Portfolio Accounting

What is Portfolio Accounting?

Investors now function in very complex financial situations. Often investors have to juggle diverse investments in multiple portfolios and they need access to a variety of accounting tools. Be it an individual, investment firms or insurance companies, they might not want the expense of an in-house accounts managing and auditing team. This is where portfolio accounting comes into play. For investors operating in today's complex financial arena, effectively juggling an array of investments in multiple portfolios requires access to the most comprehensive accounting tools to help you achieve your overall investment objectives.


Portfolio accounting outsourcing services include a vast range of accounting solutions for firms. It could mean handling functions like contract auditing, asset administration (which includes processing of new leases, renegotiations, renewals, terminations, equipment sales etc), sales invoicing, cash receipts' application, collections, lease reconciliation, reporting on delinquencies, cash receipts, invoicing, calculating depreciation, sales and property taxation, lease earnings, or cash flow projections, maturing leases, renewal status, insurance expiration and document management.




It could also mean that the outsourced firm provides online updated information about global markets as well as customized market reports and general trade data.


In addition to equities and fixed income assets, outsourcing services offer for a full range of private assets, derivatives, cash and foreign exchange instruments. They service all futures and options transactions in an automated environment and account for contracts, collateral tracking, daily mark-to-market of positions, and margin movement. Outsourcing companies capabilities include accounting in both local and base currencies. They ensure pricing accuracy by a series of daily data quality verifications using a zero-tolerance standard.


Success requires an unwavering focus on your core competencies - managing assets and client relationships. At the same time, managers need to be focused on enhancing performance, reducing costs, avoiding long-term capital expenditures, maintaining business continuity and developing contingency plans.