Nowadays I am using google spreadsheet to track my portfolio. Is there some better software for this? Another problem is that some parts of my portfolio are highly volatile (but I want to keep those parts as long term investments). How often I should keep records of my volatile parts? Nowadays at end of the year I check my volatile investments and make record into my spreadsheet.
If you want to stick to spreadsheets then I recommend Tiller . It connects all of your accounts electronically and injects that data into your own custom spreadsheet. It does cost $ 5 / month. For free alternatives to just track accounts electronically then Personal Capital or Mint are the most popular. I prefer Personal Capital as the connections seem to be more stable and it is more investment and networth focused.
As far as volatile investments go, it depends. If you want to be accurate then include your volatile investment balances as often as you update them (you said annually). If you don't want your income / net worth tracking to be volatile then I suggest tracking the average or expected return of the volatile investments. That will make your charts smoother and may help with future financial planning. Tracking your finances apart from them makes sense too of course.