A good investment management system, like a powerful engine on a seafaring vessel, should propel your business forward. It should give you specific insights you need to spot the storms ahead, help you maximize resources, and be nimble enough to help you navigate the changing currents of the business environment. An investment management system should turn information into insights and give your employees the access they need to make informed decisions. One way to get a good investment management system is to make sure that it has a good system design.
When it comes to investment management system, it is the underpinnings of the system that ultimately determine its effectiveness. Proper system design makes the difference between merely operating from an ocean of data to propelling your business forward with clear reports and meaningful analytics. Start by taking a good look at the ledgers behind any investment management system you are considering buying or using.
Many companies start with using a simple single ledger investment management system like QuickBooks. A single ledger system stores all your business information in one place, which is simple and appropriate for small businesses. Effective systems, designed for the demands of more advanced companies use a series interconnected ledgers. These multi-ledger systems are optimized for analysis and reporting.
For example, accounts receivable is maintained in one place, and comes with detailed transactions for customer data, payment terms and customer credit limits all stored together in that individual ledger. Only summary financial data is stored in the general ledger, which maintains the connections back to the source ledger.
Reporting can be handled from the general or subsidiary ledgers without limitation, and the whole investment management system is optimized for maximum efficiency, scalability and performance. Multiple ledgers are the key to faster closing processes, rich planning, strong audit and control environments, and reporting opportunities, and give the basis for a solution that can grow with your business.