How Fund Administrator Is Different from Fund Accountant?

 

Fund Administrator Vs. Fund Accountant - What's the Difference?

Fund administrators and accountants are common in businesses in the finance domain. Fund Administrator entails accounting, monitoring, and reporting transactions and values for the investment portfolio. A fund accountant, on the other hand, is primarily involved in an accounting system that non-profit entities use to monitor the cash amount allocated to various purposes and how that cash is used. Fund accounting doesn't track if the entity has made a profit as non-profits do not operate with the profit motive. 

A fund administrator looks into the management of the performance of funds, while fund accountants report investment portfolios to the executives. Let's understand the difference between the two in more detail.

 

How a Fund Administrator and a Fund Accountant are Different?

A fund of fund administrator is basically an outsourced third-party service provider who secures the needs of investors by confirming the fund valuation and assets. Usually, Fund Administrator consists of fund accounting and the registrar's activities. It usually indicates different back-office tasks and is a bit different than what fund accounting is, which consists of:

• Management of weekly, monthly, and daily Net Asset Calculation. 

• Calculation of income funding, expense, revenue, and security pricing of existing market value. 

• Financial reporting and organizing financial statements. 

• Commencement and management of bank account funds. 

• Maintaining books and records of financial funds. 

• Establishing shareholder reports. 

 

A fund accountant assists in recording and reporting transactions related to business to the executive. Some of the key areas in which they assist include the following:

• Recording portfolios for investments.

• Real estate investment fund accounting. It means accounting of mutual funds.

• Management of actions associated with fund accounting.

• Regulating mutual funds processing that involves bonds and equity.

• Arranging financial statements of the year using Generally Accepted Accounting Principles or GAAP.

• Estimating accuracy by controlling the salesforce CRM.

 

How does a Fund Solutions Provider help with Fund Administration?

A reliable fund provider like the Ascent fund solution helps you be aware of every aspect of your finances. Such a fund provider has highly trained and dedicated staff and a good social presence. They fully understand their responsibilities and are committed to meeting customer expectations. 

The provider focuses on proprietary solutions for core systems and is in a great position to respond well to the volatile nature of the alternative investment domain. You benefit from a trustworthy relationship and cost-effective services defined by the greatest level of expertise. 

The alternative fund services offered by the provider include the following:

• Transfer agency fund

• Fund administration

• Alternative investment fund management 

• Tax services 

• Distribution solutions 

• Company secretarial services

• Document production

 

Final Words

There are various differences between fund administration and fund accounting. While the former is involved in monitoring and analyzing financial documents for their clients, the latter mainly compares and analyzes quantitative financial assessments. Their work aids finance businesses in balancing the value of their funds. A reliable fund solutions provider has a good know-how of the uncertainties faced by the investment manager and offers fund administration services that minimize risk and provide efficient operational processes.