Family offices often operate with multiple entities, each with its own unique accounting requirements. From investment holding companies to family-owned businesses, the complexity can be overwhelming. However, with tech evolution, innovative service providers can ease the burden. In this article, we discuss the challenges faced in family office accounting and highlight the benefits of using accounting software to streamline operations and successfully manage multiple entities. We also explore key considerations when selecting the right accounting software for family offices.
Managing multiple entities
Family office accounting can be more complex because it involves balancing the books of multiple entities. Typically, family offices oversee multiple companies under their umbrella:
Family Office Operations: In most cases, the family office is a separate legal organisation, such as a corporation, partnership, or limited liability company (LLC). While it may be the parent company that oversees the overall finances, it requires its own cash flow, payroll, and bank account.