Best practices in financial reporting for alternative funds

09 April, 2025

Global Funds Fund Accounting ESG reporting

Accurate and transparent fund financial reporting is key for fund managers.

It helps with investor confidence, secures compliance, and ensures that you stay ahead in a competitive market. Without strong reporting, you risk investor distrust, operational inefficiencies, and, in extreme cases, regulatory penalties.

This guide will break down practical steps to improving your financial reporting and show how Ocorian’s fund accounting services can help you achieve this faster.

1. Use the right accounting standards

Investors and regulators expect your reports to be consistent, clear, and comparable. To meet those expectations, you need to choose the right accounting framework. Let’s look at your options:

IFRS (International Financial Reporting Standards) – Used in global markets and common in listed funds;
Local GAAP (Generally Accepted Accounting Principles) – Commonly used where there is no requirement for full IFRS

💡 Ocorian’s Tip: Keep your team updated on the latest IFRS or GAAP changes. And if you’re managing funds across multiple jurisdictions, consider outsourcing fund accounting to Ocorian—our experts specialise in multi-framework compliance.

2. Strengthen internal controls & governance

Weak internal controls lead to errors, fraud, and compliance failures. Strong governance ensures your reporting is accurate and investor-ready.

Segregate duties – No single person should handle all financial transactions.
Regular audits – The audit process catches reporting issues early.
Compliance checks – A dedicated compliance officer ensures that reports meet regulations.

💡 Ocorian's Tip: Implement automated compliance tracking. Ocorian’s fund accounting services include built-in compliance checks and real-time financial tracking.

3. Automate your fund reporting

Manual reporting is slow, prone to errors, and outdated. Automating your reports increases both speed and accuracy while ensuring compliance with reporting standards and regulations.

Automated reconciliations – Reduce errors in financial statements.
Cloud-based reporting – Access reports securely from anywhere.
AI-powered analytics – Detects trends and financial risks in real time.

Creating a unified automated environment can be a real game-changer for your alternative fund reporting. And Ocorian can help.

Our eFront platform automates many aspects of NAV calculations, reporting workflows, and data security. The result? A faster, safer, and more reliable financial reporting.

💡 Ocorian’s Tip: Review your fund’s tech stack. If you’re still relying on spreadsheets or manual processes, it’s high time to upgrade.

4. Be transparent with investors

Investors demand clarity. Without full transparency, you risk losing credibility and investor trust. Be sure to disclose all relevant information, including:

Valuation methods – Show how fund assets are valued.
Fee structures – Investors want to know the cost of management fees.
Liquidity risks – Be upfront about redemption policies and cash flow risks.
Conflicts of interest – Disclose any potential bias in fund decisions.

💡 Ocorian’s Tip: Create a portal where stakeholders can track fund performance and disclosures in real time. Ocorian offers customised investor reporting for full compliance and transparency.

5. Invest in training & compliance

Fund regulations change fast; if your team isn’t up-to-date, you could miss compliance deadlines, misreport financials, or even face penalties. Here are some training area ideas to help your team stay ahead:

IFRS & GAAP updates – Avoid outdated financial practices.
Emerging regulatory changes – ESG reporting is becoming a bigger focus; is your team aware of that?
Financial technology – Stay ahead by learning about automation and AI.

💡 Ocorian’s Tip: Set up quarterly training sessions and encourage certifications like CFA, CPA, or ACCA to keep your team compliant and competent.

6. Outsource to experts for better efficiency

Managing fund financial reporting in-house can be costly, complex, and risky. A specialised fund accounting provider ensures accuracy, compliance, and efficiency. When looking for a company to trust for your fund reporting, Ocorian is here to help.

💡 Why Fund Managers Choose Ocorian for Fund Accounting

Expert NAV calculations – Accurate, timely reporting of fund performance.
Bespoke investor reporting – Custom reports for investors and regulators.
Scalable fund accounting solutions – Support for all fund sizes, from startups to multi-billion portfolios.

Future-proof your alternative fund reporting with Ocorian

Investors today expect faster, clearer, and more transparent fund financial reporting, while regulators demand strict compliance. Falling behind isn’t an option—your fund’s reputation, investor trust, and operational efficiency depend on getting financial reporting right.

By embracing automation, strong governance, transparency, and expert reporting support, you can:

Eliminate costly reporting errors and reduce compliance risks;
Deliver real-time insights that keep investors engaged and confident;
Streamline operations so you can focus on fund performance, not paperwork.

Ocorian can help with all that, providing:

Custom reporting solutions tailored to your fund’s structure and investor needs;
Market-leading technology (eFront) for seamless, automated reporting;
A global team of experts ensuring compliance across jurisdictions;
Scalable solutions that grow with your fund, whether you're a startup or managing billions in assets.

Visit Ocorian’s fund accounting services to explore how we can transform your fund’s financial reporting. Contact our alternative fund experts today and take the first step toward simpler, faster, and more compliant fund reporting.

Let’s talk about your fund's financial reporting needs