Fund accounting is a method that allows to separately follow multiple organizational activities. It can also be used to refine the monitoring of your organization, as well as ensure complete transparency in the use of certain sources against your budget.
Every company – whether it’s a not-for-profit or private equity investment manager – must track its business's financial inflows and outflows. All businesses must capture in some accounting ledger how many purchases they made, how much money came in, and other essential financial events.
Not for Profits
Whether operating Private Foundations or traditional mission-driven NFPs also have investment activities these types of activities must be recorded following special regulatory guidance issued by the Financial Accounting Standards Board (FASB).
For NFPs a fund is any area of your organization where activity must be accounted for separately. It becomes like a small organization with its own independent accounting system. Yet in the end, all of the fund’s accounting will be consolidated into the overall accounting of the nonprofit. It is a system within a system.
Private Equity & Alternatives
The distinctive characteristics of private equity fund accounting give rise to rare challenges and make the need for experts in the field clear.
Some of the responsibilities of fund accounting in private equity have technicalities that integrate, corporate accounting – such as classifying income and expenses on an accrual basis and verifying accounting records against external sources – but others are exclusive to investment funds.
- Financial consolidation
- Multi-currency operation
- Investment fee calculation
- Capital account allocations
- Capital calls & distributions
- Financial Statements
- Fund performance metrics
- Regulatory reports
- Equity method reporting
- Fair value reporting
- Roll-forward report creation
- Accounting framework review, and selection
From more basic strategies to highly sophisticated and complex investments and fund structures.
Take the operational burden away from you in an ever-changing investment environment, with increasingly complex regulatory requirements.
Save time and reduce errors with automated financial consolidation accounting tools.
Save hours to days creating, troubleshooting, and reconciling inter-entity transactions.
Get your reports at your fingertips and ensure timely tax and regulatory filings for proper compliance.