{"id":21282,"date":"2025-03-20T10:00:00","date_gmt":"2025-03-20T10:00:00","guid":{"rendered":"https:\/\/www.sage.com\/en-gb\/blog\/?p=21282"},"modified":"2025-05-15T14:35:40","modified_gmt":"2025-05-15T13:35:40","slug":"portfolio-accounting-in-financial-services","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-gb\/blog\/portfolio-accounting-in-financial-services\/","title":{"rendered":"What is portfolio accounting in financial services?"},"content":{"rendered":"<header class=\"entry-header has-dark-background-color entry-header--has-illustration entry-header--has-illustration--generic\">\n\t<div class=\"container\">\n\t\t<div class=\"entry-header__row row align-center\">\n\t\t\t<div class=\"col col-lg-7 col-xlg-6 entry-header__content\">\n\t\t\t\t\t\t\t<div class=\"component component-single-header\">\n\t\t\t\t\t\t\t\t\t\t<div class=\"entry-header__misc text--subtitle text--uppercase text--small\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/category\/money-matters\/\" class=\"entry-header__link\">Money Matters<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t<div class=\"entry-title-wrapper\">\n\t\t\t\t\t<h1 class=\"entry-title\">\n\t\t\t\t\t\tWhat is portfolio accounting in financial services?\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t<p class=\"entry-header__description\">\n\t\t\t\t\t\t\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n\t<div class=\"single-post-details container\">\n\t\t<div class=\"col\">\n\t\t\t<span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2025-03-20T10:00:00+00:00\">20 March, 2025<\/time><\/span><span class=\"reading-time\"> min read<\/span>\n\t\t<button\n\t\t\ttype=\"button\"\n\t\t\tclass=\"social-share-button button button--icon button--secondary js-social-share-button\"\n\t\t\tdata-share-title=\"What is portfolio accounting in financial services?\"\n\t\t\tdata-share-url=\"https:\/\/www.sage.com\/en-gb\/blog\/portfolio-accounting-in-financial-services\/\"\n\t\t\tdata-share-text=\"Please read this interesting article\"\n\t\t>\n\t\t\t<span class=\"social-share-button__share-label\">Share<\/span>\n\t\t\t<span class=\"social-share-button__copy-label\" hidden>Copy Link<\/span>\n\t\t\t<span class=\"social-share-button__copy-tooltip\" aria-hidden=\"true\" hidden>Copied<\/span>\n\t\t<\/button>\n\n\t\t\t\t<\/div>\n\t<\/div>\n<\/header>\n\n\n<div class=\"wp-block-post-author has-dark-background-color alignfull\">\n\t<div class=\"container\">\n\t\t<div class=\"col\">\n\t\t\t\t\t\t\t<div class=\"co-authors\">\n\t\t\t\t\t\n\t\t<div class=\"entry-author-wrapper\">\n\t\t\t<a class=\"entry-author\" href=\"https:\/\/www.sage.com\/en-gb\/blog\/author\/staceymcintosh\/\">\n\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"40\" height=\"40\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2018\/11\/Stacey-McIntosh-350-1.jpg\" class=\"entry-author__image\" alt=\"\" \/>\t\t\t\t<span class=\"entry-author__name\">Stacey McIntosh<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n<p>Most financial services organisations today manage complex multi-entity investments. It\u2019s an approach that minimises risk but also creates a number of challenges for CFOs and other leaders.<\/p>\n\n\n\n<p>Portfolio accountants need to continuously monitor metrics such as cash-on-cash performance, fair market value (FMV) and net asset value (NAV) across numerous operating companies.<\/p>\n\n\n\n<p>There may be multiple territories and currencies to consider\u2014and all this data held across siloed systems and spreadsheets needs to be regularly compiled and analysed in timely and actionable reports.<\/p>\n\n\n\n<p>Despite the overwhelming amount of work, too many financial services firms are still relying on manual reporting, which is prone to error and tedious for accounting teams. <\/p>\n\n\n\n<p>Others may tick the required reporting requirements for compliance but don\u2019t have the visibility they need to inform higher level strategic decisions.<\/p>\n\n\n\n<p>When it\u2019s done right, successful portfolio accounting goes further than simply reconciling financial data. It\u2019s about empowering leaders with the data and insights they need to take action. <\/p>\n\n\n\n<p>And it\u2019s only achievable with the <a href=\"https:\/\/www.sage.com\/en-gb\/sage-business-cloud\/intacct\/industries\/financial-services\/\">right software<\/a>.<\/p>\n\n\n\n<p>Here&#8217;s what we cover in this article:<\/p>\n\n\n<?xml encoding=\"utf-8\" ?><div class=\"wp-block-yoast-seo-table-of-contents yoast-table-of-contents\"><ul><li><a href=\"#h-what-is-portfolio-accounting\" data-level=\"2\">What is portfolio accounting?<\/a><\/li><li><a href=\"#h-what-is-a-portfolio-accounting-system\" data-level=\"2\">What is a portfolio accounting system?