Can Management Company Accounting be Simplified?
The complex structure of most fund groups, with their layers of management companies, can make a seeming simple task - like paying bills - an arduous chore.
Written by fund accountants for fund accountants, Penny® is a robust software solution specifically aimed at the needs of investment advisors and asset managers.
Integrate G/L, Accounts Payable and Fund Expenses
Penny® includes full general ledger functionality, A/P (including checks & wires) and a robust allocation engine tailored to investment management.
The software handles disbursements, omnibus accounts, and manual or recurring journal entries.
So whether its paying bills, recording expenses, creating and tracking budgets, charging costs across companies, reporting capital balances to the principals, trust administration, or bank reconciliations, Penny® makes accounting for the entire organization easier.
Automate Your Allocations
With Penny®, you no longer need to manually calculate the allocated expenses for each fund, partner, and shareholder.
Penny allowed us to give the owners their allocated activity and capital balances. It is so simple to use that it actually makes accounting fun.
- Chief Administrative Officer 3 billion dollar fund group
Set defaults based on percentages or amounts. Full versioning makes changes time-sensitive. And now you can easily spread G/L costs and fees across entities:
- Company: allocate from one company or fund to another.
- People: allocate to management company principals.
- Groups: allocate to groups and easily handle member changes.
When you do have an unusual case, 1-step overrides make it simple to allocate the P/L based upon capital expense category, headcount, or square-footage.
Management Company Case Study
A three billion dollar fund group chose our software to handle all of their management companies.
Before Penny®, their workflow consisted of:
- recording the activity in a simple general ledger package,
- re-typing the monthly activity into large spreadsheets that would allocate the amounts to the various legal entities,
- and reconciling the spreadsheets back to the general ledger.
By entering the expenses directly into Penny®, and setting up defaults, they were able to allocate the activity immediately and generate comprehensive reports.
Their workload was so greatly reduced that they were able to tackle some of the projects that had been on management's wish list for years - such as budgets and forecasts.
