Fund Accounting & Cap Table Reconciliations with Carta

At KMK, we work closely with startups, venture capital firms, and fund managers who rely on Carta to centralize their equity data, automate cap table reconciliation, and produce reliable financial reports. As an outsourced accounting partner, our role is to ensure that every transaction, from SAFE conversions to Series D closings, is reflected accurately and backed by compliant accounting. 

This blog explores how Carta transforms fund accounting workflows and enables cleaner, faster cap table reconciliations—and how KMK brings deep operational expertise to help clients get the most out of their Carta setup. 

Fund Accounting in Focus: Why It Matters 

Fund accounting goes far beyond standard financial recordkeeping. It must accurately track investor contributions, NAV, unrealized gains, fees, carried interest, and waterfall models. This is especially critical in venture and private equity settings, where capital commitments and distributions must align with contractual agreements. 

Inaccurate fund accounting can lead to compliance issues, delayed tax filings, investor mistrust, and financial misstatements. Hence, having a reliable platform like Carta makes a big difference—especially when paired with an expert accounting partner like KMK. 

Cap Table Reconciliation with Carta 

A cap table (capitalization table) details who owns what in a company—covering founder shares, option pools, convertible notes, SAFEs, and investor equity. In venture-backed businesses, cap tables can change rapidly due to funding rounds, option exercises, and redemptions. 

Reconciliation Challenges Without Automation: 

• Discrepancies between legal agreements and recorded data 

• Multiple versions across stakeholders 

• Manual errors in share class allocations 

• Difficulties in modeling dilution across funding rounds 

How Carta Simplifies Cap Table Reconciliation: 

• Centralized Data Repository: Carta ensures all equity information, including SAFEs (Simple Agreements for Future Equity), notes, and RSUs (Restricted Stock Units), is housed in one place. 

• Automated Updates: Funding events update cap tables in real time with proper audit trails. 

• Scenario Modeling: Tools for modeling dilution and future funding scenarios aid in proactive financial planning. 

• Investor Transparency: LPs (Limited Partners) and GPs (General Partners) can access up-to-date ownership data without going back-and-forth. 

• Document Linking: Carta integrates legal agreements, board consents, and tax docs directly into its platform for cross-referencing. 

This functionality allows outsourced accountants like KMK to close books faster, reduce errors, and ensure cap tables reflect the actual legal and financial reality. 

Carta’s Key Features for Fund Accounting 

• Fund Administration Module: Track NAV, contributions, distributions, and carried interest. 

• Waterfall Calculations: Automatically apply complex profit-sharing logic. 

• Compliance-Ready Reports: Generate audit-ready and LP-ready reports with one click. 

• API & Integrations: Connects with QuickBooks, NetSuite, and Excel for seamless workflows. 

Read Also: Startup Fundraising 101: A Deep Dive into SAFE, Convertible Notes, and Equity Financing Options 

How KMK Can Help with Carta-Based Fund Accounting 

At KMK, we provide specialized fund accounting and cap table reconciliation services for venture capital firms, private equity funds, and startups leveraging Carta. Acting as a seamless extension of your finance team, we take over the operational complexity of equity management so you can stay focused on fundraising, deal sourcing, and portfolio performance. Our experienced fund accountants support the full lifecycle of Carta administration, including: 

• Setting up and maintaining Carta environments: We handle initial configuration and ongoing system hygiene to ensure a clean, reliable foundation for tracking equity and ownership changes. 

• Importing legacy cap tables and historical funding rounds: Whether transitioning from spreadsheets or another platform, we import and structure historical data to preserve accuracy and investor history. 

• Performing monthly and quarterly reconciliation: We reconcile Carta records with general ledgers, subscription agreements, and partner allocations to maintain alignment and catch discrepancies early. 

• Matching legal agreements to Carta-recorded data: Our team meticulously reviews equity documents—such as SAFEs, convertible notes, and LP agreements—to ensure Carta reflects contractual terms and investor rights. 

• Generating customized LP reports and financial summaries: We provide clean, audit-ready financial reporting tailored to limited partners, auditors, and internal stakeholders. 

With robust domain knowledge, platform fluency, and a commitment to accuracy, KMK simplifies your equity accounting and compliance burden. From day-to-day management to audit readiness, we help VC and PE clients scale confidently with Carta as a central source of truth. 

Conclusion  

Carta has redefined how modern firms handle fund accounting and cap table management. But to fully leverage its capabilities, you need a partner who understands both the platform and the nuances of fund reporting. KMK brings the technology expertise and accounting precision needed to turn Carta into a powerful driver of your back-office efficiency. Whether you’re a fund manager, CFO, or startup founder—KMK ensures your numbers stay investor-ready, audit-proof, and future-focused.