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Hedge Fund Accounting, Tax & Administration Services
Hedge Fund Administration Unlike many other countries, there is no legal requirement in the United States to have a hedge fund administrator. There are no regulatory oversights and license requirements for administrators operating in the United States even when they act as "gate keepers" for regulatory purposes. Be careful who you hire as the SEC recently fined a well known fund administration company (Apex). Click Here to Learn More Hedge fund administrators provide detailed NAVs, performance records, brokerage statement reconciliation, tear sheets, and much more. See Sample Investor Statement, Sample Financial Statement, Sample Financial Allocations and Sample Performance Report Our firm offers tax, administration and audit services. Contact Us For Help
Fund Administration Services After your hedge fund is launched, consider how you are going to handle your hedge fund's administration. We can handle the preparation of your fund level accounting and annual income tax return filings with Schedule K-1s for a low fee. Our work product includes detailed NAVs, performance records, brokerage statement reconciliation, and much more. Why not focus on what you do best and trade? Our hedge fund administration are offered ala carte, so you can choose what works for you. We offer monthly basis NAVs, performance records, brokerage statement reconciliation, advisory fee billing, etc. Call Hannah Terhune, veteran hedge fund attorney at (307) 213-4732 or email her if you want to discuss these services. Let our staff become your hedge fund's account staff. The back office is the guts of the enterprise. For More Information Click Here We can handle the preparation of your hedge fund's accounting. Using our company for fund administration means there is no additional work at tax time. We provide complete Federal and all applicable State tax returns for the Fund including detailed supporting schedules and Partner/Investor K-1s. Contact Us for Help
Fund Gatekeeper ServicesSome fund managers are required to hire a "gate keeper" for their fund. Investors may feel a sense of comfort with the job of the administrator acting also as a gatekeeper (i.e., controller of the hedge fund's cash movement in and out of the fund's bank and brokerage accounts). We offer excellent gatekeeping services! Contact Us for Assistance
Hedge Fund Audits There are two types of audits a hedge fund manager should consider: a full financial statement audit or a custody audit. The custody audit is less expensive than a full financial statement audit and makes more sense for smaller hedge funds. You may wonder what the difference is between the two types of audits? A full blown, full financial statement audit generally consists of procedures on an entities balance sheet, income statement, partners capital balances, and footnotes under Generally Accepted Accounting Principles (GAAP) at year end. The auditor will opine on the above listed statements and attach that auditor's opinion to them. This is the norm when you look the annual reports of public companies.
RIA Custody Audits A custody audit consists of limited procedures usually limited to confirming cash and investments balances held at custodian broker dealers and banks or investment securities the hedge fund may hold outside of them (i.e, PIPE stock or other private equity that a fund may have in the General Partner's safe). These amounts are then agreed to as the fund's balance sheet amounts on the fund's books and records A one or two page report is issued stating what was performed. No financial statements issued. Contact Us For Audit Services If the fund's manager and located in a state where a "surprise audit" is required, these procedures are also performed at whatever date during the year the auditor during the year. the custody audit satisfies state custody requirements of registered investment advisers have that do not have a financial statement audit performed for the fund. Need help? Contact Us
Call Us First We are experts in international hedge funds and tax. Click on any reference below to our leading articles:
Strategic Hedge Fund Planning by Hannah Terhune. Wilmott Magazine Ltd. (Volume 2013, Issue 63, pages 8-11 January 2013).
Trading Foreign Index Contracts? Know the Tax Rules Before You Trade by Hannah M. Terhune and Roger D. Lorence. Stocks, Futures and Options (June 2005).
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Read leading, cutting-edge articles on hedge funds and taxes by Hannah Terhune, hedge fund and international tax attorney. Her articles are widely published on the Internet and recommended by TheStreet.com and other respected media.
