Posted by Rachel Ho May 2, 2022 10:00:00 AM

Charitable organisations and nonprofits get their funds from various sources, such as membership dues, donations, and investments. Like every other business, a nonprofit also needs to manage its books. The core difference is that while other organisations do it for profitability, a nonprofit does it for accountability.

Nonprofits use fund accounting for bookkeeping. In this way, they can track where all their money is coming from and going.

However, fund accounting also describes portfolio, investment, and securities accounting. Simply put, it refers to the accounting of investment portfolios. Below, we discuss the benefits of investment-inclined fund accounting.

What is Fund Accounting?

Fund accounting means maintaining an investment fund's financial records. The investment portfolio may include everything from crypto and real estate to commodities and securities. Fund accounting helps value the instruments in an investment portfolio and forms the basis for financial statements.

It also allows an investor to review the portfolio's composition and performance. Fund accounting is beneficial for investment portfolios with a long-term outlook. The records it produces help identify opportunities, track gains and losses, and perform tax calculations.

What Does a Fund Manager Do?

A fund manager's job is to maximise returns on the investment, and this is done by analyzing the fund's performance. Being a fund manager, it can be hard to manage the accounting side of things when you're already busy ensuring proper compliance and administration of the portfolio.

However, fund managers are responsible for the financial reporting of an investment fund. Therefore, they should be aware of the different fund accounting standards available to them.

As manual fund accounting can be tedious for diversified and complex portfolios, it's better to use fund accounting software. It will automate many of the processes and make life a lot easier for the fund manager.

Benefits of Fund Accounting Software

What is fund accounting software? A fund accounting software, such as Tessaract, helps fund managers in decision-making by providing a more accurate and up-to-date view of the portfolio through workflow automation and reducing time spent on repetitive tasks. Here are some benefits of such software.


Find Better Entry Points

Anyone who has been in the investment market for some time knows how time-sensitive the decision-making process can be. If you delay opening or closing a position in the investment market, you can miss a lucrative opportunity.

A fund accounting software can help identify entry points for an investment portfolio. Fund managers can identify lucrative entry points with the help of detailed reports produced by the software.

The reports track the performance of various investments over a period. A fund manager can quickly decide which investment to enter and when with this information.

Improve Decision-Making Ability

The ability to make sound decisions is key to success in the investment world. Fund managers can make better decisions with the help of fund accounting software.

In fund accounting, the back-end plays a significant role in investment fund management. It shows how much investment you can afford to make and how much money you owe.

Tessaract provides regular reporting, shows critical performance metrics, and offers accurate measurements to help fund managers understand the current standing of the portfolio in the financial market. With this data, fund managers can decide how and when to invest in valued assets.

Meet Clients' Needs

The clients' needs change just as rapidly as the market itself. Keeping up with these changing demands manually can be somewhat of a hassle.

Tessaract facilitates collaboration between fund managers and clients, anywhere, anytime with our efficient collaboration tools.  You could be on the go and still be able to update your client about an entry position you capitalised on recently.

Make Audits Quicker and Smoother

Even though no one particularly enjoys them, audits are necessary in the investment world. They help ensure all financial activities are being conducted in an orderly manner.

Auditors need accurate and up-to-date information to complete their reviews. A fund accounting software can make the audit process much quicker and smoother as it provides all the necessary data in a readily accessible format.

Key Features of Tessaract for Fund Accounting

Tessaract's fund accounting features make document management, file sharing, and other processes a breeze for fund managers. Here's how Tessaract stands out from the rest:


Optimised Data and Document Management

Keeping track of all accounting documents can be challenging, especially if you work with multiple clients. However, you can offload this burden by using online storage and cloud-based file sharing solutions from Tessaract.

Tessaract's online solutions are safe, secure, and streamlined. Besides storing existing documents, you can also create new ones using multipurpose custom templates available on the platform for client onboarding or investor profiles.

Do you struggle to find a suitable template or document? Tessaract's advanced search filter lets you find exactly what you're looking for without wasting time.

Full-Fledged Accounting Solution

If you handle diversified portfolios, you'd know the sheer volume of data that comes with it. Tessaract's fund accounting software is designed to manage this data for you.

Tessaract lets you create customised reports as per your specific needs. You can also track how each investment performs over time and compare it with others.

  • Payment Reminders: It's easy to forget when a payment is due, especially when juggling multiple clients. Tessaract's payment reminders will help you stay on top of things and avoid late payments.
  • Case Management: Keep all your case-related data in one place. It includes client information, communication logs, file attachments, etc.
  • Bill Adjustments: Automating your billing process can save you time and hassle. Tessaract's bill adjustment feature lets you create and manage invoices with ease. Under the PEPPOL framework, you can utilise InvoiceNow or other payment methods to send invoices to clients.

Accurate and Real-Time Analytics

Performance tracking is an essential part of fund management. You need to know how each investment is performing to make the necessary changes. It's also imperative to keep track of the in and outflow of capital.

Tessaract offers accurate and real-time analytics to help you track a portfolio's performance based on your preferred OKR and KPI. With all indicators in one place, you can create comprehensive reports to make informed decisions for your clients' needs.

Accelerate Your Digitalisation Journey with Tessaract

Digital transformation has entered the world of finance, and there's no turning back. Tessaract is at the forefront of this movement, providing fund managers with the tools to succeed in a digital age.

If you're looking for fund accounting software to help you digitise your processes, Tessaract is the answer. Power your firm with Tessaract's agile corporate tools that enable you to achieve resource efficiency and continuous growth.  Get started today to use the platform's AI-powered solutions for efficient fund management.

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Rachel Ho

Written by Rachel Ho