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Understanding Capital Wealth Management Software

Feb 16, 2023

Modern financial solutions are powered by cloud-based software. Every bank is online and every business or individual is attached to those online systems. It is common to have an understanding of online banking for anyone that wants to manage their wealth. However, there are many wealth management software solutions to make that easier for yourself or for those who manage it.

Everyone needs to get used to managing their investments, retirements, and transactions in a more efficient way. That is the fundamental ground of capital wealth management, and software makes it much easier. It’s accessible for financial advisors, and can even be used independently.

Learning how to use this software is essential to carry on with modern-day transactions, investments, and planning for future savings.

What Is Wealth Management Software?

Wealth management contains all of your money in any form it takes. For example, cash, real estate, cryptocurrency, stock, etc. It’s not just for people who are considered “wealthy”. Anyone who has money and a long-lasting need to spend it wisely should be invested in managing their wealth.

Wealthy individuals and families are more likely to hire financial advisors. That being said, anyone can hire a financial advisor to manage finances and grow their wealth over time. This includes everything from expected expenditures over a new year to the payments over the last year and how they factor into taxes.

Financial advisors and individuals use wealth management software to help track all of this information. For the most part, these software suites allow users to enter information from their bank account. It then tracks payments made and can be used to calculate write-offs and estimations for taxes. The software can make it very easy to see where funds are being spent throughout the year and highlight trends as they come up. 

They can also help with long-term investments, such as IRAs or other retirement funds. The software can give accurate readings of estimated earnings from interest rates to help calculate a running total of earnings across all metrics. It’s an efficient and streamlined way of showing a client what all of their money is doing. In the hands of a professional financial advisor, it can also be used as a tool to indicate where their money could go in the future and what advice would work best to increase the value over time.

What Is Trust Accounting?

A trust is savings meant for another (trustee) to spend after the trustor has died. These trust accounts have their own rules and systems in place to stay balanced. There are also certain responsibilities a trustee must take on in order to correctly spend their assets. 

Trust accounting factors in all the different laws and other regulations involved in managing funds from a trust account, including guidelines for business expenses and how to correctly tax them. The expenditures from a trust account must be categorized according to their purpose. This way they can be separated into different taxable brackets. Trust accounts are not simple bank accounts, they have their own rules that dictate their use, which is why trust accounting is necessary.

Financial advisors with experience in trust accounts will be able to safely and accurately manage a trust account. That being said, self-use wealth management software can also perform that function. The tracking is much more intensive than standard wealth management. For example, the handling of trust funds is heavily regulated and these funds are controlled by their trustee.

The legal repercussions of misusing that kind of money are more dangerous than mismanaging one’s own finances. Trust accounting software and solutions offer a stronger focus on consistent tracking and management of funds for clients to prevent any issues from occurring. 

Know What You Need

Wealth management is a useful skill for everyone, to ensure they effectively manage their finances and grow their wealth over time. Whether you’re working a stable job and saving up paychecks or managing an investment portfolio with plans to convert it into a trust in the future, you need to know where your money is going to keep issues at bay. Technology has improved to the point where these processes can be automated and done easily through software solutions. 

Wealth management software and trust accounting solutions are most useful for people who have a need to manage their capital but lack the time or the knowledge. It’s one thing to make money, but knowing what to do with it requires a different set of skills.

Not everyone knows how to manage their taxes to their own benefit. CPAs and financial advisors can help fill those knowledge gaps but do so at an extra cost. Software solutions have their own cost and rely on personal responsibility to stay up-to-date and relevant. 

As new types of investments become relevant, such as cryptocurrencies and other alternative assets, the management of wealth will require more sophisticated systems. Wealth management software is useful to anyone who intends to take a higher degree of control with their money, for tax purposes and for self-sufficiency. 

If you are interested in learning about how our accounting platform can support you, book a demo with us here.

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Travis Lander
VP of Customer Success at SoftLedger
Travis is the VP of Customer Success at SoftLedger. Refining over ten years of product management and customer success experience in software, Travis balances short-term execution with long-term vision. He has worked in several roles to plan, develop, and execute projects for both large and small enterprises in crypto, accounting, publishing, automotive, events, government, and lifestyle industries.

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