“Convenience” and “accessibility” are key to any business and life in general. In today’s society, businesses are taking advantage of the opportunities presenting themselves more and more everyday that provide that much needed convenience and accessibility. From Airbnb to Uber, you can go virtually anywhere in the country and count on the convenience and accessibility provided by others’ hard work to locate a place to stay or the best spots to eat in town as you make your way from one location to the next. With these types of services, you can tap your phone a few times and book your weekend getaway at somebody’s guest house, or get details on that evening’s chauffeur whose engine will soon be humming in your driveway.
With the convenience that these businesses offer their users, even financial institutions are starting to embrace the ease of push-button technology. Instead of a guest room or a personalized pickup, banks have developed ways to wirelessly and seamlessly transfer money between parties, deposit checks by snapping a photo, and pay for that latte just by waving your phone in front of a screen.
These are all great solutions for individual people who are looking to make their day-to-day a little easier. Now how can the same principles and outcomes of the successful businesses mentioned above be applied if you are looking to start a fund or maintain investors or investments in your company? Where can you turn when all you’re doing is swimming in accounting spreadsheets, disorganized investor databases, and halfway completed operational plans?
Often, the details of managing a fund, or even the process to launch one, can be daunting, and in order to ensure the highest likelihood of success a different kind of investment and expertise is needed. One of the simplest ways to overcome a deficit in these areas is to hire a fund administrator to handle the complexities for you. This move allows your time and energy to be better focused on other important aspects of running and expanding your business.
Fund administrators are essentially independent third parties that you or your company can hire to handle everything from the mundane day-to-day operations of your fund(s) (accounting, statements and expense pay services, for example) to helping keep you out of hot water with the federal and state regulatory authorities. Some might wonder if it is possible to oversee all of what a fund administrator would do without handing even a fraction of the control over to a third party. While it may be possible in theory to do it all on your own, in practice, welcoming in a fund administrator can save you or your company money, time, and unnecessary headaches down the line. At the end of the day, fund administrators are experts trained to keep your records, finances, and investor information organized and accurate.
Again, one of the key concerns for most people who have held back from hiring a fund administrator is being afraid of losing financial control of their company. What happens when you turn even a fraction of the reins over to a third party? Will the people you hire care about the success of your company as deeply and help foster its growth as judiciously? The reality is that any company operating in the global marketplace today must consider both (A) how to best match and exceed the offerings presented by its competitors and (B) how to evaluate and capitalize on their own unique opportunities for growth. Adding a fund administrator to the mix can help to ensure that both of these priorities are handled adequately by relieving certain other tasks from the management’s to-do list.
While there are certain risks involved for the individual or company partnering with a fund administrator, doing your research and finding a fund administrator who you can trust to work alongside you in handling the administrative tasks associated with your fund(s) is often the most efficient decision, both in terms of time and overall cost. If this sounds like a good investment for you, do not hesitate to contact our firm’s affiliate, Freedom Services, for a more individualized discussion of how to more efficiently run the fund administration side of your business.
Freedom Services is based in Dallas, Texas and is co-owned and operated by Nathaniel Dodson, Esq. of Dodson Legal Group and Karey Rebello of Hensley CPA Firm PA. Freedom Services’ professional team is equipped to welcome any number and range of companies or individuals in need of assistance managing their funds. Offering everything from private equity investment fund services (accounting, management, launching a fund) to general partner services (assisting with attracting new partners to your fund, in addition to daily accounting, bookkeeping, and administrative tasks), to regulatory services (ensuring a fund’s compliance with ever-evolving federal and state rules and regulations), Freedom Services is a trusted fund administrator and a knowledgeable and professional financial partner with a personal touch.
Convenience and accessibility is becoming more and more important in our world today. When it comes to the finances of your company, the expectations should be no different. Above all, anyone looking to launch a fund or to better manage an existing one deserves to have both one-on-one support, a team of dedicated professionals behind them, and the convenience and accessibility so sought after in the world today, in the form of a fund administrator.
If you would like to know more about Freedom Services and its fund administration services, visit their website at freedomadminsolutions.com, or get in touch with Nathaniel at Nathaniel@dodsonlegal.com.