<\/a><\/li><li><a href=\"#h-how-do-you-choose-the-right-portfolio-management-accounting-software\" data-level=\"2\">How do you choose the right portfolio management accounting software?<\/a><\/li><li><a href=\"#h-frequently-asked-questions-on-portfolio-accounting\" data-level=\"2\">Frequently asked questions on portfolio accounting<\/a><\/li><\/ul><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-is-portfolio-accounting\">What is portfolio accounting?<\/h2>\n\n\n\n<p>A portfolio describes the collection of investments a person has. <\/p>\n\n\n\n<p>These can be stocks, bonds, cash (and equivalents), or commodities, and their fund counterparts (or a mixture of all four).<\/p>\n\n\n\n<p>A portfolio can be strategic, whereby financial assets are held for a substantial period of time, or tactical. In a tactical portfolio, an asset is bought and sold quickly to hopefully secure a short-term profit.<\/p>\n\n\n\n<p>Portfolio accounting is the act of:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Monitoring the health of the portfolio<\/li>\n\n\n\n<li>Reporting on the portfolio<\/li>\n\n\n\n<li>Identifying the risks and opportunities to guide decision-making<\/li>\n\n\n\n<li>Advising on the metrics influencing a portfolio\u2019s performance.<\/li>\n<\/ul>\n\n\n\n<p>It\u2019s therefore important that portfolio accountants have visibility across numerous dimensions, asset classes, currencies, accounting bases, and different reporting schedules and requirements.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-is-a-portfolio-accounting-system\">What is a portfolio accounting system?<\/h2>\n\n\n\n<p>Financial institutions such as asset managers use portfolio accounting systems to monitor and report on investment performance.<\/p>\n\n\n\n<p>The software can also track transactions, positions, and risk metrics, and provide information for compliance, client reporting, and tax reporting.<\/p>\n\n\n\n<p>With the right systems at hand, accountants can focus on analysis and decision making, rather than simply compiling the data in a timely manner. <\/p>\n\n\n\n<p>The right system will often make it possible to automate tasks and generate reports with the click of a button.<\/p>\n\n\n\n<p>Portfolio accounting systems help firms manage investments more successfully, leading to better performance, more loyal client relationships, and overall business growth.<\/p>\n\n\n\n<p>In today\u2019s competitive market, one that has been plagued by uncertainty in recent years, it\u2019s an essential part of every accountant\u2019s toolkit.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-do-you-choose-the-right-portfolio-management-accounting-software\">How do you choose the right portfolio management accounting software?<\/h2>\n\n\n\n<p>The right accounting software helps accountants maintain portfolio visibility and control\u2014but it can be hard to find a platform that addresses all your needs.<\/p>\n\n\n\n<p>There are several key features worth looking out for. <\/p>\n\n\n\n<p>The first is flexibility. Portfolio accountants will be handling an array of asset classes, so it\u2019s important that the software can cope with a mix of stocks, bonds, cash and commodities, and provide real-time visibility around their performance.<\/p>\n\n\n\n<p>Your <a href=\"https:\/\/www.sage.com\/en-gb\/sage-business-cloud\/intacct\/industries\/financial-services\/\">portfolio accounting software<\/a> should be able to integrate with any other wealth management systems and other applications already in place (ideally via an open API), and streamline finance across entities, regions, and jurisdictions.<\/p>\n\n\n\n<p>Features such as the ability to create user-friendly, customisable dashboards are also important, helping cut down on staff time while elevating the insights that leadership teams can tap into.<\/p>\n\n\n\n<p>Finally, CFOs should make sure any portfolio accounting system they choose is scalable. <\/p>\n\n\n\n<p>As with any significant investment, this solution needs to be able to adapt and grow alongside the financial service organisation as it evolves for the future.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-frequently-asked-questions-on-portfolio-accounting\">Frequently asked questions on portfolio accounting<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">What\u2019s the difference between portfolio accounting and fund accounting?<\/h3>\n\n\n\n<p>Allocation is a key point of difference between portfolio and fund accounting. <\/p>\n\n\n\n<p>In fund accounting, transactions must be tracked at the partner level to account for differences in ownership, investment decisions, and management fees. <\/p>\n\n\n\n<p>Investors require their profits and commitments to be calculated on an individual basis, with specialised reporting which goes beyond ownership percentages.