Investment accounting data migrations are intricate processes demanding precision and foresight to ensure seamless transitions. Each step is vital to ensuring the seamless transition of investment accounting data while maintaining accuracy, efficiency, and compliance.
When it comes to a successful investment accounting data migration, here are five important steps to consider:
- Define Migration Goals and Scope: Begin by clearly defining your investment accounting migration goals and scope. Identify the specific data you need to migrate and establish the desired outcome of the migration process. This step involves understanding the existing system’s limitations and the requirements of the new system. Continuously check back to ensure alignment with the agreed scope between the parties.
- Assess Data Quality and Cleanse: Before migrating the data, assess its quality and cleanliness. Identify any data inconsistencies, errors, or redundancies that may impact the migration process or the accuracy of the migrated data. Develop a plan to cleanse and reconcile the data, ensuring it meets the required standards.
- Develop a Migration Strategy: Create a comprehensive migration strategy that outlines the approach, timelines, and resource requirements for the migration process. Consider factors such as data mapping, data extraction, data transformation, and data loading. Define the migration sequence, dependencies, and resource allocation.
- Test and Validate: Prior to the actual investment accounting data migration, conduct thorough testing and validation of the migration process. Create test scenarios and use sample data to simulate the migration and verify the results. This step helps identify any issues or discrepancies and allows for necessary adjustments or corrections before proceeding with the actual migration.
- Execute and Monitor: Once you have completed the testing and validation phase, execute the migration process according to the defined strategy. Monitor the migration process closely, ensuring that data is transferred accurately and completely. Have a contingency plan in place to address any unexpected issues that may arise during the migration. Continuously validate and reconcile the migrated data to ensure its integrity and accuracy.
Focus on Investment Accounting Data and not systems:
Before embarking on an investment accounting data migration, it’s crucial to define clear data requirements and establish comprehensive data mapping. This involves:
- Identifying and documenting data requirements, Day in the Life (DITL) processes, and definitions necessary for capturing Investment Accounting transactions, corporate actions, fee accruals, and fund distributions into Investment Accounting valuation.
- Conducting a thorough review of current processes and comparing them to the Target Operating Model (TOM) to identify areas for improvement in data automation, accuracy, quality, and timeliness.
- Confirming security criteria as both a key means of understanding portfolio and instrument coverage and ensuring all setups are complete prior to migrations, with appropriate processes in place for future security creation and amendments.
- Crafting detailed requirements and reports to guide the migration process effectively.
Recommendation:
Investment accounting data migrations require meticulous planning and execution across various stages. By starting with clear requirements definition and thoughtful design and planning approaches, organizations can set themselves up for success in achieving operational readiness for their investment accounting processes.
Investment accounting migrations are complex, and the risks are many and varied. If your firm is considering such a project, here are reasons why our Prodktr Segue SaaS and managed services should be part of your considerations:
- Implementation Speed: SaaS framework and intuitive codeless setup mean reconciliations can be up and running very quickly.
- Systems Support: Advanced integration framework interacting with the world’s leading cross-asset capital markets service and system providers including SS&C, Enfusion, Murex, and Fund Administrators.
- Data Library: Cross-asset, front to back. Pre-configured Segue library, including derivatives, fixed income, equities, foreign exchange, and private asset classes, including market events.
- Multi-way reconciliation: Fully integrated transaction, position, pricing, and P&L matching with risk control and audit features including aging and approval hierarchy.
- FinTech SaaS and Managed Service Expertise: Supported and managed by experienced Investment Accounting specialists.
Contact Prodktr Segue today to explore how our managed services, augmented with AI-powered data recognition and processing, can support your investment operations effectively.
Stay tuned for the next part in this series, where we’ll explore the remaining steps of this journey.