Fund AccountingHow Do I Start A Career In

How do I start a career as Fund Accountant?

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Are you looking for a career in finance?

Well, then there is no better place to be in.

In yet another segment of our, “how do I make a career in…” series, we bring to you the answers of all your questions regarding a career in Fund Accounting.

Read on!



A Fund Accountant is responsible for accounting for an investment portfolio, just as the name implies.

Securities and real estate in an investment vehicle, such as a mutual fund or hedge fund, are examples of these investments. The fund accountant’s job description includes generating timely, accurate, and fund accounting output. Accounting, as we all know, necessitates a high level of concentration. However, you’ll need more than just your undivided focus for this job.

The field of fund accounting isn’t as well-known as that of a CPA or a corporate accountant. Instead, these experts concentrate on managing the finances of a single fund. Generating financial reports, controlling transactions and fund activities, and investment accounting, including tracking yields and interest, are all part of their responsibilities.

The fund accountant serves as the primary point of contact between clients and their employers, which are typically firms that specialize in this type of accounting. That is, they will frequently interact with investment managers, such as hedge fund managers or fund administrators, as well as fund investors and their employers. The job of fund accountants is well thriving in reality. 

Read here, to know about career opportunities in equity research

What is fund accounting? 

It is a type of accounting that prioritizes legal accountability over profit generation.

Organizations that operate with a specific mission or purpose other than to make a profit employ the services of fund accounting. However, there are some significant variances in the fund account job description due to a few factors. While fund accounting varies by profession, its primary goal is to divide an organization into multiple funds. Government funding is the most obvious example here. Funds are distributed according to their intended use, such that education, public works, and other departments each have their own accounting team, and the substance of one fund is not used for the purposes of another.

Who is a fund accountant? 

Fund accountants are largely in charge of the day-to-day accounting for the mutual or institutional funds they are assigned to. They produce timely and accurate fund accounting output, such as net asset values, yields, and distributions for later review, as well as accounting for investment portfolios that include stocks, real estate, or commodities. They create conventional weekly and monthly financial statements and income expense accruals, as well as compute and report net asset values per unit.

Fund accountants analyze several financial variables on a daily basis to assist corporations in determining the price or worth of their funds. They also prepare and report revenue, expense, and item-specific accrual statements, such as a dividend or interest income worksheet, as well as other schedules, such as a T-bill. They keep track of security transactions such as trades, interest payments, maturity dates, and corporate actions. 

What are the requirements to be a Fund Accountant? 

To be considered for this position, you must have certain academic credentials.

To begin, you must recognize that, because accounting is such a strenuous profession, you will require more than simply bachelor’s and master’s degrees to advance. Nonetheless, a Bachelor’s or Master’s degree in Accounting, Economics, or Finance is required.

To gain an advantage, you can opt for a certified public accountant (CPA) certification.

The Association of Chartered Certified Accountants (ACCA) is also a professional organization of accountants (ACCA) that offers great job opportunities in the field of fund accounting.

CIMA or The Chartered Institute of Management Accountants (CIMA) Professional Qualification is equivalent to a master’s degree in accounting and is widely acknowledged as the most relevant worldwide finance qualification for business. That can also greatly improve your prospects for your career.

What skills are needed to be a fund accountant? 

Analytical skills, which are required in conducting cash flow analysis, the ability to reconcile assets/cash balances, the ability to review transactions for accuracy, knowledge of investment products and trading of financial instruments, and a strong understanding of legislative policy and regulations in the financial sector are all required. Instead of it, there is a common skill set for a person in finance accounting which includes the following as per the job description. 

  • fund accounting. 
  • fund management. 
  • unit pricing. 
  • financial reporting.  
  • investment management.  
  • fund administration. 
  • taxation. 
  • commerce.  
  • Microsoft Excel.

How to be a fund accountant? 

To be a fund accountant you need to follow a simple but consistent path of professionalism with a combination of hard work and smart working. The process goes like this. 

  • Complete the Required Education.

Accountant professions often require a bachelor’s degree in accounting or a related subject. Bachelor’s candidates in these programs will most likely take classes in cost, financial, and managerial accounting, as well as auditing and assurance, in addition to general education courses. In short, the above-mentioned academic requirements must be met.

  • Gain experience.

According to online job advertising, the majority of fund accountant companies demand prior experience. A future fund accountant may begin as a bookkeeper, accounting clerk, or entry-level accountant.

  • Become a Certified Public Accountant

Qualifying for the Uniform CPA Examination usually entails completing a degree program with a certain amount of credit hours, as well as work experience; however, requirements vary by state. This exam is divided into four portions, and many states allow individuals to take one section at a time as long as all sections are completed within 18 months.

  • Peruse a career and find the opportunities

Accountants with sufficient experience might rise to supervisory or management positions. Accountants with prior experience may also establish their own accounting firms.

Fund accountant’s salary 

A Fund Accountant’s annual pay ranges between $45,000 and $62,000, based on his overall work experience.

According to the payscale, the national average compensation for fund accountants with 1-3 years of experience is roughly $50,000. Having said that, wages continue to rise in tandem with demand. Accountants saw an average salary increase of 3.6-3.7 percent throughout all stages of their careers in 2016. 

The average salary of a Fund Accountant in India is 4.3 LPA.

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