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 also be useful to the financial professional, but usually there comes a time, 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 tracking dozens of clients with multiple IRAs, 401(k)s, offshore assets, structured settlements, stock, bonds, and brokerage trading accounts, these tools are usually insufficient. It’s at this point that most financial professionals turn to advanced portfolio management software.
These sophisticated programs can be used as everything from a corporate pension management solution to a comprehensive hedge fund system. They provide real-time analysis of various markets, including simulations and advanced trend projections, as well as in depth statistics and reporting on each individual income stream and asset class. This becomes key when dealing with clients with high net-worth or dealing with large, highly-diversified corporate accounts. Fund managers also rely on these to create comprehensive hedge fund systems that allow them to closely track and monitor the (usually volatile) high-risk investments that make up these funds. These programs also very often used by those with highly-diversified portfolios as an asset management software solution. As personal or corporate wealth grows, it generally behooves investors to diversify their wealth over as many asset classes as possible. Good portfolio management software makes what would once have been a fraught undertaking, quite simple.
Choosing a Portfolio Management Software
When it comes time to move on from basic spreadsheets to more robust asset management software, there are a few things you need to consider. First, are you managing finances for a corporation, individual clients on a case-by-case basis, or just for your own personal income and revenue streams?
If you’re working with a corporation, be sure to select a requirement that works with any other systems already in place, and make sure it meets your audit and regulatory requirements. Different industries have differing standards, so this will be something you have to research about your particular area. In this case, you’ll want something that’s been heavily vetted by the relevant members of your organisation, particularly those in charge of maintaining privacy and security, as well as regulatory compliance and reporting standards.
If you are an independent finance professional, you have all the same concerns as a corporate finance manager seeking a hedge fund system or other portfolio management system, as well as a few additional ones like keeping client accounts separate and secure.