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DISCLAIMER: The information provided here does not, and is not intended to, constitute legal advice; instead, all information & content are for general informational purposes only.
This article was first published in December 2023 and has been reviewed to ensure it remains applicable for the 2024/2025 season.
Anyone who's experienced the December to March rush in the finance department knows the unique challenges and excitement it brings. This period can be particularly intense for new teams or first-time funds. Below is a checklist tailored for this busy season, though keep in mind that each fund setup varies, so some items might not apply or might need to be added.
Accounting / Reporting
Q4 Reporting: Standard quarterly reporting is expected, with an added emphasis in Q4. This may include detailed portfolio analysis and market outlook. Ensure alignment with your annual financial statements, which may require additional effort due to potential audits.
Annual Financial Statements: Prepare annual financial reports in compliance with local GAAP or IFRS standards. This technical task involves closing accounting books, drafting balance sheets, P/L statements, and notes accompanying these statements.
ManCo Accounts: These should also be prepared annually.
Accounts for Other Entities: Don't forget to prepare annual accounts for any subsidiary entities like SPVs, feeders, blockers, etc.
Audit Coordination: Collaborate with auditors to complete necessary audits for funds, the ManCo, and other entities as required.
Presentation preparation: Optionally, create a summary presentation for the CFO to report on the funds' financial status, based on Q4 findings. This can be a valuable tool for the AGM.
Taxes
Tax work initiation: Identify relevant jurisdictions, understand filing requirements, and begin collaborating with tax service providers.
Filing deadline extensions: Consider extending deadlines where beneficial, such as for US tax work.
Preliminary tax estimates: For late deadlines, provide early tax estimates like K1 estimates to assist LPs with their tax preparations.
Regulatory Filings and Updates
Regulatory Status Review: Regularly review the regulatory compliance of your setup (e.g., ADV, EuVECA). Stay updated on new laws that might affect your operations by checking in with your legal advisors.
Periodic Regulatory Filings: Complete any required annual filings to maintain regulatory compliance.
Admin
Cash Planning: Review and plan the capital call schedule, coordinating with any existing capital call bridge lines. Be able to provide LPs with estimated draw amounts if requested.
AGM Preparation: If not already done, schedule the AGM date and venue to avoid conflicting with LPs' other commitments.
Insurance Review: Regularly reassess all fund-level and operational insurance policies.
Vendor Contract Review: Evaluate key vendor contracts, including those for office services, IT, and travel.
HR and Payroll Oversight: Ensure that all annual HR and payroll tasks are being completed effectively.
Looking Ahead
Despite the workload, remember that the pace usually eases after Q1. Stay focused, and you'll make it through to a more relaxed August :)
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