Data & Reporting: Why It’s Important

Typically those who are managing an Investment Advisory firm have resorted to their financial statements (profit & loss, cash flow, balance sheets, etc.) to gauge key business metrics like profitability, liquidity, and business production. Unfortunately, these metrics don’t tell the entire story.

Data and reporting that encapsulates the entire firm can help you understand your asset management activities to identify risk or market exposure to a specific asset class as well better prepare you in identifying an acquisition strategy that is best tailored for you growth or succession.

Business development is also just as important to measure on a firm-wide basis to better forecast your goals and targets, and ultimately how you measure up to them. Dovetailing on your business development reporting is the ability to view and understand the costs involved with all aspects of business development and the resulting revenue from it.

These are just a few examples of the myriad of reporting options for a Registered Investment Advisor. There are literally hundreds of reports and benchmarks that you can generate for your firm from your technology platforms, (i.e. CRM, Portfolio Accounting platform, Billing and Accounting platform, etc.) but they need to be concise, easy to monitor and flexible in their ultimate design allowing you the ability to course correct along the way to a more profitable business.

Key Performance Indicators (KPIs)

KPIs focused on staff productivity, processes and efficiency are integral windows to viewing the success or failure of your client service model and practice. However this is only part of the picture.