The U.S. boasts an estimated 3,000 single-family offices, each handling between $1 trillion and $1.2 trillion in familial assets, according to research from Capgemini. These unique entities have multiplied in recent years, with wealthy families across the country taking their assets out of the hands of money managers and pouring them into private corporations that operate at their behest, The Wall Street Journal reported. However, this financial strategy is not without its challenges. The marketplace continues to grow in size and complexity. There are quite possibly more investment opportunities available than ever before. But as lucrative ventures accumulate, so too does risk.

 

With this state of affairs in mind, single-family office executives must optimize their operations and ensure that the entities they manage live on for generations to come. A significant number are turning to technology in an effort to extend the life spans of their organizations. These tools allow them to meet new regulatory expectations surrounding privacy and tap into the the ever-expanding global market. There are, of course, numerous options available to single-family offices looking to reshape or increase their information technology footprints. However, few are as powerful as Sage Intacct. This cloud-based accounting platform equips the wealthy and their organizations with the tools they need to cultivate return-generating portfolios and streamline the data-infused backend operational workflows that facilitate sound investment.

 

Providing data-based insights

The average single-family office operating in today’s economy manages a wide-ranging portfolio containing assets of all kinds, according to analysts for Bloomberg. From real estate and direct venture capital to commodities and hedge funds, the assets under the purview of these entities vary wildly. Single-family offices with manual processes in place or legacy accounting systems might be able to see how these items perform on the market individually. However, generating these figures takes time, and risk of error is high. This situation is less than ideal in the modern economy where investors must have access to accurate financial insights to adjust to sudden shifts and plan for the future.

 

Sage Intacct enables single-family offices to access portfolio data in real-time via an automated dashboard. Here, executives can get an accurate idea of how their portfolios are performing and pinpoint the data they need to make required adjustments.

 

Facilitating expansion

The continued development of the global economy incentivizes foreign investment and expansion. In fact, an estimated 21 percent of U.S.-based single-family have added domestic and international branches over the last two years, Bloomberg reported. However, considerable risk accompanies such a move, especially for organizations with stiff operational structures centered on antiquated accounting tools. Single-family offices that attempt to grow with these processes in place often counter back-of-house difficulties that worsen as their small-scale systems buckle.

 

Sage Intacct facilitates expansion via a scalable, cloud-based infrastructure that can expand with the business. Additionally, a robust multi entity consolidation module allows single-family office leaders to manage accounts for branches in any location.

 

Together, these features equip single-family offices with the tools they need to navigate today’s economy and optimize for future success.

 

Is your organization interested in adopting Sage Intacct in an effort to modernize operations? Here at The TM Group, we have been managing Intacct implementations for decades, providing businesses of all sizes with customized services designed to match the market. Connect with us today to learn more.