10 Nov 2023

Accounting services for Fund Managers & portfolio management companies

In the intricate world of finance, fund managers and portfolio management companies stand at the crossroads of huge volumes of transactions and managing large assets under management AUM’s. The demand for specialized accounting services for fund managers has seen a significant surge. According to a report by Grand View Research, the global asset management market size was valued at USD 43.4 trillion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 14.3% from 2021 to 2028. This growth underscores the escalating need for adept accounting services to navigate the multifaceted financial landscape.

Accounting services

Amidst this backdrop, offshore accounting services emerge as a beacon of relief and efficiency. The offshore model offers fund managers and portfolio management companies access to a pool of skilled accountants and financial experts, ensuring precision and compliance in managing their financial operations. Offshore accounting services, particularly from countries like India, have been recognized for their cost-effectiveness, high-quality service, and timely delivery. According to a study, India ranks as the top offshore destination, holding a 40% market share in the global outsourcing industry.

Comprehensive Fund and Tax Accounting Solutions

Detailed Financial Statements Preparation

  • Timely and accurate reporting reflecting the financial health and performance of funds.
  • Managed by expert teams adept in US GAAP principles.

Customized Reporting

  • Portfolio Reporting, Asset Tracking, Cash Flow Tracking by Asset, Asset Attribution, and Cost Basis Tracking.
  • Tailored to meet the unique needs of various funds, offering detailed insights and comprehensive data.

Efficient Handling of Accounting and Compliance

  • Reconciling subscription documents to all investments, credit facility reporting, capital account statements, and SEC reporting.
  • Ensuring a smooth and compliant operational flow.

Assistance with Financial Audits and Adherence to Regulations

  • Production of investor K-1 and 1099 forms, e-filing, withholding, and other tax services.
  • Ensuring funds remain in compliance with all tax-related regulations.

Additional Services

  • Handling of complex waterfall calculations and distributions.
  • Precise Net Asset Value calculations and proficient management of general ledger accounting.
  • Comprehensive Tax Preparation and Compliance Services
  • Review of Private Placement Memorandum Tax Section
  • Ensuring all tax-related aspects are in order and compliant with regulations.
  • Preparation of U.S. Federal and State Returns
  • Handling various forms including 1065, 1120, 1120-S, and ensuring timely and accurate submissions.
  • Supporting and Additional Tax Forms
  • Preparation of forms like 8949, 4797, 8825, 8990, 8082, 8832-B, and others that accompany federal and state tax returns.
  • Handling tax reporting and compliance for non-U.S. investors.
  • Preparation of international reporting tax forms K-2 and K-3.
  • Preparation of responses to IRS and state revenue notices, offering and organizing cost amortization, and more.

By offering these comprehensive fund accounting solutions, fund managers can focus on maximizing returns for their investors while ensuring timely and accurate reporting, compliance, and efficient fund management. The subtle touch of expertise and dedicated service echoes the commitment to excellence in fund accounting solutions.

Advanced Technology in Fund Accounting

  • Utilization of Cutting-Edge Software for Efficient and Accurate Fund Accounting

In the world of fund accounting, the use of advanced and robust software is indispensable. The utilization of cutting-edge software tools ensures the efficient and accurate handling of all fund accounting tasks. These tools are designed to handle the complexity and volume of fund accounting tasks, ensuring precision and timeliness in reporting and compliance.

  • Ensuring Seamless Integration and Management of Accounting Tasks

Seamless integration and management of diverse accounting tasks are paramount. The technology used is designed for effortless integration into existing systems, ensuring smooth and uninterrupted fund operations. This seamless integration allows for efficient management and oversight of all accounting tasks, enhancing the operational efficiency of funds.

  • Proprietary Platforms for Seamless Solutions and Swift NAV Turnaround

Leveraging proprietary platforms contributes to providing seamless solutions and ensuring a swift Net Asset Value (NAV) turnaround. These platforms are tailored to meet the specific needs of funds, offering customized solutions that enhance the accuracy and efficiency of fund accounting tasks. The swift and accurate calculation of NAV is crucial for providing timely and transparent information to investors.

