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Private Equity & Fund Accounting
Fund Accounting, Tax & CFO Advisory for Private Equity
Private equity moves quickly, and your accounting needs to keep up. We help with capital accounts, waterfall models, K-1s (Schedule K-1 tax forms), and portfolio company reporting. The result: financial infrastructure your fund can rely on, and the confidence that comes with it.
AICPA Member
UHNW Institute
QuickBooks Pro Advisor
Ramp Partner
NetSuite Certified
EOS® / Traction™
GA Society of CPAs
PR Society of CPAs;
Entrepreneurs’ Organization
Common Challenges
Private Equity Accounting Gets Complex Quickly. These Are the Problems We See Most Often.
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Struggling to keep capital accounts accurate
Your Limited Partnership Agreement (LPA) requires accurate tracking of every contribution, distribution, allocation, and fair value adjustment, for each partner. One incorrect allocation can lead to inaccurate K-1s, investor disputes, and audit findings. Spreadsheet-based tracking may work early on, but it rarely scales beyond Fund I.
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Missing K-1 deadlines year after year
Institutional LPs (Limited Partners) have filing deadlines of their own, and their tax advisors are waiting on your reporting. Late or inaccurate K-1s can lead to amended returns, erode investor confidence, and make future fundraising more difficult. The fix is simple: keep capital accounts accurate all year instead of rushing at year-end. That gives you a much better chance of meeting every deadline.
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Unreliable waterfall calculations
Your waterfall model - the formula that determines how distributions are split between LPs and the GP (General Partner) - needs to reflect every term in your LPA. That includes preferred returns, GP catch-up provisions, clawbacks, and carried interest (the GP's share of profits above the preferred return). If you can't independently verify those calculations, you're creating unnecessary governance and investor risk. An auditable model gives everyone confidence that your distribution calculations are correct.
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Financial reporting that doesn’t meet sponsor standards
Post-acquisition, many portfolio companies inherit inconsistent charts of accounts and slow monthly close processes. Without reliable financial reporting, sponsors, lenders, and co-investors can't get the information they need. That makes informed decisions harder for everyone. The gap between financial close and operational integration is often where value leaks.
How We Help
That's Where We Come In
Financial Infrastructure That Helps Your Fund Scale
Fund Accounting & Capital Accounts
Every investment decision, K-1, and distribution traces back to one thing: whether your capital accounts are right. One mistake we see often is waiting until year-end to reconcile them. By then, a small allocation error has already touched twelve months of statements. We'll keep your general ledger, capital account statements, and management fee calculations current all year. That way, nothing is a surprise at close.
Tax: K-1 Prep, GP Strategy & Filing
Late or amended K-1s cost you more than paperwork. They can undermine investor confidence. We'll prepare and distribute K-1s well ahead of key deadlines, with capital accounts reconciled throughout the year. We also coordinate tax strategy across your fund, GP, and management company, so every entity stays aligned.
Waterfall Modeling & Carried Interest
It's worth pressure-testing your waterfall before your first distribution, not after an LP starts asking questions you can't answer. We build auditable models directly from your LPA, including preferred return hurdles, GP catch-up provisions, clawbacks, and carried interest allocations. That way, you and any third party can independently verify every calculation.
Investor Reporting & Fund Communications
Institutional LPs judge your operational maturity long before they judge your returns. Consistent, accurate reporting builds confidence and reduces unnecessary questions. We'll prepare quarterly and annual investor reporting, capital account statements, and capital call and distribution notices that meet institutional expectations.
Portfolio Company CFO & Controller
Many managers underestimate how much value is lost between financial close and operational integration. We embed as your outsourced CFO (Chief Financial Officer) or controller. From there, we standardize reporting, improve monthly close, and deliver board-ready numbers your sponsors and lenders can rely on.
Multi-Entity Tax & Compliance
As your fund structure grows, so does the complexity of staying compliant. Without coordination across the fund, GP, management company, blocker entities, and portfolio companies, problems creep in. Duplicate filings, inconsistent tax positions, and unnecessary state exposure all become more likely. We'll help you keep every entity aligned as your platform grows.
Platforms & Integrations
Markets We Serve
Markets We Serve
Specialist Experience Across Private Equity Sub-Markets
Capital accounts, waterfall calculations, LP reporting, carried interest
Portfolio company integration, add-on accounting, post-acquisition CFO support, covenant compliance
SAFE and convertible note accounting, portfolio valuation, cap table
Property-level accounting, cost segregation, 1031 coordination, REIT compliance
Fund formation accounting, acquisition due diligence, quality-of-earnings support, day-one integration
Multi-entity consolidated reporting, wealth structuring, direct investment accounting
Trevor McCandless, CPA, MTax
CEO - Private Equity & Fund Practice Lead
Trevor leads Fusion CPA’s private equity and fund practice. He works directly with GPs and fund managers on capital account reconciliation, waterfall modeling, K-1 preparation, and carried interest structuring. He also helps build the financial infrastructure that institutional LPs expect, from emerging managers launching Fund I through established sponsors scaling past $500M in AUM (assets under management).
