Cloud Accounting Software for Venture Capital Funds

AccountsIQ has a purpose built version for VC Funds that comes with our consolidation module.  The model is designed to suit early seed and growing companies and it allows the VC to their investee companies onto the right accounting platform from the start.

The key advantages to this approach are:

  • One platform for all companies so you can collaborate with investee companies on a single platform;
  • Develop knowledge of one system for reporting purposes with the ability to use advanced custom reporting using enterprise dashboards and in system reporting;
  • User profiling provides for a strong control environment by restricting access to certain functions and reports.  There is also an audit log to track all logins and transaction as required;
  • Collaboration is a key strategic element to growing businesses and cloud plus workflow approval ensures that the users with the right knowledge and authority participate at the right stage as transactions are being processed in the system.  For example, raising expense claims, purchase orders, invoices and payment runs can allow be put through AccountsIQ approval engine which is emails and note based and captures attachments.
  • Consolidation of a VC’s portfolio together with calculating percentage ownership and foreign currency can all be facilitate within AccountsIQ.  Even if an investee company is using an existing system you can always import multiple trial balances at month end and report accordingly.
  • Reporting as mentioned can be done through native system reports which are extensive, dashboards which are customised by company and user plus a dynamic excel add in which provide for a direct feed between AccountsIQ and excel.
  • The system itself has mid enterprise level functionality from Quotes to invoices, banking integration, workflow approval, project ledger, extensive API library for integration with core systems like Salesforce.  It also has a full stock ledger and can integrate well with manufacturing systems if required.
  • Typically if companies are using anything from Xero, Sage 50/200 to a light and perhaps unnecessary implementation of SAP or MS Navision then AccountsIQ is a usually a great fit.

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AccountsIQ is ideal for VC funds for both their own accounts and those of their investments. A fully functional Cloud Accounting System which offers Multi-Group consolidation (handling any type of group structure including partial ownership), multi-currency accounting (currently there are 43 currencies in live use on the system in 25 tax jurisdictions) and enhanced business analytics for extended reporting and complex/personalised KPI’s. It has been around since 2005 and was specifically designed for the Cloud (very early to market!) and is an in-house system designed and developed by accountants for accountancy professionals.

For VC funds the accounting system can handle the numerous partial ownership structure the VC fund may invest in and can easily consolidate results whereby partial ownership structures are involved (or even groups within groups). In addition, the company invested within does not need to be using accountsIQ (although that increases the benefits as stated below), and consolidation can be achieved by bringing in trial balances which can easily and efficiently be imported through Excel (or other software).

The VC fund can also achieve lower system costs by having the companies in which they invest in to use the software which will achieve economies of scale as they purchase more systems from the product owner. This results in lower costs for the seed companies.

The seed companies can also purchase only the functionality they require (due to the modular nature of the system) and can add to the system as the company grows. This avoids having to move off one system onto another as they outgrow any system (as many companies that VC funds invest in tend to be very High Potential Start Up companies). AccountsIQ is used by companies with revenues from £1m pa to £500m pa, and you only ever pay for the functionality, data storage and user licences required. The system is scalable and can grow with your company meaning no need to ever change system

Additionally, the integration capabilities of accountsIQ means that any in-house IT systems can be integrated into the accountancy system, which will increase the day-to-day efficiency of the company. Many high potential start-ups are too busy managing the day to day operations and need all the efficiency gains they can get. Select a system that takes workload away from you, allowing you to focus on profitability.

Finally, a VC fund that has their seed companies on the system can monitor, in real-time, the results of the seed company. They can spot and analyse issues and successes, offering assistance where it may be required. Cash flow and budgetary analysis can be conducted from the VC fund to assess future issues and funding requirements.

These are just some of the benefits accountsIQ can have for Venture Capital funds and is one reason why numerous VC funds use accountsIQ for both their own accounting systems and that of the companies in which they invest. Ensure that your investments receive the best start that they can possibly achieve and get an accounting system that will benefit both you and them.