By embracing advanced technology in fund accounting, funds can ensure the highest standards of accuracy, efficiency, and compliance in all their accounting operations. The integration of cutting-edge software and proprietary platforms not only enhances the operational efficiency of funds but also contributes to ensuring the satisfaction and confidence of investors. The infusion of technology in fund accounting echoes a commitment to excellence and precision, ensuring that funds operate smoothly and effectively in a competitive and regulated environment.

Expert Team for Fund Accounting

An expert team like KMK is fundamental to delivering comprehensive and impeccable fund accounting services. Experienced professionals, with a deep understanding of the intricacies of fund accounting, work diligently to ensure that all accounting tasks are handled with utmost precision and care. Their extensive knowledge and expertise in the field ensure that funds are always in compliance with the latest regulations, ensuring seamless operations and robust financial management.

  • Continuous Training and Skill Enhancement

To stay at the forefront of the rapidly evolving financial landscape, continuous training and skill enhancement are non-negotiable. The dedicated team undergoes regular training programs to keep abreast with the latest industry trends, regulations, and technological advancements. This commitment to continuous learning ensures that the team is always equipped with the most up-to-date knowledge and skills, enabling them to provide top-notch fund accounting services that meet the highest standards of accuracy, efficiency, and compliance.

In the realm of fund accounting, having an expert team is not just an asset but a necessity. The combination of experience, continuous learning, and a steadfast commitment to excellence ensures that funds are managed with the highest standards of professionalism and expertise, guaranteeing satisfaction and peace of mind for all stakeholders involved.

Clientele Focus

  • Tailored Services for Diverse Funds

In the world of fund accounting, one size does not fit all. Recognizing the unique needs and complexities of different types of funds, services are meticulously tailored for hedge funds, private equity funds, and venture capital funds. This customization ensures that each fund receives the specialized attention and expertise it requires for optimal financial management and compliance.

  • Ensuring Timely and Accurate Services

Timeliness and accuracy are paramount in fund accounting. Ensuring that all accounting tasks and compliance requirements are met promptly and accurately is a commitment. This unwavering dedication to timeliness and precision not only enhances the efficiency and reliability of fund operations but also significantly contributes to high client satisfaction. Clients can rest assured that their funds are in capable and reliable hands, guaranteeing seamless operations and robust financial health.

By focusing on the specific needs of diverse clientele and ensuring timely and accurate services, a foundation is laid for enduring partnerships and sustained client satisfaction, reinforcing the reputation for excellence and reliability in the fund accounting domain.

Navigating Challenges with Offshore Services

Offshore accounting services stand out as a strategic solution to these challenges. With a team of skilled accountants and financial experts, offshore service providers bring in-depth knowledge of international accounting standards and regulations to the table. This expertise ensures seamless navigation through the complexities of regulatory compliance and diverse investment portfolios.

  • Expertise in International Accounting Standards:

Offshore accounting teams are well-versed in international accounting standards, ensuring that financial reporting and audits are conducted in compliance with global norms.

  • Access to Skilled Accountants:

Offshore services offer access to a vast pool of skilled accountants experienced in managing diverse investment portfolios, ensuring accuracy and efficiency in financial management.

  • Cost-Effective Solutions:

Offshore accounting services provide cost-effective solutions, allowing fund managers to allocate their resources more strategically, enhancing their investment capabilities.

By partnering with offshore accounting services, fund managers and portfolio management companies can effectively overcome these challenges, ensuring accurate, compliant, and efficient financial management, paving the way for enhanced investment strategies and portfolio growth.

Benefits of Offshoring Accounting Tasks

Let’s delve into the multifaceted benefits that offshoring to India brings to the table for fund managers and portfolio management companies.


