The evolution of investment performance reporting within family offices is reshaping how these organizations approach technology and efficiency. Increasingly, family offices are moving away from costly, traditional performance reporting software in favor of innovative overlay solutions—a shift driven by a desire to reduce complexity, cut costs, and leverage existing expertise.

The Hidden Costs of Traditional Performance Reporting

Historically, family offices have relied on standalone performance reporting SaaS platforms to track metrics like IRR, TWR, and PnL. While these tools promise comprehensive insights, they introduce a significant operational burden: the need to run two separate systems in parallel—the general ledger (GL) system and the performance reporting software.

This dual-system approach creates several challenges:

• Increased Operational Complexity: Staff must maintain, reconcile, and update data across both platforms, increasing the risk of errors and inconsistencies.

• Higher Staffing Costs: Running two systems requires specialized talent for each, adding unnecessary headcount and training expenses.

• Redundant Workflows: Data entry and validation must be duplicated, wasting time and resources.

• Fragmented Data Sources: With two systems, there is no single source of truth, complicating audits and decision-making.

The Power of Leveraging Existing GL Systems

Family offices already invest in robust GL systems—such as QuickBooks, Xero, Sage Intacct, or FundCount—and employ skilled professionals to manage them. These systems serve as the authoritative source for all financial data.

Rather than layering on additional complexity with a separate performance reporting SaaS, family offices are turning to overlay solutions. These innovative tools integrate directly with the GL, using it as the foundation for all performance calculations and reporting.

Benefits of GL Overlay Solutions

• Cost Efficiency: Overlay solutions eliminate the need for additional staff to manage a separate performance reporting system, reducing both direct and indirect costs.

• Simplified Operations: With only one system to maintain (the GL), workflows are streamlined, and the risk of errors is minimized.

• Single Source of Truth: The GL remains the authoritative data source, ensuring consistency and reliability in reporting.

• Customizable and Scalable: Overlay solutions are designed to adapt to the unique needs of each family office, offering flexibility as investment strategies evolve.

• Easy Deployment: These solutions are quick to implement and require minimal disruption to existing processes.

Collation.AI: A Modern Approach to Performance Reporting

Collation.AI exemplifies this new paradigm, offering overlay solutions that integrate seamlessly with all major GL systems. By building on the existing infrastructure and expertise within family offices, Collation.AI enables powerful investment reporting—including IRR, TWR, and PnL calculations—without the cost and complexity of traditional SaaS platforms.

Conclusion

Family offices are no longer willing to accept the added costs and complexity of running dual systems for performance reporting. By leveraging their existing GL systems and in-house talent, they are embracing overlay solutions that deliver efficiency, accuracy, and scalability. Collation.AI is leading this transformation, proving that the future of investment performance reporting is about smart overlays—not cumbersome, redundant software.