Future-Proof Your Fund Operations: 7 Tips for Choosing Fund Accounting and Administration Software

Automating NAV Accuracy Controls

The accuracy of NAV production is imperative, and any discrepancies can result in substantial financial and reputational harm. Our flagship fund accounting platform in the UK and Europe, Linedata Icon, incorporates automated accuracy controls to ensure NAV calculations are precise and compliant. This offers a “hands-free NAV” approach by automating checks that would be unmanageable manually, thus reducing errors and allowing accounting professionals to concentrate on strategic tasks that deliver increased value to the organization.

Mitigating Operational and Reputational Risk

Operational risk poses a considerable challenge in fund accounting and administration, particularly as funds grow in complexity. The selected software should provide advanced risk management features, including automated exception handling, thorough audit trails, and capabilities to sort and filter data for issue investigation and resolution. The integration of AI and machine learning enables operations leaders to proactively address potential risks before they arise, enhancing compliance and protecting the organisation’s reputation in a tightly regulated environment. Furthermore, the emphasis on managing by exception—requiring human intervention only when issues surface—enables optimal resource allocation and reduces risk.

Access to Data Insights and Operational Analytics

In our data-centric world, actionable insights are key. Fund accounting and administration software ought to deliver comprehensive data analytics capabilities, enabling easy collection, interpretation, and application of data. Linedata Icon, for example, uses predictive analytics to identify potential operational issues by analysing historical data patterns. These capabilities allow for the recognition of trends and early issue detection, like NAV production delays, preventing them from evolving into more significant concerns. Real-time dashboards and customizable KPIs transform raw data into meaningful metrics that drive informed decision-making. Icon’s advanced analytics module empowers both leaders and team members to look beyond immediate operational challenges, promoting proactive process management to boost efficiency, achieve better operational outcomes, and improve client satisfaction.

The workforce demographic is shifting, with a transition from seasoned operations experts to digital natives accustomed to technology at their fingertips. It’s crucial to attract and retain this new wave of talent, ensuring the fund accounting software experience meets their technological expectations and desire for impactful work. We facilitate this by automating routine tasks and incorporating the expertise of experienced workers into digital workflows, thereby streamlining operations and preserving vital institutional knowledge as workforce demographics change.

Ensuring Scalability and Flexibility

As your organisation expands, so does the complexity of your back-office operations. It’s essential to opt for software that can scale with your business, accommodating an increase in funds, transactions, and complex asset types without compromising performance. Linedata Icon stands out in this capacity, supporting clients with over $3T in assets and more than 150,000 transactions daily. Icon’s extensive automated checks and configurable workflows offer scalability that benefits not only large entities but also allows niche players to compete effectively without proportionally increasing their workforce.

Focus on Innovation and Futureproofing

The pace of technological change means that the software you select today must be adaptable to future developments. Our commitment to innovation, including the implementation of AI/ML and operational analytics within our fund administration software offering, ensures that our clients continue to benefit from technological advancements. Icon’s predictive analytics capabilities, which allow for dynamic process improvements and anticipate operational bottlenecks, are just one example of how we are future-proofing our offerings.

Finding a Trustworthy Partner

Choosing fund accounting and fund administration software is not solely about selecting a system; it's about finding a provider that serves as a dependable partner. At Linedata, we are a publicly listed company with over 25 years of asset management and fund operations solutions expertise. Many of our client relationships have spanned decades, and we work closely with customers to deliver solution enhancements that address their day-to-day operational challenges. And while we offer a variety of hosting, outsourcing, and co-sourcing solutions, we are NOT a fund administrator, ensuring you won’t face any conflicts of interest.

The Way Forward

Choosing the right fund accounting software is about addressing today’s needs and positioning your organisation for future success. By focusing on these seven principles—automated accuracy, risk mitigation, data insights, talent attraction and retention, scalability, trustworthy partnerships, and innovation—you can ensure that your software choice will support your organisation’s growth and adaptation in an increasingly complex and competitive industry. Our Icon offering exemplifies these principles, providing a solution that is as robust and reliable as it is innovative and forward-looking. We’d welcome the opportunity to explore your requirements and how we can help you achieve your objectives.

About the author, Michael Galvin

Michael Galvin is Global Product Manager for Linedata’s fund accounting offering. With over 25 years in the industry, he has led the development of core applications, surround technology, and process management solutions for fund administration and investment management firms. Michael began his career as a fund accountant at JPMorgan Chase.