Accounts Receivable Checklist

Confirm KYC / CIP file is complete before establishing a billing relationship — government ID copy, OFAC screen, and beneficial-owner verification for entity accounts. A billing setup with a stale CIP is a common audit finding.

Pull the signed IAA from NetDocuments / DocuSign and confirm the fee schedule, billing frequency (monthly vs. quarterly), and billing method (in advance vs. arrears) match what will be loaded into the billing system.

Set up the household and account billing groups in Orion / Black Diamond / Advyzon. Confirm tiered breakpoints, householding aggregation rules, and excluded assets (held-away, alternatives) match the IAA fee schedule.

Verify the client signed Schwab / Fidelity / Altruist fee authorization is on file. Without it, fees cannot be debited and must be invoiced direct-bill — different workflow, different aging treatment.

Reconcile custodian positions against the portfolio accounting system before running fees. Stale prices, late-posting trades, or in-flight ACATS transfers will distort the billable balance.

Confirm the calculation method matches the IAA — average daily balance vs. period-end vs. period-start produces materially different invoices. Three-way check the result against the prior quarter's basis-point yield to catch outliers.

CFO or operations manager reviews exceptions: new accounts (pro-rated), terminated accounts (final fee), tier breakpoint crossings, and any client with a fee variance >15% from prior period. Sign-off required before custodian submission.

Upload the fee file to Schwab Advisor Center / Fidelity Wealthscape / Altruist. Confirm the file accepted without rejects; rejects are typically closed accounts, insufficient cash, or households without a fee-debit account designated.

Per Form ADV Part 2A and the custody rule, clients receive an itemized fee statement showing the AUM basis, rate applied, and amount deducted. Custodian statement is not a substitute — the firm-issued invoice is the audit-trail document.

Match the custodian's fee remittance (typically T+3 to T+5 from debit) against the submitted fee file. Investigate any account where the debit was reversed for insufficient cash.

Apply ACH and lockbox receipts to the corresponding invoice in the billing system. Partial payments require a memo so collections doesn't chase the balance prematurely.

Three-way tie: billing-system invoiced total, custodian remittance file, and bank deposit per the operating account statement. Variance over $500 escalates to the CFO same day.

Overcharges require client refund within the firm's stated SLA (typically 5 business days) plus a written explanation. Underbilled accounts are not retroactively rebilled without CCO approval — common Reg exam topic.

Run aging buckets at 30 / 60 / 90 / 90+ days. Most fee-debit accounts age zero; the aging report's value is in flagging direct-bill and terminated-relationship balances.

First reminder is courteous and assumes a clerical issue. Send via the archived email channel (Smarsh / Global Relay) — never personal email or text. Include invoice copy and remittance instructions.

Lead advisor (not operations) makes the call — the relationship matters more than the receivable. Document the conversation in the CRM with the agreed payment date. If the client requests a wire-instruction change, follow the call-back-to-known-number verification policy.

CCO and CFO jointly decide write-off vs. relationship termination. Per the IAA, the firm typically retains the right to terminate on 30 days' notice for non-payment. Document the rationale in the client compliance file.

Include billed revenue, realized basis-point yield, aging summary, write-offs, and any fee adjustments. Compare to prior period and trailing-twelve-month trend.

Realized basis-point yield should track the weighted-average fee schedule. Persistent under-yield often points to billing-group misconfiguration or excluded assets that should be captured.

Final review and digital signature on the period close package. Archive the signed package and supporting reports per the books-and-records retention schedule (Rule 204-2: minimum 5 years, first 2 in an easily accessible place).