradeoff: Novo does not accept cash deposits. That may not affect planners who collect fees by ACH, card, wire, or check, but cash-paying clients will need another payment option.

What questions do financial planners ask about invoicing?

Can I invoice a client directly if I also deduct AUM fees from custody?

Yes. Many firms direct-invoice a one-time financial planning fee and deduct the ongoing AUM fee at the custodian. What matters is that each fee is disclosed in the engagement letter and Form ADV Part 2A, and that the invoice or fee notice for each shows the calculation.

What should a fee-only planner's invoice look like?

Firm name and CRD number, sequential invoice number, issue and due dates, billing period, client and engagement identifiers, a line item that mirrors the fee model (flat, hourly, retainer, AUM, or subscription), payment methods, a written late fee policy, and a reference to the current Form ADV Part 2A. The template above covers all of it.

How long do I need to keep invoices as an RIA?

At least five years under SEC Rule 204-2, with the first two years in an easily accessible location. Keep the fee calculations, not just the invoices themselves. State-registered advisers should confirm their state rule, but most follow the same five-year standard.

Do I need to charge sales tax on financial planning fees?

Sales-tax treatment of financial planning and investment advisory fees varies by state. Check with a CPA licensed in your state before you start invoicing.

When should I send a 1099 or receive one as a planner?

If a business client (not an individual) pays your unincorporated firm $600 or more in a calendar year for services, they generally must issue you a Form 1099-NEC. If you pay a paraplanner, virtual assistant, or bookkeeper $600 or more in a year, your firm is generally responsible for issuing the 1099.

Can I use one invoice for multiple engagements with the same client?

You can, but don't. Separate invoices per engagement type (planning fee vs. AUM fee) make your recordkeeping cleaner and make it easier to tie each invoice back to the specific fee disclosure in your ADV.

Disclosures

Novo Platform Inc. ("Novo") is a fintech, not a bank. Banking services provided by Middlesex Federal Savings, F.A., Member FDIC. The Novo Debit Card is issued by Middlesex Federal Savings, F.A., and the Novo Business Credit Card is issued by Continental Bank, pursuant to licenses from Mastercard International Incorporated. Mastercard is a registered trademark of Mastercard International Incorporated and can be used everywhere Mastercard is accepted. The Novo Merchant Cash Advance is offered by Novo Funding LLC. Your eligibility for Novo products and services is subject to final Novo determination.

Deposits are insured for up to $250,000 through our partner bank, Middlesex Federal Savings, Member FDIC.

Novo Reserves is not a separate account. Novo Reserves is a budgeting feature within the Novo checking account. All funds within Reserves remain a part of the overall balance of the Novo checking account.

Novo Platform Inc. ("Novo") strives to provide accurate information but cannot guarantee that this content is correct, complete, or up-to-date. This page is for informational purposes only and is not financial or legal advice nor an endorsement of any third-party products or services. All products and services are presented without warranty. Novo Platform Inc. does not provide legal, tax, or accounting advice; consult a qualified professional for guidance specific to your situation.