The Top Three Benefits of an Accounts Receivable Tool

John Milne – 01/19/2021

Cash flow is one of the most essential components of any business. Yet many times, invoicing and payment tracking are left to manual processes. This requires valuable time and resources and can be associated with errors that have significant consequences, such as tax penalties or client discord.

Technology solves this concern. Having your accounts receivable tool natively integrated into your portfolio management and client communication platform ensures accuracy, accountability, and workflow harmony. It also provides essential cash flow information that is difficult to understand when left to manual devices. Therefore, you can make the proper business decisions that lead to client satisfaction and company growth. Additionally, it helps you avoid uncomfortable client disconnect by ensuring you can communicate effectively with your clients when needed.

As part of the Billing application, the Black Diamond® Wealth Platform has an accounts receivable tool that automatically identifies fees you’ve billed that have been received by your custodian or via direct payment. This ensures your firm has up-to-date revenue details and transparency into both received and outstanding balances.

The top three features and benefits of this tool are:

  • Confidence in financial decisions. The accounts receivable tool puts the power of financial decision making directly into your hands in an automated fashion. Visibility and understanding of how much money has been billed, and what has been received, provides valuable information. Gaining upfront insight into revenue, income, and profitability empowers you to make business decisions tied directly to cash flow, spending, and in turn, profitability.
  • Organized payment management. By having a framework that provides transparency and flexibility, you can run a business that provides end-to-end client satisfaction. For example, if you need to contact a client to discuss payment, all of the outstanding balance information is readily available, including the underlying fees and transactions. You also have visibility into and control of any unreconciled data that populates when the finalized fee does not align in value with the fee(s) received from the custodian. You can then evaluate this information and choose to reconcile, clear, or delete it from the accounts receivable system. This is especially beneficial for those clients who pay by invoice so records remain accurate, which avoids unnecessary confusion.

  • Compliance readiness. Accountability failsafe is delivered in the form of role permissions, so users at your firm only gain necessary access. For analysis and compliance purposes, all reconciled accounts receivable data is exportable and filtering options are available to isolate desired information. The export itself contains a comprehensive collection of all data points associated with the fees and transactions reconciled for each account and each individual reconciliation instance. The ability to easily drill down and export specific data regarding fees and transactions equips you with the information needed to back your accounts receivable process.

Black Diamond’s entire client Billing application is an elegant and robust suite of tools that provide a comprehensive way to set up, generate, and analyze client fees. Tailored billing methods, streamlined workflows, custom exports, firm-wide revenue tracking, and more provide your firm with the tools necessary to itemize your value in a way that makes sense to both you and your clients.


To learn more about joining the Black Diamond community, I encourage you to request a personalized demo today.