Practice management is more than just calling clients, sending market reports, using a CRM, or having a marketing plan. While all are important parts of practice management, deciding which technology to use will ultimately determine your practice’s profitability. Having the ability to choose your software and create your tech stack is exciting and can be equally stressful. “Due diligence” is recommended before making any technology decision, since not all are created equal.

The first two choices advisors make when they build their practice is which custodian (or custodians) and performance reporting provider to use. These two components essentially put the advisor in business (aside from clients, of course), but a third crucial decision is which trading and rebalancing software to use. After all, if advisors are unable to make trades or rebalance portfolios, what are clients paying for, aside from advice? CRM, client portals, financial planning software, and research also have their place in practice management, and choosing from the buffet of providers in each of these respective areas should be considered and how they fit into the tech stack through integrations.

Integrations are what enable practice management efficiency and making more money with fewer human hours on administrative tasks possible. But integrations must work together seamlessly 24/7, with no exceptions or downtime to the advisor.

Our colleague Matt Sonnen, CEO of PFI Advisors, further elaborates on the importance of advisors electing one strategic system choice at a time. Advisors must always consider which systems offer real bidirectional integrations with the most modern system they chose to implement in their technology stack. Here is an excerpt from PFI Advisor’s blog, Integratable ≠ Integrated, But there is hope:

“In our work with new and established RIAs looking to build and/or improve their technology stack, we encounter many frustrated advisors who lament, “We were told that the benefit of being an RIA was that all of our technology systems would be integratable with one another – while that may be the case for other RIAs, none of our systems talk to each other.”  We always smile and say, “Integration among your various back-office systems is definitely achievable, but it takes a lot of planning and execution to get there, and not all integrations are created equal.” –Matt Sonnen, Founder, and CEO, PFI Advisors.

A fully integrated stack is valuable to advisors when all the technology partners continually upgrade and look for additional partners to enhance the user’s experience. Additionally, all must be easy for advisors to use. And lastly, proper data flow must happen among all stack provider technologies.

At AdvisorPeak, our primary focus is how trading and rebalancing is executed. Still, equally important is how that data flows to the custodian, the performance reporting provider, the CRM, financial planning software, and client portal. Our partnerships must always provide advisors with a fully integrated back office that offers long-term benefits both economically and operationally to each advisor that uses it. Our partners and our belief systems must align, as well as our software does.

Our future release in 2021 will present trading and rebalancing in a completely new paradigm not currently available by any competitive platform.

Contact us to find out how our trading and rebalancing software is a crucial component of managing your practice.