Why FinTechs Should Outsource a Dedicated Team of Fund Accountants for Streamlined Fund Administration Services

The popularity of startups has surged in recent years, especially during the onset of the Covid-19 pandemic where consumer demands and market trends have changed drastically. Given their potential for long-term growth and expansion, startup companies are sought after by venture capital (VC) firms as well as other investors that provide funding in exchange for equity stake.

For startups, specifically those that are VC-backed or are looking to take on an initial seed investment or a Series A funding, a good accounting system is a must to ensure that business is running properly and to de-risk VC due diligence. By having access to accurate financial statements, the growth and cash flow of the startup can also be managed better. 

As a business owner, outsourcing your fund accounting is one way to handle your finances well while optimizing your company’s resources to the fullest. Here are just some of its major advantages:

Cost-efficiency

When you outsource your fund accounting, you not only get to cut on overhead and labor costs, but also scale the services you avail depending on your company’s unique business needs and capabilities in terms of resources, and allow flexibility in hiring people. These are all important given that most startups have only a limited budget to spare when starting. 

Due to the demand of investors for more transparency, it’s also a must to have access to specialized accounting systems such as Quicken Premier, Master Investor, etc., which you can have when you partner with the right outsourcing provider.

Access to expert talents

Reputable outsourcing companies can link you to accounting professionals who are skilled in account management, bookkeeping, and fund analytics, among other expertise needed to manage your fund effectively. With a dedicated team of fund accountants at the helm, you can assure accurate monitoring of accounting processes as well as proper compiling of regulatory financial reports for improved performance and transparency for your investors.

Focus on core competencies

In the initial phases of a startup, a lean core team typically manages essential tasks, constrained by budget and resources. However, as the business expands, establishing dedicated teams becomes crucial, especially for operational functions such as finance and accounting. This proactive approach helps mitigate risks, ensures compliance with regulatory requirements, and addresses investor requests more effectively. Opting to outsource fund accountants aligns with this strategy, allowing you and your team to prioritize revenue-generating activities while benefiting from specialized expertise in fund administration services.

Look for a trusted outsourcing company that can help you build a dedicated Fund Accounting team that has:

• Access to talent through their A+ recruitment process
• Cost saving of up to 70%
• Adaptability in technological advancement
• Established Information Security

Lastly, the right outsourcing partner promises for the following:

• Operational excellence
• Having a great F&A team
• Operational cost savings of up to 70%
• Accuracy and quality
• Timeliness in submission
• Information and data security
• Sense of security and peace of mind

Partnership with Infinit-O

Infinit-O’s mission is to create endless opportunities for your company to realize its full potential.

Let’s work together to build a great Fund Accounting Team.

Infinit-O is the trusted customer-centric and sustainable leader in Business Process Optimization to Small and Medium businesses in the Financial Services, Healthcare and Technology sectors by delivering continuous improvement through technology, data and people.

For more information, visit: www.infinit-o.com