Change Your Thinking and Decrease Your Reconciliation Process. – There is Value in Providing Position Only Account Data – Part 2

Another reason to consider position only data is; when you are reporting on held away assets, sometimes getting access to the transactions is not an option. The website does not have them or, if they do, they are not at a level where they can be accurately interpreted. With this type of access it would be better to just pull in the positions and at least provide your client the ability to look at what is in their account on a day to day basis.

The Portfolio Management System has traditionally been the backbone for the investment advisor’s back office, but these systems are transaction based systems and require transactions to complete a holdings report.  What I have been hearing from clients is they want to use their CRM (such as Redtail, Junxure, SalesForce, etc) or their Financial Planning system (such as MoneyGuide Pro) to report the holdings.  By using these systems they can report on all their client financial accounts regardless of whether they have transactions or not. This does not replace the PMS, but compliments it. The PMS is still needed for those accounts that have transactions and calculating a return is necessary. 

ByAllAccounts has made a name in the industry by providing advisors with transactions to populate their PMS to get these comprehensive holdings reports, but sometimes the time and expense to reconcile the accounts where transactions are not needed is too costly. My suggestion is using position only data to populate a comprehensive holdings report. Whether the advisor wants to use their CRM, Financial Planning System or their PMS they can get all the accounts in one place and decrease the amount of time spent reconciling transactions that are not necessary. How to do this in both CRM and FP systems is a matter of importing the positions. Using ByAllAccounts you could do this on a daily basis. How to do this in a PMS system is up for debate. 

There is discussion on whether it is better to just deliver out the old position and deliver in the new or create adjusting transactions to compensate for the changes in the positions. There are some systems out there where there is the ability to add position only data manually, but what if those values could be automatically updated on a daily basis? This will decrease the time your back office spends reconciling accounts and allows you to provide the best, most comprehensive reporting with the least amount of resources. 

You May Also Be Interested In…

Change Your Thinking and Decrease Your Reconciliation Process. – There is Value in Providing Position Only Account Data - Part 1 (Blog post by Karla Paxton, Client Engagement Manager, ByAllAccounts)

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