What does the Billing Drift Detector do?

It analyzes AUM changes against billed fees across multiple periods, detects unusual variance patterns, and flags accounts where the effective fee rate deviates from the signed agreement.

How often should we run this?

Most firms run it quarterly before billing cycles. It can also run on-demand after fee schedule changes or when clients question their invoices.

Billing Drift Detector

Verify if AUM and billing fees have drifted significantly over recent periods. Detect anomalies in fee calculations to ensure billing consistency and revenue accuracy.

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Why This Matters

Billing consistency protects both revenue and relationships

Fee calculation drift creates revenue leakage and client trust issues. Small billing inconsistencies compound over time, creating both financial and relationship damage.

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Underbilling reducing revenue without detection

Systematic underbilling goes unnoticed until someone runs the numbers. By then the leakage compounds across quarters.

error

Overbilling triggering client complaints and refunds

Clients notice when fees spike. Overbilling erodes trust, requires refunds, and creates regulatory exposure.

account_tree

Inconsistent application of tiered fee schedules

Tiered breakpoints applied incorrectly across accounts result in fees that don't match signed agreements.

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Audit trail gaps when questioned about billing methodology

Without systematic validation, explaining billing decisions to auditors or clients requires manual reconstruction.

What This Agent Automates

check_circleAnalyzes AUM changes against billed fees across multiple periods

check_circleDetects unusual variance patterns in fee calculations by account

check_circleFlags accounts where effective fee rate deviates from agreement

check_circleCompares billing methodology consistency across similar accounts

check_circleGenerates variance reports prioritized by financial impact

What It Eliminates

cancelManual sampling of billing accuracy across hundreds of accounts

cancelRevenue leakage from systematic underbilling errors

cancelClient complaints from overbilling that could have been caught

cancelHours spent investigating billing questions without historical analysis

How It Works

From raw data to validated billing in four steps

Analyze

Historical AUM values, billed fees, fee schedules, agreements.

Calculate

Expected fees vs actual fees, variance patterns over time.

Flag

Accounts with unusual drift, systematic errors, anomalies.

Report

Prioritized variance list with specific account-level details.

Example Outputs

What the agent actually produces

Billing variance detected

Account 34567 billed $2,800 Q4 but calculated fee should be $3,125 (1.25% on $1M average AUM).

Suggested action: Review calculation methodology and issue corrected invoice or document approved exception.

Systematic underbilling

23 accounts consistently billed at 0.85% despite 1.00% agreement terms (estimated $47K annual revenue loss).

Suggested action: Audit billing system configuration and issue correction invoices for affected accounts.

Billing consistency verified

All sampled accounts billed within 0.5% of agreement terms. No systematic drift detected.

Suggested action: Billing process operating correctly. No remediation required.

Who This Helps

Built for the teams responsible for billing

Finance Teams

Detect revenue leakage from billing calculation errors.

Operations

Identify fee methodology inconsistencies systematically.

CCOs

Ensure billing practices remain consistent with disclosures.

Principals

Protect revenue accuracy while maintaining client trust.

Get Started

Ready to detect billing drift?

15-minute diagnostic call. We review your billing setup and show you exactly where drift is occurring.

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