KnowLedger, a service that integrates portfolio accounting transactions and gain and loss information into general ledger (GL) journal entries, is unique in the market, Kerry says. The other tools in the market that can do this are owned and run by family offices:
“There are all-in-one solutions that offer a system that is both the portfolio accounting solution and the GL. They compete with KnowLedger in that they transform data from systems into the GL. We can work with any portfolio accounting system and any GL. The client can choose or even change systems, KnowLedger can move the data between them.”
Today, family offices continue to expand their focus toward real-time consolidated reporting, defining a clear mission and purpose, and negating cybersecurity risks. KnowLedger is purposefully built to address these needs. Historically, accountants have entered data into the GL via a slow, error-prone process that wastes their time. KnowLedger can quickly, frequently, and accurately move data into the GL.
“Many family offices input data into their GL weekly or monthly as a very summary level. KnowLedger can sync the data immediately and daily with more detail.”
KnowLedger runs on a rule-based engine called Decisions. The system does not use machine learning, but it’s able to be applied to a great number of situations. It’s designed so that the client picks the tools (e.g., Black Diamond, Addepar, etc.) and the general ledger, whereas the company builds the process in between.
Onboarding Process And Security
Onboarding for Accusource is very involved. It can take as short as two weeks for one client and as long as four months for the other. KnowLedger onboarding is especially involved and time-consuming as they have to write all the rules.
“We’ve found that no firm will be able to provide a file, sheet, or example of all the rules that need to be written, only consuming the transactions will suffice.”
Accusource does not host any client information. It acts as a user and can log in to any server or location. That’s why their main exposure to the clients is their usernames and passwords. To make sure that clients’ accounts are safe and sound, they use an encrypted password vault.
“We do not have data, and that sounds a little crazy, but we purposely build everything we do so as we don’t have the data. In the Apx environment, the client has the data, [and] we’re a user. So we have a partnership if the firm wants to host Apx somewhere else.”