Bookkeeping

Bookkeeping for broker dealers is core to our services. Regulatory financial bookkeeping is a driving factor in ACI’s ability to properly service the broker dealer community. Our ability to centralize all accounting functions provides our FinOps with the ability to manage all regulatory reporting for our clients and assist in ensuring capital compliance.

Without this expertise in handling the transactional details of our client’s books and records, the financial reporting would become more challenging.  As such, ACI has employed a team of highly experienced bookkeepers throughout its history.  ACI’s team of licensed Certified Public Accountants (CPAs) and Financial and Operations Principals (FinOps) have decades of comprehensive regulatory reporting experience.  Our bookkeeping team was designed to create a strong system of internal controls and to ensure there are no lapses in coverage when a client needs assistance.  This is achieved by assigning each client to both a primary and a secondary point of contact.  ACI’s bookkeepers are employed full-time and handle a variety of day-to-day functions, as outlined below:

Receivables/Revenues

Revenues are recorded on the accrual basis in accordance with Generally Accepted Accounting Principles (GAAP), and are allocated into clearly identified revenue accounts in the general ledger to maximize the accuracy of financial regulatory reporting. This is important as broker dealers are required to identify revenues by type of security transaction on their FOCUS Report and SSOI – Supplemental Schedule of Income. For all revenues earned and uncollected during a given month, receivable reports are created to reflect the monies due from customers as of month end. Subsequent collections are then recorded to close out these open receivable balances. The maintenance of receivable schedules allows our clients to follow up with customers on unpaid balances due, enabling for better control of cash flow.

Expenses/Payables

Expenses are also recorded on the accrual basis in accordance with Generally Accepted Accounting Principles (GAAP), and are allocated into expense accounts with both the FOCUS Report and SSOI, as well as income tax categories, in mind.  At the end of each month, the bookkeepers collect, analyze and record vendor invoices into the period for which services were rendered.  Part of this responsibility includes understanding the recurrence of vendor expenses and inquiring when invoices may be missing.  The recording of expenses creates a liability from the firm to its vendors, known as accounts payable.  The bookkeepers at ACI maintain a detailed accounts payable schedule of the amounts owed to each vendor so that the management team of each firm can make educated decisions regarding the timing of invoice payments.

Check/Wire Processing

In order to facilitate payment to vendors, ACI’s bookkeepers can issue checks and/or set up wires for processing.  We typically encourage payment processing twice per month, on the 15th and 30th, but will be available to make immediate payments on an as-needed basis.  As an internal control policy, ACI staff will not sign checks and will not release wires without direct approval from internal management.  Our intention is to create ease in the payment process on behalf of our clients without authorizing the disbursement of any company funds.

Payroll

Payroll can be processed internally by ACI or can be facilitated via the utilization of outside payroll providers.  If the client opts for internal payroll processing, ACI would handle the filing of all W-2s, 941s, NYS-45s, and any other applicable payroll forms that need to be submitted on the employer’s behalf.  Firms that opt for this model typically do so because it allows for more flexibility with timing of payroll processing.  For firms that do not need flexibility, we promote the use of external payroll providers or Professional Employer Organizations (PEO).

ACI can assist with payroll processing or can obtain payroll reports for proper recording in the general ledger.  In either instance, we will be involved to ensure expenses are properly categorized for regulatory reporting purposes.

1099s

At year-end, ACI can assist with entity taxation, including the preparation and submission of both Forms 1099 and 1096 to the IRS.  These forms are required by the employer to ensure that certain vendors and independent contractors are paying taxes on the amounts they receive as compensation.  Our internal processes attempt to obtain W-9s during the year for outgoing payments so we can maximize accuracy and efficiency when preparing these forms.

Give us a call at 212-668-8700, or follow the contact form link below to learn more.