By Peter Muldoon, Product Strategy Director, FundGuard
When it comes to investment accounting, the complexities of managing diverse asset classes, ensuring data accuracy, and maintaining compliance have historically been exacerbated by fragmented system architectures.
As we’ve previously covered, fragmented legacy platforms for different asset classes, investment products and jurisdictions have created a patchwork of systems with separate tools for data quality controls, inbound and outbound data management, dedicated data warehouses, and reconciliation processes to synchronize disparate datasets. While functional, this fragmented approach has introduced significant audit complexities, creating a layered grid with blind-spots between systems whenever extraordinary circumstances arise.
FundGuard’s modern, cloud-native investment accounting system is now breaking this pattern. By integrating all of these tools into a unified framework, there are many scaling advantages and risk reductions, but also, the under-estimated benefits of unprecedented, comprehensive audit trail capabilities.
Legacy investment accounting platforms, many of them still in use today, were built as collections of specialized tools, each addressing a narrow aspect of the accounting process, and each with its own method for ingesting inbound data, such as trade files or pricing updates, its own or separately integrated exceptions handling tools, and its own mechanism for exporting data to downstream systems or external partners.
To ensure consistency across these fragmented ecosystems, organizations have had to rely on reconciliation systems to validate and align data across the various processes. While effective in theory, this approach is inherently prone to:
FundGuard eliminates these added layers of complexity by integrating accounting functionality with exceptions management and inbound and outbound data management. This unified approach dramatically simplifies platform architecture and enhances audit trail capabilities in the following ways:
In legacy systems, investigating an issue can feel like a game of whack-a-mole, with problems resurfacing across multiple systems. By rethinking the role of accounting software as a comprehensive data management engine, FundGuard unifies surrounding data management, exceptions and recon tools under a single discipline – removing the chaos to create greater operational efficiency, improved compliance, and the ability to adapt seamlessly to the evolving and varied demands of regulators and investors.
As investment accounting software continues to evolve through the application of new and emerging technology, the advantages of integrating data management and audit functionality into a single, cloud-native system are clear. By eliminating the silos and redundancies of legacy platforms, FundGuard provides a robust, transparent, and efficient foundation for investment operations. Get in touch to learn more.
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