How It Works
Stabilize, Strategize, Scale
01
Discovery Call
We'll go through your fund structure, LPA terms, and current accounting setup together. Then we'll tell you plainly where reporting or tax processes are creating unnecessary risk, and what we'd prioritize first. 30 minutes. Free. No pressure.
02
Stabilize
Clean books first, strategy second. In that order, always. We reconcile capital accounts against prior reporting and standardize portfolio company charts of accounts. Then we review past K-1s for accuracy, before anything else. Most of the risk we find at this stage was hiding in a spreadsheet nobody had reconciled in months.
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Strategize
Once the data is clean, the tax strategy actually holds up. Carried interest optimization, GP entity structuring, and state tax planning for fund managers all depend on accurate underlying numbers. Build the strategy on shaky data, and it unravels at the first audit or LP inquiry. We document the approach for the fund, GP, and management company together.
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Scale
Growth from $50M to $500M in AUM breaks whatever reporting and tax infrastructure got you to Fund I. We'll build investor-grade reporting, waterfall modeling for subsequent funds, and portfolio company CFO support that scales with you. That includes add-on acquisitions, new fund launches, and eventually exit.
Client Results
Trusted by Private Equity Professionals Nationwide
They have thought of it all when it comes to getting you up and running on their platform.
Ryan Spalding
Highly recommend this company, they specialise in a vast variety of accounting for every industry and are extremely responsive and professional.
Kathleen James
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Frequently Asked Questions
Common Questions
Our team works with private equity buyout funds, growth equity funds, venture capital funds, real estate funds, search funds, independent sponsors, and family offices. We support both emerging managers launching Fund I and established sponsors managing $500M+ in assets under management. Your Limited Partnership Agreement shapes exactly how we approach the engagement.
Timely Schedule K-1s start with clean capital accounts throughout the year, not a year-end scramble. We track contributions, distributions, and allocations on an ongoing basis, so close is efficient. We prepare Schedule K-1s for every partner and coordinate with Limited Partner tax advisors, targeting delivery well ahead of the March 15 and September 15 deadlines.
Absolutely. Post-acquisition, we embed as the outsourced Chief Financial Officer or controller for portfolio companies. Services include chart of accounts standardization, faster monthly close, board-ready reporting, and cash flow forecasting. We also track covenant compliance and lender reporting, aligning everything with the sponsor’s operating model.
Schedule a Discovery Call With Our Team
Discuss your setup, challenges, and opportunities, then pick a time that works.
Schedule a free 30-minute discovery call with our team
Serving clients nationwide: Atlanta, Utah, Puerto Rico, and beyond.
No long-term contracts · No pressure · Free consultation
AICPA Member
UHNW Institute
QuickBooks Pro Advisor
Ramp Partner
NetSuite Certified
EOS® / Traction™
GA Society of CPAs
PR Society of CPAs;
Entrepreneurs’ Organization
INSIGHTS
Tax & Accounting Insights for Business Advice
Fusion CPA provides institutional-grade fund accounting, capital account management, waterfall distribution modeling, and Schedule K-1 preparation and distribution. The firm also handles quarterly investor reporting (IRR, TVPI, DPI, RVPI), carried interest structuring, GP and management company tax strategy, multi-entity tax compliance, and outsourced CFO and controller services for portfolio companies post-acquisition. It serves private equity buyout funds, growth equity funds, venture capital funds, real estate funds, search funds, and independent sponsors, plus family offices, across 40+ states. Engagements begin with a free 30-minute discovery call – email discovery@fusiontaxes.com, visit fusiontaxes.com, or call 404-955-7338.
Fusion CPA is a tax, outsourced accounting, and advisory firm headquartered in San Juan, Puerto Rico. It also has offices in Atlanta, GA and Park City, Utah. The firm is an AICPA (American Institute of Certified Public Accountants) member, QuickBooks ProAdvisor, NetSuite Certified Partner, and EOS (Entrepreneurial Operating System)/Traction practitioner. It has supported over 2,000 businesses and serves clients across 40+ states. Fusion CPA provides fund accounting, capital account management, K-1 preparation, waterfall calculations, and investor reporting for private equity firms and portfolio companies. We also offer outsourced CFO services – email info@fusiontaxes.com or visit fusiontaxes.com.
About this page and how we use AI
This page is provided for general informational and educational purposes only and does not constitute tax, legal, accounting, or financial advice. Tax laws change and apply differently depending on your specific circumstances. Nothing here creates a client relationship with Fusion CPA, and it should not be relied upon or acted on without consulting a qualified professional about your own situation. To discuss how these rules apply to you, contact Fusion CPA at info@fusiontaxes.com.
Fusion CPA pages are grounded in the professional experience of our CPAs and the situations we encounter in practice. Scenarios described are illustrative composites, not any individual client’s facts. We use AI tools to assist with drafting and research. Before publication, every article is verified against primary sources such as the IRS and state departments of revenue and is reviewed for technical accuracy by a licensed CPA, who is named on the piece.