With contracting assets under management, fund management firms, fund managers and hedge funds alike have been quick to extend performance fee schedules and introduce innovative, complex products to maintain client interest. Yet, they’re missing the simplest
of tricks - automation of fee billing - as many of these potential fees remain under billed or are not invoiced at all as firms still insist on depending on inadequate manual processes to generate client invoices and perform fee calculations.
We know organisations using spreadsheets often struggle to cope with the additional overhead related to performance calculations. As a result, firms have had to devote extra resources to ensure they correctly bill clients for services performed, often increasing
the length and cost of the billing cycle. Also with the calculations done in Excel, these complex fees are difficult to invoice. In this climate, no client will pay for a service they can’t understand and more importantly, there is no room for under billing,
over billing or simply not billing at all.
Automated fee billing and revenue management is a really simple way for firms to prevent revenue leakage and can play a vital role in introducing new products to the market faster, improve cashflow and deliver results that go straight to the bottom line.