When it comes to small personal investments and household budgets, most people have no problem using programs like Microsoft Excel, Google Sheets, or another simple spreadsheet tool to track and manage their finances. These tools can be useful for the financial professional as well, but there usually comes a time, especially as client lists grow, when simple spreadsheets and free database software just can’t keep up. When it comes to managing corporate accounts and tracking dozens of clients with multiple IRAs, 401(k)s, offshore assets, structured settlements, stocks, bonds, and brokerage business accounts, these tools often fall short. It is at this point that most financial professionals turn to advanced portfolio management software.
These sophisticated programs can be used as anything from a corporate pension management solution to a comprehensive hedge fund system. They provide real-time analysis of various markets, including advanced trend projections and simulations, as well as detailed statistics and reports on each individual asset class and income stream. This becomes key when dealing with high net worth clients or with large, highly diversified corporate accounts. Fund managers also rely on these to build complete hedge fund systems that allow them to closely track and monitor the high-risk (usually volatile) investments that make up these funds. These programs are also widely used by those with highly diversified portfolios as an asset management software solution. As personal or corporate wealth grows, it generally falls to investors to diversify their wealth across as many asset classes as possible. Good portfolio management software makes what would once have been a difficult task quite simple.
Choosing a portfolio management software
When it’s time to move from basic spreadsheets to more robust asset management software, there are a few things to keep in mind. First, are you managing the finances of a corporation, individual clients on a case-by-case basis, or just for your own personal income and income streams?
If you are working with a corporation, be sure to select a requirement that will work with any other systems already in place and make sure it meets your audit and regulatory requirements. Different industries have different standards, so this will be something you’ll need to research about your particular area. In this case, you’ll want something that has been thoroughly vetted by the relevant members of your organization, particularly those charged with maintaining privacy and security, as well as regulatory compliance and reporting standards.
If you’re an independent financial professional, you have the same concerns as a corporate finance manager looking for a hedge fund or other portfolio management system, plus a few others, like keeping client accounts separate and secure.
