Being audited is stressful enough—don’t let your billing process add alarm. BillFin is committed to helping advisors calculate and collect accurate management fees from their clients while helping you understand the fee billing process. This is a continuation of a six-part series discussing the risk alert issued by the SEC last April noting six common errors found in reviewing financial advisors’ fee billing and compliance. Continue reading for details on how BillFin helps with fee rates.
Founder and Managing Member of Rapport Financial At prior RIA firms, we used Excel spreadsheets for calculating quarterly billing and generating invoices. But this is both time consuming and cumbersome with different fee schedules, clients joining your practice mid-quarter, prorated billing, etc. What I really like about BillFin is that once it’s all set up and you learn the user interface, you’re
Advisors’ Billing Practices Inconsistent with their ADV or Advisory Agreement The six part “improper practices” BillFin article series continues this month moving onto risk number two: Billing Fees in Advance or with Improper Frequency. Since the US Securities and Exchange Commission issued a risk alert on advisory fee billing and compliance back in April, Redi2 is committed to resolving these worries by explaining how BillFin handles such concerns. Issue: Advisors’ Billing Practices Inconsistent with their ADV or Advisory Agreement OCIE staff found that many advisors’ claim to bill on a quarterly basis; however, they actually ran their advisory fees on a monthly basis. They also found advisors’ billing in advance when their agreement states in arrears. BillFin Solution: Flexible Billing for Consistency While BillFin will not review your ADV before you bill, it will allow the flexibility advisors need to properly bill and maintain accuracy with their ADV and advisor agreement. Advisors can bill monthly or quarterly, forward and arrears, with override settings available for clients with different billing arrangements.