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Hedge Fund Accounting and Tax Services
Fund accounting, partnership returns, investor K-1s and audit readiness for emerging and established hedge fund managers, led by CPAs.
Running a hedge fund means two sets of numbers that both have to be right: the fund’s investor-level accounting and the management company’s own books and taxes. NexusWorks supports emerging and established managers with fund accounting oversight, partnership tax compliance and the year-end work that keeps the audit on schedule.
Our services for hedge funds
We provide the same core services we offer every client, tailored to how hedge funds operate:
- Tax Filing & Compliance: Form 1065 partnership returns, investor K-1s, Schedules K-2 and K-3, and state filings for the fund, the GP and the management company.
- Tax Planning & Strategy: tax allocations for investors who enter and exit mid-year, trader status and Section 475(f) mark-to-market reviews, and carried interest holding period planning.
- Bookkeeping & Financial Management: monthly books for the management company and GP, with fund records reconciled to the administrator and prime broker.
- Fractional CFO Services: budgets, management fee forecasting and investor reporting for the management company.
- Audit & Assurance: audit readiness schedules, reviews and agreed-upon procedures that keep the annual fund audit on schedule.
Who we work with
We work with emerging managers launching a first or second fund, and for established managers who want a CPA team alongside their fund administrator. We work in the structures managers actually use, including master feeder funds, side pockets and separately managed accounts.
Why the K-1 timeline matters
Investors file their own returns from your K-1s, so a late K-1 becomes their problem as well as yours. We plan the year-end close backward from the K-1 date, agree data deadlines with the administrator early, and use extensions deliberately rather than as a default.
How an engagement starts
- A short call about the fund structure, investor base and current service providers.
- A review of last year’s returns, K-1s and audit adjustments.
- A fixed-fee proposal covering fund returns, the management company and planning.
Hedge funds sit within our work for professional and financial services firms. Managers also use our tax planning, fractional CFO and tax filing teams. See the other fund types we support, including private equity funds and family offices.