Managing bookkeeping for family Office
A 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. A 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 a 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.
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.
