ByAllAccounts is transforming the landscape of WealthTech with the introduction of its open and closed tax lots data.
This premium feature on the ByAllAccounts Data Network represents a significant step forward for wealth technology platforms, aiming to meet the growing demands of advisors and investors for enhanced tax optimization and trading precision.
The significance of tax lot data cannot be overstated, as it is fundamental in optimizing tax strategies, ensuring compliance, and boosting overall investment performance. The integration of such data enables effortless implementation of tax-efficient strategies like tax-loss harvesting and asset location optimization. Moreover, the precision in tracking closed tax lots assists in avoiding unintended wash sales, which can undermine valuable tax-loss harvesting opportunities.
ByAllAccounts’ tax lot data further enriches performance reporting, allowing advisors to include key metrics such as cost basis and unrealized gains/losses. It also facilitates historical analysis, providing a robust foundation for projecting future investment outcomes by examining past realized gains and losses.
The Tax Lot Aggregation feature from ByAllAccounts streamlines the process of data collection, aggregating data efficiently from roughly 200 direct custodial feeds. This comprehensive data facilitates in-depth analysis and reporting, which is critical for platforms seeking to enhance their service offerings. Furthermore, the feature integrates seamlessly with existing systems, thanks to a mature network of custodial feeds, ensuring maximum operational efficiency.
For providers of WealthTech platforms, the advantages of employing ByAllAccounts’ tax lot aggregation are manifold. It not only helps in reducing operational costs by outsourcing direct custodial feeds, thereby freeing up resources to enhance intellectual property, but it also allows emerging platforms to scale rapidly and compete effectively in the market. The established infrastructure of ByAllAccounts guarantees both data accuracy and efficiency, which are essential for both tax optimization and compliance with regulations.
The new tax lot aggregation feature is designed to bolster platform growth and innovation by providing high-quality data that is crucial for various mission-critical investment use cases. Read the story here.
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