portfolio accounting

What re the Basics of Portfolio Accounting?

Portfolio accounting is essentially about determining gain or loss. This is especially important when an investments in the portfolio is sold. Closing a position causes a realized gain or loss. Before selling, the gain or loss since purchase is only an unrealized appreciation or decline in value. Proper portfolio accounting requires an understanding of cost basics and holding period.

Realized Gain or Loss

In this portfolio accounting, the sale proceeds realized from selling a security in a portfolio is the whole amount received. This includes both cash and the fair market value of anything else received in exchange for the security. Determining gain or loss on the same of a portfolio security involves comparing the amount received with the basis of the investment. A gain occurs when the sale proceeds exceed the basis in the sold investment. There is a loss when the same proceeds are less than the basis.

Basis of a Security

The basis of a security in portfolio accounting is usually the cost of the purchase plus any associated commission and fees. The basis is different in portfolio accounting if a security is acquired by a different way than purchase. A gift during the life of a donor retains the basis of that donor. The portfolio accounting of the gift recipient uses the basis of the donor. However, the recipient of inherited property accounts for basis as the fair market value of the investment on the date of the decedent’s death.

Holding Period

Portfolio accounting for sold investments requires determining whether the holding period was short-term or long-term. A gain or loss is long-term when the investment is held fir more than a year. The gain or loss is short-term if the investment is sold a year or less after the purchase. The date of purchase is recorded to account for the holding period. The date of sale is the final day of a holding period.

fund accounting

Choose the Best Fund Accounting System for Your Business

A fund accounting software system manages business transactions and accounting activities across multiple currencies for alternative investment investors. There are so many of them in the market today. Here are eight of the most popular.

Abila Fund Accounting 100. Formerly Sage MIP, this fund accounting software is ideal for governments and nonprofits. It has earned the Campbell Award for popularity among customers on multiple occasions. This scalable system allows users to add modules to the system.

The Financial Edge. A forerunner in fund accounting software, this is specifically developed for nonprofits. It offers one of the best fund accounting solutions. Manage all accounting functions with its specific functionality and user-friendly interface.

Accufund Accounting Suite. This fund accounting software is a scalable nonprofit accounting solution that is easily implemented to cover the core accounting needs of most organizations. It also offers a specific option for government accounting needs.

Microsoft Dynamics GP. For organizations managing multi-tiered funds and unique funding streams, this fund accounting software is a great choice. It is able to automate much of the administration process and give timely detailed financial reports.

Microsoft Dynamics AX. Known as the most functionality rich ERP system in the Microsoft Dynamics family of products, it offers more than fund accounting software. It is usually installed on-premise, but can also be hosted remotely.

Microsoft Dynamics NAV. The fund accounting functionality in this system can help nonprofits track their expenses across multiple ledgers, manage grants and monitor donor contributions. It also helps with GASB compliance.

Multiview Enterprise .NET n10. A full-featured financial management solution, this fund accounting software offers 14 user-friendly modules and alerts with dashboards, imaging workflow and ViewSource 360 for users to easily monitor and control processes.

SAP Accounting. Over 30,000 global companies use its ERP Financials to manage different kinds of accounting needs, including fund accounting features. It ensures compliance with industry standards as well.

asset management

How is Post Trade Processing in this Modernized Industry?

The financial services industry continues to be more electronic, global and regulated, with new capital and margin requirements and reporting rules. This requires financial institutions to address operational efficiencies and look into new ways to reduce costs. With growing volumes, a more complex clearing process and declining commission rates, firms should streamline post trade processing globally.

Aside from post trade processing, managing money is also at the core of a financial institution’s business. From profitability to investing its own fund balances on a day to day basis to underwriting bonds and holding customer assets in safekeeping, the lifeblood of a firm is tracking and investing funds to its best advantage.

For both sell and buy side mangers, effective confirmation matching and processes are an important subset of this overall post trade processing trend, and they will become more and more significant over time. As post trade processing volumes for FX, options and OTC derivatives grow, it becomes more and more important for real time confirmation matching and related services to keep up with these volume flows.

