Lack of clarity and transparency around financial planning is an issue many organisations have to deal with, but family offices have an extra layer of complexity. A typical family office is often linked to multiple banks for each family member. Non-bankable assets like real estate, private equity and passion investments make things even more complicated, especially when some are kept in a different jurisdiction from the office itself.
For accurate financial planning, this information needs to be easily accessible to all stakeholders – including multiple family members and their financial planners. The benefits of financial management software for family offices are myriad, offering a clear way to track investments and assets. Cutting-edge financial reporting software exists to make things easier. Here are just four ways family office management software can help.
What are the benefits of financial management software for family offices?
1 – It provides a digital home for the family wealth
At its most basic, financial reporting software acts as an aggregator – pulling data from various sources to provide information in real-time on one easy-to-use dashboard. The best family office management software, like Altoo, takes this one step further. Not only does it pull in data from a variety of sources, but it also offers a secure digital home for the family’s wealth. Everything – from cash to non-bankable assets – is listed together on an intuitive dashboard, where users can view and manage their assets.
2 – Easy access for everyone who needs it
Another benefit of financial planning software for family offices is the ease of secure access for everyone who needs it. By storing data on the cloud rather than locally within a spreadsheet, anyone who needs access to family wealth information can get it via a secure login. Some financial reporting software – like Altoo.io – allows users to create accounts with restricted access to ensure privacy and complete control over who can see what. Providing access to one asset type means that your real estate adviser (for example) only gets to see property-based assets and mortgage data and not other investments. This gives them the ability to dive deeper and offer data-driven advice without compromising confidentiality.
3 – It takes the guesswork out of financial planning
In family offices, assumptions are often made based on presumed net worth. It can be challenging to get up-to-date data from everyone involved. Another issue is that complex private wealth can be tricky to track. Family office wealth management software puts everything up front, with up-to-the-minute data giving financial advisers a complete view of your asset landscape. They can then make informed decisions about where the family office should be looking to invest going forward.
4 – Financial management software makes succession planning easier
In the past, succession events would require a massive amount of paperwork: including statements, spreadsheets and copies of documents. Thanks to the consolidation of data within financial reporting software like Altoo, everything is already in one place. Everything runs more smoothly without time-consuming compiling.
