Broker Dealer Accounting
Accounting & Compliance International (ACI) established its reputation as the leading provider of broker dealer accounting services for securities firms located on the floor of the New York Stock Exchange and American Stock Exchange. ACI offers broker dealer accounting to a substantial number of the New York Stock Exchange member firms, as well as offering broker dealer accounting to firms newly regulated by the Financial Industry Regulatory Authority (FINRA). ACI has strategically positioned itself at the center of the broker dealer industry, whereby over one-third of the broker dealer firms in the United States are located in District 10, inclusive of Manhattan and the immediately surrounding boroughs. Concurrently, ACI offers broker dealer accounting to many firms outside of District 10, both domestic and international.
The broker dealer accounting services ACI offers to existing clients begins with either the infusion of capital for new broker dealers, or an extensive analysis of broker dealer accounting services provided by the accounting firm that had been engaged prior. Our staff of Certified Public Accountants ensures that your financial records comply with the FINRA regulations during the initial phase, making any recommendations so that your firm remains in net capital compliance.
Once the books and records are in compliance with FINRA guidelines, ACI serves as a full-scale broker dealer accounting outsourcing option. Our staff of financial bookkeepers ensures that invoices are expensed into general ledger accounts that have been created with tax implications in mind. Commissions generated are recorded by means of commission reports provided by the client or by analyzing brokerage statement accounts provided by the clearing firms through which the client clears their monthly trades. All necessary schedules are prepared by the ACI staff so that an accurate set of broker dealer financial statements are provided to the client at the end of each month.
In order to comply with FINRA Rule 17a-5, the broker dealer financial statements provided to the clients are then translated into Focus Report Filings, which are required to be filed on either a monthly or quarterly basis, depending on the business model of the broker dealer firm at hand. These Focus Reports detail the broker dealer firm’s profit and loss by revenue and expense category mandated by FINRA. The Focus Report filing also requires the broker dealer to distinguish between allowable and non-allowable assets and differentiate between liabilities that are considered aggregate indebtedness versus non-aggregate indebtedness liabilities. These distinctions are made in order to compute the broker dealer’s net capital at any given point in time.
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 Reconciliation
• Bookkeeping
• Brokerage Statement Analysis
• Financial Statement Preparation
• Preparation of Net Capital Computations
• Focus Reporting
• FinOp
• FINRA Examination Support
• Financial Audit Support
• Tax Preparation
To inquire into ACI's accounting services, contact us at info@acisecure.com.
