Portfolio Accounting Systems

What is a portfolio accounting system?

A portfolio accounting system is a software platform that aggregates investment data and provides tools for portfolio managers to analyze it across multiple asset classes, currencies, accounting bases, and reporting regimens in a consolidated place. These systems are used widely throughout the financial services industry to track and report transactions as they allow managers to make informed investment decisions to maximize the potential of their portfolio based on accurate, timely insight.


Why is a portfolio accounting system important?

Manually aggregating data from multiple sources is a critical, yet cumbersome task to perform. Teams often must piece together various documents and use spreadsheets filled with formulas to calculate final balances. This process is prone to errors and does not scale easily if new investments are made, strategies are changed, or as organizations grow.

Given the amount of data investors work with, they require a system that aggregates data for them and provides access to accurate, timely, and comprehensive information. Clearwater Analytics allows teams to automate their investment accounting process and improve accuracy to free time for more meaningful work.

With an advanced, automated portfolio accounting system, organizations can improve their investment decisions by leveraging a complete and consolidated view of their investments. This allows investors to identify any underperforming assets and quickly adjust strategies as needed.

The costs of not having a portfolio accounting system can be large. Teams spend hours gathering scattered, inconsistent data across disparate sources. This process is detrimental to productivity and causes missed investment opportunities or compliance breaches. Also it can introduce risk when investment managers are required to fully understand the impact market dynamics have on their portfolios.

A portfolio accounting system keeps all the assets in a portfolio and investment data organized and easy to find so no time is wasted trying to obtain a comprehensive view of investments. This enables investors to spend more time analyzing the data rather than finding, aggregating, and reconciling it.


How does Clearwater Analytics help?

Portfolio accounting software is one of the most valuable tools in modern-day financial planning. The ability to track, analyze, and accurately report the value of assets provides transparent and complete insights into an analyst’s investments, helping them make confident decisions that can lead to increased portfolio value over time.

Clearwater Analytics provides clients with a SaaS-based portfolio accounting system. Clearwater provides the most accurate and timely investment data, built into flexible reports and in a system that handles all asset classes, regulations, and currencies. Additionally, it is a risk mitigating solution in that it eliminates the need for manual intervention and provides actionable, accurate data for quick, strategic decision making. Hundreds of configurable reports allow you to group data, write formulas, pivot, and add or remove from thousands of datapoints in a few clicks. The system provides customized general ledger entries and a suite of standardized reports to automate regulatory reporting.

Our clients not only have readily available data to make quick and informed decisions to improve their returns, but they also receive a dedicated servicing team that acts as an extension to their team. The servicing team is available to answer an unlimited number of questions and is backed by our award-winning 98% client retention rate*.

The Clearwater solution is a flexible and scalable solution that allows you to capitalize on opportunities as they arise. Speak to an expert today to learn more ways Clearwater helps you to win.


*as of June 30, 2022