Fiduciary Accounting

Fiduciary accounting is, in short, a comprehensive report that analyzes a time period in the life of a trust, estate, or conservatorship. It can also reference the process wherein a fiduciary, such as a trustee, keeps principals up-to-date with transactions and investment policies.

Although some bookkeeping can be done independently, fiduciary accounting can be carefully scrutinized by the IRS or the courts—so any fiduciary accounting must be conducted very precisely. A specific and specialized knowledge of accounting and protocol is crucial to handling a fund that requires accounting of this kind.

What Does Fiduciary Accounting Involve?

Typically, fiduciary accounting requires a high level of transparency between principals and those who are handling the accounts. With this in mind, a careful summary should be prepared that clearly states the purpose and content of the account. Following that, the account should represent information that is integral and important to the principals.

The account will also reflect the value of assets at acquisition, current values, gains, losses, and significant transactions.

Do I Need to Hire an Accountant?

Absolutely. Again, because fiduciary accounting is such a specialized field, it should only be conducted by an experienced accountant. Our accountants at Atherton & Associates, LLP are equipped to assist you with our extensive institutional knowledge about fiduciaries and fiduciary accounting.

For more information about Fiduciary Accounting, contact Atherton & Associates, LLP.