The post trade processing environment has become an area where competitive advantages are won and lost though effective solutions. Those investing in these services will clearly win out over those who do not. And this trend will most likely accelerate as volumes continue to increase, and as regulatory and compliance standards become more demanding.

Fortunately, there are so many companies today that offer world-class, post trade processing solutions that help both sell and buy side clients improve management of operational risk, reduce costs and drive competitive advantages.

These post trade processing solutions includes operations that help financial institutions process securities and derivatives to efficiently manage their middle and back office processes and workflow along with integrated solutions for bank treasury and portfolio management, settlement and clearance.

investment accounting

Investment Accounting on Your Equity Investments

Companies with excess cash usually choose between different investment options for their money. These companies evaluate different investments based on the length of time they wish to hold an investment and their desired rate of return. Businesses investment accounting vary differently depending on the type of investments they choose.

While many companies may hold equity investments on their accounting books, financial institutions like banks and investment groups are the primary holders of equity investments. Companies must properly report these items on their investment accounting financial statements for outside stakeholders (external individuals or entities interested in a company, such as banks, investors, lenders or competitors).

Equity investments on investment accounting represent money spend to buy stocks or bonds from another company. These items are held as investments, with the holding company expecting a return on their invested capital. Stocks and bonds are the two most common investment accounting types of equity investments. Stock investments are reported as the price paid for the stock, while bonds should be reported at fair market value.

Equity investments are classified under one of three types of categories: held to maturity, trading or available for sale. Held to maturity investments indicate the company will sell the investments when they mature in value. Trading investments in investment accounting are actively traded by the company, and available for sale are matured investments the company is willing to sell.

Equity investments on investment accounting are reported at the end of each accounting period on the balance sheet company. Bond investment must be revalued at fair market value every time they are reported on the balance sheet. Equity investment accounting guidelines are found in Statement of Financial Accounting Standard No. 115, issued by the Financial Accounting Standards Board (FASB).


financial asset management systems

Going In-Depth with Financial Asset Management Systems

Over the past couple of years, we have learned that companies will save a lot of money and enjoy a reduction in administrative manpower by implementing financial asset management systems. There are so many reasons why companies need financial asset management systems. Usually, the primary drivers are visibility and increased efficiencies that lead to reduced manpower, reduction in spending, visibility of inventory, risk management, management reporting, asset reuse, security management, warnings based on asset related events, and visibility of compliance positions.

The key to any financial asset management system is an asset register, usually with functionality built around the records in that register. Some help desk systems have asset registers, although they rarely give the functionality and accessibility required to effectively manage assets. Low cost asset registers mostly do not give the flexibility to configure their application as needed.

If you are looking for a financial asset management system, make sure that you pick the one with features that will jive with the needs of your company. Go with financial asset management systems  that has the following attributes.

  • A simple asset register to assist with corporate governance
  • Asset KPI reports and asset performance reporting
  • Asset lifestyle management
  • Financial asset management and depreciation calculation
  • Keeping machinery maintained with planned maintenance
  • Tagging and periodically barcoding scanning assets to ensure correct inventory

If you are a company that will usually gain all of the financial asset management system benefits above that are relevant to them, and the following unexpected financial asset management system benefits will usually apply.

  • Easy reporting on elements of the inventory by different classifications
  • Reuse and visibility of assets placed in storage
  • Visibility of the reliability of assets by user, model and manufacturer
  • Reduction in asset purchase costs via reuse and price comparison
  • Asset register automatically kept up to date via integration to other systems
  • Other systems kept up to date via integration with the asset manager software
  • Email alerts on important events like capital acquisitions and disposals
  • Help desk that instantly attach an asset to an incident to facilitate quick resolution



investment accounting software

Comparing Investment Accounting Software Packages

The investment accounting software package that you select can have a significant on your organization. Some investment accounting software packages are simple while others are complex and involve many users with different access levels to data. Whatever the size of your business, your investment accounting software should give you a way to record transactions and get a better understanding of your business operations.

