Families that have worked hard to build and protect their wealth are selective with the family office accounting firm they choose. A successful family office accounting manager realizes that when dealing with exceptionally wealthy families, good enough is not good enough.
For a wealthy family to trust a family office accounting firm to manage their wealth, the firm and its family office accounting manager must be able to deliver the highest quality of service, responsiveness, and results. Anything less is unacceptable.
How Outsourced Accounting Works
The History and Purpose of Family Office Accounting
The concept of family office accounting was born with extremely wealthy families, typically with a net worth over $100 million. In the past, a family office accounting firm would be its own entity, with a CEO, a CFO, bookkeepers, personal assistants, and a staff that would handle all the finances of the different family members. The responsibilities of this office would also include handling personal appointments, booking travel for the family, and handling other matters of this nature.
Historically, this type of accounting office would be at the beck and call of their clients. The office would address anything financial-related, be it purchasing a new vehicle, handling financial transactions for a kidnapping, or getting a family member out of jail.
Typically, a wealthy family has made their money by being business savvy. This is another reason why a higher level of service is expected. While an accounting office of this sort would not usually get involved with the family’s business finances, they would have a keen understanding of the family business and how that business relates to the family’s personal finances. This means that they would be in charge of keeping the family’s taxes updated, organizing charitable giving, and laying out succession planning.
Clearly, the family office accounting manager in charge must be an individual who is well-educated and well-versed financially. They must be knowledgeable in many areas of accounting, finance, law, taxes, and risk management.
The Role of Family Office Accounting Software
A family office accountant plays a valuable and personal role in the financial success of the family. As with everything, technology has changed how a family office accountant and their staff go about their jobs.
Family office accounting software can help accounting professionals provide a tailored service that is delivered accurately and promptly. Not all family office accounting software is created equally. Part of the service a family office accountant provides should include choosing a software solution that is right for the needs of their particular clients.
This could mean that the same accounting firm will use multiple forms of accounting software based on the unique needs of each of their clients. There are a few universal features that all accounting platforms of this sort must have. First and foremost is privacy.
Privacy In Your Software
Wealthy families work hard to build and protect their wealth. Their family office accountant is at the forefront of that protection effort. The last thing they would want is the software used by their accountant to put them at risk of cyber security breaches and data leaks.
Stellar family office software would require stringent password protection and multi-factor authentication. It would work on-premise and in the cloud. It would also offer consolidated reporting, governance, data aggregation, and operational products.
How We Can Help
Fusion CPA is home to a team of specialized family office accountants. We have the experience, discretion, and knowledge needed to accurately and skillfully manage your family’s finances. Our team is also experienced in accounting software solutions, tax planning, and CFO advisory. We know what is needed to help make a success of your family’s finances.
Press contact us to learn more about the services we offer. We look forward to discussing your family’s financial future with you.
This blog article is not intended to be the rendering of legal, accounting, tax advice or other professional services. Articles are based on current or proposed tax rules at the time they are written and older posts are not updated for tax rule changes. We expressly disclaim all liability in regard to actions taken or not taken based on the contents of this blog as well as the use or interpretation of this information. Information provided on this website is not all-inclusive and such information should not be relied upon as being all-inclusive.