Tools for Complex Accounting and Reporting Requirements
The unique and complex accounting and reporting requirements of managing a Family Office with traditional accounting software is a challenge, to say the least. Ownership administration, capital distributions, fair market value adjustments and tax projections frequently require off-system spreadsheets and other tools to manage portfolios. Working with a software system that can handle these and other issues will allow for more time to focus on the real challenges. The administration of investments, specifically cash flow management is a key differentiator in private equity. Investor capital, fees, distribution of gains from investments, dividends or interest is erratic and unpredictable. It is imperative in this asset class to have a system in place to monitor these cash flows reliably and efficiently. With Sikich, Family Office reporting becomes less cumbersome and can be accomplished through the utilization of fully integrated Excel and AI tools.
All the Experts Needed in one place
As one of the top 35 largest CPA firms in the country, we understand the complex accounting and reporting requirements of managing a Family Office; particularly the administrations of investments and cash flow management. Among the top 1 percent of all enterprise resource planning solution partners in the world, and member of Microsoft’s Inner Circle, we’ve developed tools, best practices and implementation methodologies to help Family office companies’ companies better manage their wealth, with compliant, consolidated bookkeeping.
Compliant, Consolidated Bookkeeping
Ownership Accounting
The Sikich Family Office Management system revolutionizes ownership accounting by offering robust internal/external investment management with active/inactive tracking. It provides flexibility in handling capital calls and distributions, automates document creation, and ensures secure storage. The system maintains precise individual ownership ledgers tracking the complete transaction history. It accommodates various methods for managing ownership percentages – automatic, manual, or a blend of both. Lastly, it offers on-demand tax projections for efficient taxation procedures.
Financial Mangement
Our solution features dynamic roll-up/drill-down financial reporting for clear insight into finances at any level. With a flexible, dimension-based chart of accounts, it tailors financial tracking to the unique structure of each family office. The system expertly manages inter-entity transactions with automatic Due To/Due From accounting. Its robust platform seamlessly handles hundreds of entities, bringing efficiency to scale. Furthermore, it maintains actual, fair market value, tax, and statistical books concurrently, ensuring multi-faceted financial oversight—all within a single, integrated software system.
Treasury Management
We prioritize meticulous handling of earnings. Our approach ensures a precise and equitable distribution of earnings. We streamline the process of earnings accruals, offering real-time financial clarity. We’ve also mastered Fair Market Value tracking, delivering current, actionable asset valuations to aid strategic decision-making. Furthermore, our advanced sweep management strategies are engineered to optimize liquidity and investment returns. Central to our system is the seamless integration of these elements, providing a unified, efficient treasury function catered to the sophisticated needs of family offices.
Taxable Income Management
We offer entity-specific taxable income projections using optional annualized actual GL data. By integrating projected K-1 and manual adjustments, we maintain a granular approach to accuracy. Our consolidated income calculation provides a comprehensive view of projected income by owner across any reporting period. Distinguishing between S-Corp and Non-S-Corp entities, we ensure legal compliance and effective tax planning. To deliver a thorough perspective, we deploy multiple projections within the same year. Finally, our interface’s compatibility with major tax preparation software simplifies and streamlines the process.
Global Capabilities
Core to our approach is the centralized issuance of vouchers and checks, distinctly separated by entity to ensure clarity and accountability across borders. We adeptly manage Sales and Use tax accruals, navigating the complexities of varying international tax obligations with precision. Additionally, our robust platform supports Electronic Fund Transfers (EFTs), facilitating swift and secure cross-border transactions. This holistic approach underscores our commitment to delivering seamless financial operations globally, catering to the diverse and dynamic needs of our clients worldwide.
Deployment Options
We have a few options to deploy software to suite the needs of your family office. We can do on-premise or cloud deployments of our software. Depending on your choice, we can implement robust performance reporting.
