Managing bookkeeping for family office
‘Family office’ is an advisory firm that falls under the wealth management section of the finance field. This firm is concerned with serving ‘ultra- high net-worth’ investors who have over the US $30 million in financial wealth. Family office devotes to providing its services to a well-to-do individual or family by making available various outsourced solutions to financial management and investment advice. Therefore, family members completely own and control such firm.
Based on the number of family groups the firm provides its services, we categorize Family Office into two types:
- Single-family office: Designed to assist in the financial needs of a client with a wealth of at least $100 million.
- Multi-family office: Designed to provide the family office services and financial support to over one family group that holds a wealth of or less than $50 million.
Subsections of Family Office, based on the range of services made available to it’s Ultra- HNWIs, are:
- Administrative family office
- Hybrid family office
- Fully integrated family office
With increasing competition with private banks and other wealth management firms in terms of regulatory, operational and technological upgradations; the Ultra-HNWIs in the U.S. and other developed nations resort to opt for family offices. This is because of the trustworthiness and confidence regarding the management of personal fortune; also less preference is given to private banks in comparison with family offices.
Family Office has a better hold on the accounting aspects of its clients by keeping a track of the expenses that recur frequently. Thus, accounting for a Family Office has more competitive ways of dealing with the client’s account in the sense that it can keep a track of recurring expenses. it further enhances this facility by designing a financial statement for the family office.