Assess your needs. Put together a committee that is made up of members of various departments with no more than 7 members. Have every member analyze the needs of their department. Analyze how these tasks are done and come up with plans to show how its efficiency can be increased with an improved accounting system. If you do not have the time or manpower to do so, consider hiring an independent consultant to assess your business and give an investment accounting software package recommendation.

Understand the kinds of accounting software packages. Entry level investment accounting software is for smaller companies with $5 million in sales or less. Companies with sales no more than $100 million and not more than 100 employees usually use small to medium business software. Companies with higher numbers use small to medium enterprise accounting software. Enterprise resource planning software is used by big companies with no more than $500 million sales and 500 employees.

Compare pricing. Entry level investment accounting software can cost between $100 and $2,500 while large companies can pay up to $250,000 and up for an accounting software package. Pricing should not be the most important concern, though. Rather, it should be to ensure that the accounting software package meets the demands of the organization.

Schedule on-site demonstrations. Vendors should be more than happy to let you and other decision makers to test drive the investment accounting software. Discuss how the software can be implemented and integrated into your business. Ask the vendors about installation times and any system requirements for compatibility.

Review the legal consequences. When making a big investment in an investment accounting software package, have your attorney go through the contracts to protect your best interest. Language should be stated in the contract regarding your recourse of the software does not work. Note the cost of maintenance and upgrades to your software.


Trading Order at Its Best


In a fast-changing market, managing a comprehensive system for the trading workflow is best. The client and market demands will always seek for a quick response to on the trading process. Thus, it can be obtain in various ways. The system must be efficient enough to sustain its demands to continuously adhere to its goals. It is said that trade order management system has established the institutions’ goals on achieving wellness and development with the help of diverse trading strategies implemented; global, multi-asset trading solutions to optimize your trading workflow, massive global distribution to markets, managing risk and compliance, and improvement on operational efficiency.


Qualities of an Effective Trading Order Management System



You can take control on your market risk and compliance better through the help of an effective trade order management system which can provide a full range of derivatives for managing market, credit, and risk; find one who supports regulatory and firm compliance requirements with reporting.



It is important to have an improvised single workspace for individual users is provided to fully manage the workflow; flexibility to define and change display options based on their individual needs because this will help the users to comprehensively do the duties without delay and error. Also, you need to have a real-time monitoring with reversible reports wherein you can simply edit your reports easily and save it.



Your trade order management system is effective when you can capitalize on the largest network in the side of the buyer and seller investors as well as the customers. You must also try to consider the use of advanced pricing tools to be able to produce and distribute quotes to the global markets.



Change is the only constant thing in this world. Moreover, changes give birth to development and improvement. With the help of continuous innovation, improving operational efficiency is elevated to produce admirable results; platforms, and post-trade matching facilities to achieve straight through processing. These improvements generate firm-wide operational efficiency through seamless workflow and pre-integration.


In the end, taking the risk of keeping up with the costs of development prerequisite with changing markets, instruments, and technologies will always be your choice.


pension fund management

Fund Management System the Key of Every Firm’s Success

One thing to think about in the identification of a company’s pension fund management system is being able to select a management system without hurting other key areas of your organization, particularly on personnel budgets. Costs of the company’s pension fund services must be minimized. That’s the reason why being able to carefully choose a system which can lift the company’s venture on this matter should dominate along the process.


You would also need to determine those highly appreciative employee retirement schemes which are known around the world that you could possibly apply on your company. Deal with award-winning individuals and trusted partners to confidently pursue on these goals. You can try to explore a lot systems that will help you tag the system that would best suit to your business.


Pension fund management software takes a very big role in determining your company’s pension fund management system. With the continuous growth and innovation at present, it is set that identifying the optimum key of success is quiet unclear, but with the help of software and computer assistance, surely a massive development will surely be an outcome.


Gain from a pension fund management software which allows you to attain a high level of straight-through-processing in all key areas of your organization. Deal with complex requirements from external and internal clients, as well as regulators, while minimizing the impact on your system and personnel budgets.


