Investment Reconciliation

Investment Reconciliation Software

Investment reconciliation software provides accurate and timely data to institutional investors, lessening the burden on accounting and investment teams. It helps detect any mistakes or discrepancies in accounting books, helping ensure the company’s financial health.

Often, some of the biggest challenges businesses face with investment reconciliation involve manual, error-prone processes that can delay the entire reporting process. Other challenges include incomplete security master information, infrequent data processing, exception tracking, and resolution discrepancies.

To solve these challenges, businesses are increasingly relying on software such as the Clearwater Analytics solution for automated investment accounting reconciliation. To learn more about investment reconciliation software and the benefits an automated platform can bring to your company, talk to an expert today.

What is Investment Reconciliation? 

Investment reconciliation is the process of confirming accounting values are correct before they are included in financial statements and reports.

Redefining Investment Reconciliation 

Automated software redefines the reconciliation process by letting technology handle the heavy lifting. This can save companies time, money, and resources – eliminating the need for outdated legacy systems.

The Investment Reconciliation Process 

From beginning to end, the reconciliation process involves manually comparing data points to ensure any discrepancies are found and corrected. While reconciliation process can be complicated and time-consuming, it can be broken down into the following general steps:

1. Compare internal data points to custodian data to ensure transactions match in both records, identifying any transactions that don’t align.

2. Identify custodian-recorded payments that are not in the internal cash register, and the other way around, to account for any hidden fees or transactional delays.

3. Ensure all receipts are accounted for in the bank statement and all other transactions are accounted for in the internal register.

4. Balance all records by making sure the internal register is perfectly equal to custodian statement for good financial health.

Benefits of Automated Investment Reconciliation Software 

Scalable & Flexible 

Automated investment reconciliation software can provide access to all investment data in one place, allowing users to focus on strategy rather than time-consuming reconciliation efforts. Additionally, software can give users complete control over all report variables, including which data points are used and the format of the finished report.

Save Time

Manual data reconciliation is tedious and time-consuming. Automated investment reconciliation software provides an alternative for teams seeking an efficient and automated process.

Save Money

Automated investment reconciliation saves accounting teams money by allowing them to focus on other tasks and projects. For instance, if balance sheet errors occur, it can be an expensive process to track down the source and correct it. Software can make the process easier by automatically tracking down and correcting the errors.

Investment Reconciliation Software Features from Clearwater Analytics 

The Clearwater platform provides clients with a single, consolidated, and transparent view of investment data and analytics. It helps clients reduce cost, time, errors, and risk and allows them to reallocate resources to other value-creating activities.

Accurate & Timely Investment Data

Every day, Clearwater provides access to up-to-date, accurate data for investment portfolios.

Automated & Managed Data Acquisition

Clearwater connects with hundreds of financial institutions daily to receive financial data. By reducing manual data management processes, errors are mitigated, and investment accounting teams gain additional time to pursue other projects and tasks.

Automated & Managed Data Validation

Clearwater’s data validation, enrichment, and reconciliation solution compares data against multiple sources to identify the best comparative data for each individual security in a portfolio.

Daily Data Processing

With Clearwater, data is automatically processed each day. Fully reconciled and accurate data is available every day.

Painless Exception Resolution 

Clearwater helps resolve exceptions quickly and accurately. After Clearwater’s proprietary software reconciles all positions and transactions, exceptions the system cannot reconcile are flagged and individually investigated by Clearwater’s team of experts.

What Our Clients Say

Clearwater’s system streamlines the entire reconciliation process and provides core accounting information, including amortization, general ledger, and yield – across a wide range of markets.

According to a third-party study by Hobson & Company, organizations that switch to Clearwater see on average a 75% reduction in time spent reconciling, accounting, and reporting on investment data.

“Clearwater has transformed the way we do business. A majority of the higher-risk, manual touchpoints have been automated away, with appropriate data validation checks to ensure a high-quality end product.” -Stephen McLoughlin, Manager, Delphi Financial Services

“We have confidence that our numbers are correct with Clearwater. With the push of a button, I have all the data I need for board reporting without any manual processes. It’s incredible, and I would recommend it to anyone.” -Shannon Bell, Finance Director and Treasurer, Jackson County 

Markets Clearwater Analytics Serves

Corporations 

Corporations have made significant investments in technology to improve key areas of the business, but investment reporting processes have largely been overlooked. Clearwater improves overall operational efficiency and eliminates the need to maintain disparate systems and manual processes, while continuously evolving to meet the reporting needs of corporations around the world.

Public Sector

The most successful public sector teams use Clearwater to reduce their risks, hidden costs, and improve adaptability through automation, accuracy, and elimination of related IT infrastructure costs. Employee bandwidth is freed from performing manual accounting processes and can be shifted to more meaningful objectives.

Asset Managers

Asset managers today are facing an increasingly competitive market, and they are struggling to manage costs, provide higher returns, and deliver world-class services. Clearwater helps asset managers improve data quality, cut costs to maintain margin, and scale client services.

Insurers

Clearwater provides insurers with complete investment data across portfolios and asset classes. Clearwater helps insurers navigate the continuously changing and increasingly complex investment environment, whether by tracking and implementing new regulatory policies, or by adapting to new and evolving asset classes.

Get Help with Your Investment Reconciliation

Learn how the Clearwater solution can help your organization automate your investment reconciliation process. Schedule a short, 30-minute demo today to get started.