One of the most compelling advantages of offshoring accounting tasks to India is the significant cost reduction. India is known for its cost-effective services, with savings of up to 50% compared to in-house teams in the United States. Offshore accounting services, like those provided by KMK, allow fund managers to access top-notch accounting expertise without the overhead costs associated with hiring in-house teams. This cost-efficiency enables the allocation of financial resources to other critical areas, bolstering the overall growth and development of the fund or portfolio.

Access to the Global Talent Pool

Offshoring to India opens the doors to a global talent pool of accounting professionals. India is home to a large number of highly qualified and skilled accountants, with over 2.5 million accountants and auditors, ensuring that accounting tasks are handled with utmost precision and adherence to global standards. This international collaboration enhances the quality of accounting services, contributing to the robust financial management of funds and portfolios.

Enhanced Focus on Core Competencies

By offshoring accounting tasks to India, fund managers liberate themselves from the intricate and time-consuming aspects of financial management. This liberation allows them to channel their focus and energy toward their core competencies, including investment strategies, fund growth, and client relations. The ability to concentrate on these critical areas, unburdened by accounting complexities, empowers fund managers to drive the success and expansion of their funds and portfolios.

Seamless Scalability

Offshore accounting services in India offer seamless scalability, allowing fund managers to easily expand or contract accounting operations in alignment with their fund’s requirements. This flexibility is invaluable in navigating the fluctuating demands of the financial market, ensuring that accounting operations are always in sync with the fund’s needs and goals.

In essence, the benefits of offshoring accounting tasks to India are manifold, offering fund managers a strategic pathway to enhanced financial management, operational efficiency, and fund growth.

KMK’s Strategic Approach

KMK’s dedicated and experienced team works closely with clients to analyze their pain points and review the financial statements and tax returns of all entities. They develop a solid plan to address these challenges, ensuring quick responsiveness and faster turnaround with an internal SLA of sending out responses within 12 hours. KMK’s team prepares tax returns and delivers K-1’s to more than 500 investors in a timely manner, utilizing automation and BOTs for efficient and organized data extraction and management. Collaboration tools like Quick Books, Bill.com, Expensify, and Carta are used as a complete software stack for comprehensive service delivery.

By leveraging the expertise of offshore accounting services, fund managers can ensure the efficient handling of all accounting and tax-related activities, allowing them to concentrate on enhancing their investment strategies and achieving optimal growth for their portfolios. The strategic advantages of offshore accounting services play a crucial role in enhancing efficiency and accuracy in the accounting processes of fund managers and portfolio management companies.


Navigating the unique accounting challenges faced by fund and portfolio management companies is crucial in today’s dynamic financial landscape. Offshore accounting services, especially those offered in India, stand out as a strategic solution, ensuring precision, efficiency, and cost-effectiveness in handling various accounting tasks including tax preparation and audit support. The multifaceted benefits of offshoring to India, a hub of accounting expertise, include access to a global talent pool and enhanced operational excellence for fund managers.

In the search for the right offshore accounting partner, choosing a firm with a comprehensive understanding of the accounting industry is essential. KMK, with its deep-rooted expertise, emerges as a reliable choice in this context. In conclusion, offshore accounting services are a strategic pathway for fund managers and portfolio management companies, ensuring enhanced efficiency, accuracy, and financial prudence in their accounting processes.

About KMK

At KMK, we understand the intricate accounting needs of fund managers and portfolio management companies. Specializing in tax preparation and audit support, we are dedicated to providing exceptional offshore accounting services that ensure accuracy, efficiency, and cost-effectiveness. Our team of over 450 skilled professionals in India is committed to delivering timely and precise solutions, allowing you to focus on your core competencies and strategic growth.

Navigating the financial landscape becomes a seamless experience with KMK as your trusted offshore accounting partner. Our in-depth industry knowledge and commitment to excellence make us a preferred choice for fund and portfolio management companies seeking to enhance their accounting processes. With KMK, experience the strategic advantage of high-quality offshore accounting services, tailored to meet your specific needs and contribute to your business’s success.

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