Utilize sophisticated tools for special requirements and efficiency. Pension fund management software has support for alpha/beta strategies, asset allocation, FX overlays, internally or externally managed mandates, and more.


You can get efficient system support for key pension fund business operations, including:

  • Portfolio Analysis tool and model portfolio design
  • Pre- and post-trade compliance checks
  • Rebalancing
  • Order management
  • Performance measurement
  • Risk management
  • Reporting


With all the features and the benefits your firm can take advantage of having an effective pension management system of your choice, your firm will get the competitive edge and will always be on the right pathway for a stronger and more productive future ahead.


financial services risk management

Expert Remodeling Tips for Financial Services Risk Management

A remodel can be a confusing and stressful process, with most of the stress centering on the amount of money involved as well as the complex nature of construction projects. With the following financial services risk management tips, you can manage the finances of your home remodel and safe you from major headaches and disasters down the line.

  • At the start, work to reduce the chance that something goes wrong as mistakes can cost money. The key to financial services risk management is specificity, so you have to be clear about what you want. This will define your desired outcome.
  • Reduce your financial risk with a fixed price contract. Remodeling comes with many factors outside the control of you and your contractor. Perform financial services risk management by ensuring that you give your contractor a set price.
  • Create a smart payment plan. Your payment plan should make sense for your project, and come with a schedule so your contract will only get paid for work completed and to your satisfaction.
  • Have a task schedule, and only pay for tasks completed in that schedule. In the contract, specify to the best of your ability the exact tasks that need to be done and how much each task costs. Check if the work is done.
  • Know whether and why you need a change order. Having a clear scope of work in your financial services risk management will be your best leverage should there be any unnecessarily expensive change orders.
  • Only make the final payment once your task list is complete. Each task in the list should be finished before handing the last check. A good contractor will return to fix problems with his workmanship on reputation.
  • Motivate your contractor by providing that he will get paid. The best way to ensure great work from your contractor and satisfactory financial services risk management is to prove that you can and will pay him.

Never pay in cash and keep receipts. Handing over cash will leave you paper trail for the payment you made, which is bad financial services risk management. You will have no protection if you discover something is wrong with the work.


Diversification of Portfolio to Better Portfolio Management

In establishing a strategy that tempers potential losses in a particular market, portfolio management systems preaches for the right and subtle process of every endeavour, asking for excellence on this particular field to better serve and help the needs the recipients.

Diversification has always been a battle cry for many financial planners, fund managers, and individual investors alike. If the market is booming, it seems almost impossible to sell a stock for any less than the price at which you bought it. When the indexes are increasing generously, it will seem foolish to be in anything but equities. But because we can never be sure of what the market will be at the moment, we cannot forget the importance of a well-diversified portfolio.

Diversification is not a new concept. Remember that investing is a passion and not a game that you can gamble on. The moment you venture into business that is the time to practice disciplined investing with a diversified portfolio. Diversification becomes a necessity indeed. A well-diversified portfolio clashed with an investment horizon of in the span of five years will beat portfolio management systems. Here are some diversification tips:

Distribute the Wealth

Equities are wonderful; however, don’t put all of your investment in one stock or one sector. Be smart. Create your own virtual mutual fund by investing in a handful of companies you know, trust, and perhaps even use in your day-to-day life. People will somehow argue with this idea but knowing a company or using its goods and services can be a healthy and its going to be a wholesome approach to the sector.

Emphasize on Index or Bond Funds

Consider adding index funds or fixed income funds. Investing in securities that will help you track a variety of indexes will provide you long term diversification investment on your portfolio. By giving additional fixed income solutions, you are taking your portfolio to a higher level and eliminating volatility and uncertainty.

Keep Building

Increase your investments on a regular basis. In that way, there will be a smooth out on the peaks. Just make sure you invest your money into a specified portfolio of stocks or funds.

Be intelligent, know when to go out

Investing with a large amount can sounds strategic, but just because you have invested in a trusted one does not mean you should ignore the forces of work. Be vigilant with your undertakings and remain in control with the overall market conditions. Know every single detail of the company you are joining with.

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