Broker Dealer Accounting

Broker Dealer Accounting Overview
ACI believes that regulatory compliance should enhance your business, not hinder it - and that includes compliance with a strong broker dealer accounting program. Over the last 25 years, ACI has built a reputation for providing high quality accounting, bookkeeping and FINOP work as the leading provider of broker dealer accounting outsourcing services to NYSE Broker Dealers. ACI currently provides broker dealer accounting outsourcing services to both floor brokers as well as FINRA regulated broker dealers.  For brokerage firms looking to outsource their broker dealer accounting programs, ACI offers a comprehensive range of services.

Broker Dealer Accounting Summary of Services
ACI's broker dealer accounting services include advising firms on the infusion of capital, reviewing books and records for compliance with FINRA guidelines, ensuring that invoices are paid and expensed in general ledger accounts, analyzing brokerage statement accounts, and overseeing that your firm remains in net capital compliance. In order to comply with FINRA Rule 17a-5, ACI provides focus reports detailing the brokerage firm's profit and loss by revenue and expense category as mandated by FINRA.  The Focus Report filing also requires the broker dealer to distinguish between allowable and non-allowable assets and differentiate liabilities that are considered aggregate indebtedness from non-aggregate indebtedness liabilities.  ACI's broker dealer accounting experts work on your behalf to make these distinctions for an accurate focus report and net capital computations. ACI completes the Focus Reporting cycle by transmitting the Focus Reports via the FINRA Gateway platform.  The financial coordinators at FINRA will then conduct an analysis of the broker dealer accounting records that have been provided by ACI on the client's behalf.  As the provider of broker dealer accounting services, the ACI staff is best equipped to answer any financial questions that may arise.

Broker Dealer Accounting Services include:

Bank Reconciliations
ACI exercises care in reconciling bank accounts on a monthly basis for broker dealer accounting clients. Access to online bank statements ensures that ACI can reconcile bank accounts early in the month and provide accurate bank balances to the client at all times.

Bookkeeping
ACI provides full-scale bookkeeping and accounting outsourcing services. Each client is assigned a primary and secondary bookkeeper to record all receivables, analyze and record invoices into accounts payable, cut checks and process payroll.

Brokerage Statement Analysis
Introducing broker dealer firms that are unable to clear their own trades often opt to clear their trades through larger firms. ACI is familiar with the statements generated by most clearing firms and is trained to accurately analyze & reconcile these accounts for broker dealer accounting clients.

Financial Statement Preparation
ACI produces accurate and timely financial statements for all end users, inclusive of a balance sheet, income statement and general ledger and detailing all monthly activity. Reports are provided to the client within 17 business days of month end, as required by FINRA.

Net Capital Computations
ACI prepares monthly net capital computations and provides guidance as to whether or not to infuse additional capital to avoid regulatory violations. Net capital computations can be performed during the month if net capital deficiencies are anticipated.

Focus Reporting
SEC rule 17a-5 requires all broker dealers to file monthly/quarterly Focus Reports. ACI has earned a reputation as the premier provider of Focus Reporting for New York Stock Exchange member firms and provides Series 27 / FINOP Outsourcing for both NYSE and FINRA broker dealers looking for accounting outsourcing.

FINOP
Brokerage firms are also required to have a Series 27 registered with the firm. ACI assigns one of our Series 27 Consultants to serve in the FINOP capacity for your firm, often saving clients a significant cost burden. A Financial Operations Principal (FINOP) is required for all direct access broker dealer firms regulated by FINRA.

FINRA Examination Support
FINRA conducts an annual review of each member firm to ensure the accuracy & fairness of the financial statements being reported. As the provider of accounting services, ACI prepares all documents required to perform the review and works with the examiners to answer any financial questions.

Entity Taxation and Personal Taxation
ACI prepares and files federal, state, and city entity tax returns for our accounting clients to ensure precision and accuracy in tax planning. We also file hundreds of individual returns for both owners and employees of the clients we service.

Accounting Due Diligence
ACI will review the accounting history and records for potential broker dealer purchases to ensure the firm has previously maintained compliance with FINRA regulations.