Private equity firms are private finance firms that invest in high-growth and profitable businesses – They mobilize fund from selected individual or corporate bodies, buy equity shares in small – medium firms ranging from 5% to 20% with the purpose of enjoying steady return on investment for a certain period or selling their investment at a premium.
This article is not about private equity firms but shares useful tips on how a typical accounting software customised for private equity firms should work – using QuickBooks
Investment in shares
In QuickBooks, you can create all the existing equity holding of a firm as an asset (Investment) and add their current value of the shares as an opening balance.
Request For Our Accounting Software ServiceFor over 5 years, I have implemented QuickBooks for more than 152 companies under Retail, Manufacturing, Oil & Gas, Real Estate & Construction, Travels, Hospitality, Corperatives, NGOs, Financial & Service Sectors.
- Mbaire Services Nigeria Ltd(Construction)
- Landmark Centre (Event Centre)
- Mountain Ice Travel & Tour (Travels)
- BTS System (Service)
- Logos Travel Support & Solutions Ltd (Travels)
- Germaine Auto Centre (Autos)
- BD Consult (PR)
- Starlight Nigeria (Retail)
- Temple Private School (Education)
- C. Charles Resources Limited (IT consulting)
- Adeniyi Coker Consultants Limited (Real estate and construction)
- The Nigerian Economic Summit Group (NGO)
- Value Mart Supermarket (Retail)
- Transweb Bureau De Change (Financial Service)
- Wakanow Travels (Travels)
- Vektro Food Limited (Manufacturing & Retails)
- Orient Petroleum PLC (Oil & Gas)
- Plus More
Here is a sample snapshot of how your equity holding:
You can also effect changes in the value of your equity holding on a monthly or annual basis and track unrealised profit or loss via “General Journal Entry”
Sales of Equity Shares
On the sale of equity share in a company, QuickBooks can also track the value of transactions (part or outright disposal) and record cash received (direct credit or cash). You can do this via the “General Journal Entry Window”
Finally, dividend earned which could be reinvested or received as cash is not left out – You can use the “General Journal Entry Window” to treat the transaction.
For more guide, read tips on accounting treatment for trading stock here.
If you have questions or need us to present a demo on how QuickBooks can work for your private equity firm or hedge fund, contact us on 0810-509-0001, 0808-421-9399 or send a demo request to firstname.lastname@example.org