Portfolio accounting – a way to improve your business!

Portfolio accounting is a thing that all financial services providers should consider at a full value. The point in portfolio

Portfolio accounting is a thing that all financial services providers should consider at a full value. The point in portfolio accounting is huge and the benefits that it brings are enormous. I am telling you this from my personal experience in a very large financial company. In the beginning my chief did not want to buy any digital products to simplify our work. Not because he is mean or a bad manager, he was just a little bit old-fashioned back in those days….But when the problems have started, he needed to do something and since he used to have so many colleagues and friends in the field that could reach some really good profits and reputations, he decided to listen to them…

We have established a completely new program for our portfolio accounting strategy the one and single IBOR source of truth. We still kept the department we have – without firing someone or minimizing the working time. Everything remained the same except for the fact that in the overall organization portfolio accounting software and system were added. And these are the things the portfolio accounting robotic product made for our financial services provider:

• an accurate demonstration of the investment status
• showing and depict the correct numbers for the following parameters that have their own meaning for any financial company: cash, playable and receivable numbers, fees and commissions, valuation rate, accruals and reconciled holdings
• 100% security for any financial transaction, as well as for the settlements
• auditing at first-class rate and control
• P & L and financial statements
• making a general ledger journal entries
• first-rate decision making is a process that has become easier and faster and this has saved us lots of money and additional expenses we used to pay for!
• Suggestions for new investments were coming all the time without making any of our department to lose time in checking out each of them, because there is a scale with the possible outcomes for any of the suggestions.
• More money and guess what – larger salaries for each of us, the employees…

This list does not show all the benefits from portfolio accounting software. The fact that we have gained so much in just few years is a real proof for that. But also have in mind that different financial companies have different management and accounting issues, which means that portfolio accounting will help each of you in a different way, as well. As one of the leading financial companies in our region, our company has made a statement to remain on this position for years. And we are yet the leaders! With proper portfolio accounting sometimes things get better – even if in the beginning the problems seemed too bad to be recovered with one single software product.

How to Budget Your Money

No matter what your income, keeping certain ‘optimal’ percentages in mind–especially on the big-budget items like housing and transportation–of where

No matter what your income, keeping certain ‘optimal’ percentages in mind–especially on the big-budget items like housing and transportation–of where your money should be going every month offers solid guidelines that will protect you when times get tight and offer you options to save and grow your money when the money’s rolling in. Here’s a breakdown of what I chatted on with Al Roker:

Whether you’re a renter or buyer, put away 30% of your monthly take-home income for housing costs. This includes a mortgage or lease, taxes and insurance.

Transportation should make up no more than 18% of your expenses. If you drive, make sure you count gas, insurance, maintenance and parking. If you use public transportation, include your commuter pass or rail card.

If you have debt, paying it down should not exceed 10% of your monthly income. If you’re lucky enough to be debt free, use this slice of the pie toward something else, like savings, or as an emergency fund.

Give food, toiletries and other things you need on a daily basis no more than 14% of your pie. This is a tricky one, because as food prices go up you will see that it becomes hard to keep your expenses flat and you may have to find the money by borrowing from another slice.

Put 7% toward household costs, such as energy, phone and cable bills. And even though it’s summer now, don’t forget about that massive heating bill that’s coming to your mailbox in a few months. Plan accordingly.

Socking away 10% of your take-home income (or more) for savings purposes is important for two reasons: you can use this money for short-term items like vacations as well as longer-term goals like retirement.

Finally, 11% of the money pie should be allocated for “everything else.” What’s that include? Whatever’s been left out. Charity, clothing, childcare, additional medical costs and other miscellaneous costs.

Use these guidelines to make your own money chart. You might be surprised to see where all that cash is going — and you’ll be able to tell where and when expenses are getting out of whack.