The process of exchanging information between K-1 producers and receivers is fraught with challenges. See how the Crowe K-1 Advantage suite can help.
Producers must start their process by collecting demographic information through channels such as investor portals, spreadsheets, or even snail mail. Receivers must respond to information requests from each investment manager, repeatedly submitting the same information through different channels that require different login credentials.
The Crowe K-1 Exchange flips the information exchange paradigm from push/pull to subscribe/receive.
There is not a comprehensive system that manages the end-to-end process of data collection and analysis or K-1 creation and distribution. As producers manually move data from their investor portal to K-1 preparation software and on through distribution, errors can be introduced.
No structure or standardization beyond page one means K-1s vary from year to year and across different partnerships.
K-1 recipients struggle with retrieving from the Schedule K-1 the information they need. They often find themselves weeding through reams of unnecessary information.
Conveying thousands of data points through a tiered partnership structure is like an unending game of telephone. Information needed from the first tier of partnership rarely makes it to the last tier without significant alteration.