K-1 Reporting: The New Way vs. The Old Way

K-1 reporting doesn’t have to take weeks anymore. Firms are turning to online fund reporting platforms that are purpose-built for the K-1 delivery workflow.

8 February 2016


Schedule K-1 delivery doesn’t have to take weeks or months anymore — and it doesn’t have to generate a hefty price tag for in-house labor, materials, and postage (unless you’re still sending hard copies).

Outsourcing the process is one option to reduce the burden of K-1 distribution. While this does relieve staff from having to manage the mailing internally, outsourcing services typically adds more time and cost to get the statements in the mail.

Some firms have turned to email as a faster and less costly K-1 distribution method. However, a wave of new regulations and rules directed towards protecting investors and the confidentiality of their personal information has discredited email and many fund-run websites as unsecure distribution methods.

Luckily, we’ve come a long way from manual report distribution. Firms are turning to online fund reporting platforms that are purpose-built for the K-1 delivery workflow. These platforms make it easier and cheaper for general partners to send K-1s statements and ensure that limited partner’s personal information (such as a social security number) is kept safe. How can you tell if a platform is designed specifically for K-1 reporting? Look for a solution that:

  • Allows you to bulk upload and to split master data files into multiple, investor-specific documents
  • Employs an electronic consent form/splash page for compliance with IRS laws
  • Is intuitive and not overly complicated so that your limited partners can easily adopt it
  • Provides bank-grade security features like information rights management (IRM) and granular permissioning
  • Offers reporting and auditing capabilities (i.e., it reports on who accessed what, and when)

The newer processes for issuing and delivering K-1s electronically has made a world of difference for many firms, in terms of time, and resource-savings. Hopefully they can help your firm too.

Click here for more info on the Intralinks investor reporting platform and it’s unique Filesplit feature. 


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