Bookkeeping for Your Investments-A Complicated Matter

The are many challenging areas of bookkeeping, but none so challenging a your investments. Your investments add a new dimension to record keeping-dividends, stock splits, stock dividends, cash movements in an out of your portfolios. The statements provided by advisors often keep track of investments for information purposes only. Quite often the detail is jumbled and hard to follow. Perhaps the most difficult aspect of the record keeping is a detailed listing of your investments. Not from a fair market value perspective but from historical cost point of view.

Complications arise for private mortgage investment companies that own a large number of mortgages for example. Interest accruals, keeping track of payments, amortization schedules that need to be matched and reconcilaitions of the subledger of individuals mortgages to the control account in the general ledger. All of this is important information and if you fall behind, you're lost.

Don't ask me why, but in my experience it's been a difficult task for investors to manage. This is particularly the case where ayou have a large number of transactions during the course of the year.

So keep on top of it. If you don't, there may be significant issues that arise when you need to liquidate investments, provide payout statements for private mortgages or loans.

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