Billing, fee splits, payouts, rebalancing, tax-loss harvesting, and trade error tracking all run on one connected layer. Operations handles exceptions, not the work itself. 20 to 50 bps of additional tax alpha per client.
Billing, Fee Splits, and Rebalancing Each Run on Their Own Manual Schedule
tax alpha
The Problem
Billing at most RIAs is a multi-system manual workflow. Quarterly fee calculation pulls from the portfolio management system, applies a fee schedule that lives in a spreadsheet, splits fees against the advisor''s contract, generates invoices, and pushes them to the custodian for debit. Errors at intake propagate for years: a misclassified account type at the moment a book was migrated produces wrong fees every quarter forever. Fee splits between the advisor and the firm get reconciled by hand against contracts at payout time. Payouts depend on operations running ad-hoc reports per advisor.
Rebalancing runs on a calendar that nobody owns at the firm level. Some advisors rebalance monthly, some quarterly, some when they remember. Drift triggers exist in theory and live in each advisor''s head in practice. Tax-loss harvesting opportunities surface from conversations and market events, not from continuous monitoring of every account. Trade errors get logged in a spreadsheet that nobody audits regularly. Soft dollars, best-execution reviews, and trade reconciliations all sit on separate cadences.
The firm that runs billing, rebalancing, and trade operations as a connected automated layer has a measurable advantage in capacity per advisor and in tax alpha per client. The firm that does not loses time to spreadsheets and money to errors.
Fee Schedule & Billing Engine
Internal SoftwareStructured fee store that owns the entire billing cycle end to end
What The Software Does
Holds fee schedules keyed to account type, household, and fee tier in a structured store rather than a spreadsheet
Runs billing automatically on the contracted cadence with audit trail down to the account
Pushes invoices to the custodian for debit without manual intervention
Reconciles every invoice against the master advisor record before issuing
Fee Split & Payout Calculator
Internal SoftwareCalculates per-advisor splits against the contract and pushes payouts to payroll
What The Software Does
Calculates per-advisor splits against the contracted fee schedule and override rules
Pushes payouts to payroll without operations running ad-hoc reports per advisor
Handles pending and disputed fees explicitly with audit trail per item
Replaces month-end advisor email queries with a live dashboard view
Rebalancing & Tax-Loss Harvesting Agent
AI AgentRuns per-advisor and per-household rebalancing policies and surfaces TLH opportunities continuously
What The AI Does
Runs per-advisor and per-household rebalancing policies with explicit drift triggers
Surfaces tax-loss harvesting opportunities continuously rather than at quarter-end
Generates per-account trade lists for advisor approval with tax impact estimates
Coordinates trades across custodians to minimise tax drag and best-execution exposure
Trade Error & Reconciliation Tracker
Internal SoftwareCaptures every trade error, reconciles trades daily, and surfaces patterns
What The Software Does
Captures every trade error with cost, cause, advisor, and remediation status
Reconciles every executed trade against the intended action on a daily cadence
Surfaces error patterns by advisor, security, or custodian for operations review
Feeds the trade-error log directly into the books and records vault for examiner access
Advisor Trade & TLH Approval
Human ReviewAdvisor reviews proposed rebalances and tax-loss harvesting trades before execution
Review Criteria
Expected Impact
Before:
Operations runs billing through spreadsheets. Rebalancing depends on each advisor's calendar. Tax-loss harvesting is anecdotal.
After:
Billing, fee splits, rebalancing, tax-loss harvesting, and trade error tracking all run on one connected layer. Operations handles exceptions, not the work itself.
Result:
70 to 85 percent reduction in operations time per advisor per quarter, with 20 to 50 bps of additional tax alpha from continuous tax-loss harvesting and zero fee-miscategorisation errors propagating into billing