Fund Administration Basics Every Business Should Know

Posted by Alyanna Tagamolila
Apr 20, 2023
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Fund administration is the collective action that fund administrators do to handle an individual’s or a company’s funds and their interests. It encompasses back-office accounting, financial reports and projections, asset assessment and protection as well as any other support a business may need for fund accountability and compliance. Fund administration and management acknowledges that a company’s funds are integral to its operations which is why it aims to manage the funds in such a way that protects the company’s best interests and sets in place opportunities for further development and growth.  


Since fund administration was first introduced as a management strategy for specific types of funds such as investments, not all businesses think that they should apply it to their company’s operational structure. However, employing fund administration strategies --- especially if done by professionals with a specialized skillset and expertise --- may just be the crucial step your company needs to perform at its best.  


What should you know about Fund Administration?  

As a business, fund administration can apply to your investors (if you have any) and to your in-house management and operations. In this article, we’ll focus on your management team for you to see how it can help your company’s day by day activities 

Read: The Basics of Revenue Projection and Forecasting  


Fund Administration for your business lets your company stay on top of the following: 
Your financial records 

All the ins and outs of your company’s transactions, sales, investment decisions and general cash-flow will always be accounted for. You will always be able to use your records for financial projections and decisions in a snap (for example, if a limited investment opportunity presents itself and you don’t have enough time to analyze raw financial data). This means that you will be able to grab every opportunity and even know what areas in your finances you need to develop at any time.  

Accounting and Compliance 

Fund administration makes sure that all your funds are in compliance with all applicable regulations as well as being accurate in your books, records and statements. This allows you and your investors (if you have any) to know the level of your financial security at all times – keeping everything in transparency between all stakeholders and managers.  

Growth-driven Strategies 

Data is always able to tell a story. When it comes to fund administration, fund administrators can paint a picture for your company’s future by the data that your finances generate. By seeing the picture, fund administrators prepare reports regarding your assets, liabilities and areas for growth for you to make the right decisions geared towards high revenue and investment opportunities. 

Is fund administration good for your business? Overall, fund administration is a critical function that can definitely benefit businesses. Outside from the typical accounting services that all companies need, fund administration is able to provide you with a holistic perspective of your finances and show you all the areas you should take action in – it makes a business’ finances be in-line with the vision you have for your company’s future.  

Read Next: 4 Ways to Manage Financial Risks 


Find the right Fund Administration Experts Today! 

We have a wide expertise in handling the numbers of businesses across various industries and broad experience in using top-of-the-line software to better handle your finances. Contact us today and we'll help you find the right fund administration strategy for your needs. 

Download our Fund Administration guide today and know how we can be your reliable outsourcing partner.  

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Our Outsourcing: How to Make it Work guide explores how you can utilize accounting and finance outsourcing to drive growth to your business and add value to your processes.