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">What is a portfolio accounting system?<\/h3>\n\n\n\n<p>A portfolio accounting system is used to monitor and report on investment performance. <\/p>\n\n\n\n<p>The software tracks transactions, positions, and risk metrics, and provides information for compliance, client reporting, and tax reporting.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">What is the best portfolio accounting system?<\/h3>\n\n\n\n<p>The best portfolio accounting system will depend on your budget and priorities, but you should look for software that is user-friendly and flexible, can integrate with your existing applications and systems via an open API, and can scale in the future.<\/p>\n\n\n\n<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">How a purpose-driven bank thrives with Sage Intacct<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p><!-- wp:paragraph --><\/p>\n<p>Learn how Kingdom Bank gained deeper financial insights and improved reporting capabilities with Sage Intacct.<\/p>\n<p><!-- \/wp:paragraph --><\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"https:\/\/www.sage.com\/en-gb\/success-stories\/kingdom-bank-ltd\/\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\tid=\"cta-id-21284\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tdata-button-location=\"cta_box\"\n\t\t\t\t\t\t\t\t\t\t\t>Learn more<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1214\" height=\"810\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2024\/07\/HR-chatgpt--1214x810.jpg\" class=\"single-cta__image\" alt=\"Woman in HR using chatgpt\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2024\/07\/HR-chatgpt--1214x810.jpg 1214w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n\n<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Subscribe to the Sage Advice newsletter<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p>Join more than 500,000 UK readers and get the best business admin strategies and tactics, as well as actionable advice to help your company thrive, in your inbox every month.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-b1a63862-3fa0-4a5e-bb67-c76b88bbc6b8\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Subscribe now<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1073797282-1-1440x810.jpg\" 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It empowers leaders with the data and insights needed to take action.<\/p>\n","protected":false},"author":346,"featured_media":19941,"menu_order":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sage_video":false,"post_featured_image_hide":false,"footnotes":""},"categories":[6],"tags":[135,159],"business_type":[3],"lilypad":[],"context":[],"industry":[],"persona":[68,71],"imagine_tag":[89,303,96],"coauthors":[353],"class_list":["post-21282","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-money-matters","tag-business-finances","tag-midsized-business","business_type-medium-sized-business"],"sage_meta":{"region":"en-gb","author_name":"Stacey McIntosh","featured_image":"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2024\/10\/BrandShoot-LND_June2024_Financial-Services_0229.jpg","imagine_tags":{"89":"Financial services","303":"Intacct Financial Services","96":"Medium businesses"}},"distributor_meta":false,"distributor_terms":false,"distributor_media":false,"distributor_original_site_name":"Sage Advice UK","distributor_original_site_url":"https:\/\/www.sage.com\/en-gb\/blog","push-errors":false,"_links":{"self":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/posts\/21282","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/users\/346"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/comments?post=21282"}],"version-history":[{"count":0,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/posts\/21282\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/media\/19941"}],"wp:attachment":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/media?parent=21282"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/categories?post=21282"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/tags?post=21282"},{"taxonomy":"business_type","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/business_type?post=21282"},{"taxonomy":"lilypad","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/lilypad?post=21282"},{"taxonomy":"context","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/context?post=21282"},{"taxonomy":"industry","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/industry?post=21282"},{"taxonomy":"persona","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/persona?post=21282"},{"taxonomy":"imagine_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/imagine_tag?post=21282"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/coauthors?post=21282"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}