AUM Fee Billing

AUM fee billing is the process of calculating and collecting advisory fees based on a percentage of the assets under management a firm oversees for each client. Because most RIAs charge on assets rather than commissions, this billing cycle — often quarterly — is how the firm actually earns revenue, and it must be accurate and defensible.

Advisors and RIAs care about AUM fee billing because errors create both compliance risk and client-trust problems. Billing software applies tiered or blended fee schedules, prorates for mid-period deposits and withdrawals, aggregates assets at the household level, and generates fee invoices or custodian debit files.

Typical billing workflows include:

• Tiered and blended fee schedules per household or account
• Proration for cash flows and partial periods
• Custodian fee-debit files and audit-ready statements

AUM fee billing is a core function of portfolio management software and often integrates with the wealth management software reporting that clients see.