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 point, especially as client lists grow, that simple spreadsheets and free database software just can’t keep up. When it comes to managing corporate accounts and keeping track of dozens of clients with multiple IRAs, 401(k)s, offshore assets, structured settlements, trading accounts for stocks, bonds and brokerage services, these tools tend to fall short. It is at this point that most financial professionals turn to advanced portfolio management software.
These advanced programs can be used as anything from a corporate pension management solution to a complete hedge fund system. They provide real-time analysis of various markets, including simulations and advanced trend forecasts, as well as in-depth statistics and reporting for each individual income stream and asset class. This becomes key when working with high net worth clients or working with large, highly diversified corporate accounts. Fund managers also rely on them to create comprehensive hedge fund systems that allow them to closely track and monitor the (usually volatile) high-risk investments that make up those funds. These programs are also very commonly used by those with highly diversified portfolios as an asset management software solution. As personal or corporate wealth grows, investors typically need to diversify their wealth across as many asset classes as possible. Good portfolio management software makes what was once a difficult endeavor quite simple.
Choosing 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 finances for a corporation, individual clients on a case-by-case basis, or just your personal income and revenue streams?
If you work with a corporation, be sure to choose a requirement that works with 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 need to research for your particular field. In this case, you’ll want something that’s been rigorously vetted by the relevant members of your organization, especially those responsible for maintaining privacy and security, as well as compliance with regulatory requirements and reporting standards.
If you’re an independent financial professional, you have all the same concerns as a corporate financial manager looking for a hedge fund or other portfolio management system, plus a few extra, like maintaining separate and secure client accounts.