As we talked about in Part 1, implementing Yardi Investment Accounting (IA) and/or Investment Manager (IM) can be a field of landmines. Without the right experts, it can take three or four times as long to implement. 

Because of the flexibility offered by the modules, you need to design them well from the start. Otherwise, you’ll have to completely restructure the modules – a long and complicated process. 

Here are 5 hacks to keep in mind when planning your IA and IM implementations to make sure they go smoothly. 

 

  1. Map out your investment structures. Before you implement IA and IM, you should have a good understanding of both your current and future investment structures. The future can be unpredictable, but you’ll require an idea of where you’re going and what you’ll need. This will ensure your system meets your current needs, and can easily grow with your business for years to come.
  2. Avoid cookie cutter transaction approaches. A lot of IM and IA implementers like to follow a standard cookie cutter approach when designing transaction types. Generally, it’s best to stick with a handful of basic types and add more based on your unique needs. Otherwise, you could end up with 300 unused transaction types in your system.
  3. Standardize codes for investors. Internally, you’ll need codes that make sense to you. Additionally, if you’re selling units or other investments using public channels like institutional investment houses, you’ll need a standardized set of codes to keep track of what’s your data and what’s theirs. Otherwise, information could be attributed to the wrong investor. You will also risk not being able to find the information you need when you need it.
  4. Keep it simple. IA and IM can get complicated, but if you keep the design as straightforward as possible, you can avoid unnecessary confusion. Even if you end up growing in ways you don’t expect, keeping the design simple will allow for better flexibility so you’re less likely to need a future system redesign.
  5. Hire the right experts. For someone to be a true expert in IA and IM, they need to have both a solid understanding of the Yardi modules, and of the accounting that goes behind these modules. Even though IM is focused more on investor communication, it’s still only as good as the accounting behind it. The right expert will partner with you to make sure that the system is designed to your exact needs.

 

Of the above hacks, the most important one is getting the right experts. The right people will make sure that you follow best practices, and that your system is designed correctly the first time. Although we’re happy to help clients whose implementations have gone off the rails to get back on track, we’d rather do it right the first time. Get in touch to find out how we can partner with you to make your implementation go smoothly.