How a Family Office Helps Busy CEOs

Can you imagine a CEO of a fast-paced, growing company getting up before dawn to pay bills and keep the family accounting straight? Are you wondering if the insurance might lapse or if the lights could go out unexpectedly? It was reported in a Harvard Business School study that “CEOs are always on, and there is always more to be done. The leaders in that study worked 9.7 hours per weekday, on average”.

While paying bills may be the last thing any CEO wants to do, it must be done. For too many leaders, however, early mornings or late nights involve valuable time and effort being taken away from the crucial aspects of building and running the company effectively. Does this sound like you?

Enlisting a family office to help with bill-pay and accounting services offers an efficient and cost-effective way for a company leader to increase productivity. At the same time, routine financial and administrative tasks are handled on their behalf.

A family office can provide a variety of services, depending on the family’s financial situation and needs. Some CEOs want to ensure the bills from household providers, and services are paid on time, while others want more comprehensive reviews of their investments and insights into their budgeting and spending habits.

Enlisting outside help can also help the CEO improve corporate governance by avoiding situations that bring potential disadvantages. While it may be tempting to use the company’s financial team to help with the leader’s personal finances, for instance, this is often problematic.

A public company or venture-funded CEO would not have the luxury of setting up a family office within the company. It would be abhorrent to investors to think their investments paid for such activities.

Some privately held companies create an embedded family office using company staff, but that brings a bevy of attendant issues. Do you want your employees to know your personal financial situation? Do you want key employees, like your CFO or controller, to be distracted from important company business?

There can also be negative tax consequences for deducting expenses for personal purposes, as well as potential staff resentment with having to deal with family matters when employees are trying to build a career in their company roles.

Outsourcing family bill-pay and financial reporting ensures timely payments while offering CEOs more control over what gets paid. Depending on your preferences, you can review every invoice or require approvals above a predetermined amount. You can easily align the family office service level with the complexity of your financial situation and administrative needs.

Instead of waiting for tax documents from bankers, lenders, and wealth management professionals, for instance, the family office can compile this information easily and share it with your tax professional.

A family office frees valuable time to focus on growing your business, reduces stress, and provides peace of mind that routine transactions are being handled efficiently.

Our family office services include timely, relevant, and accurate reporting, internal controls, accounting support, and CFO insight so you can make informed decisions. We’ll work with you to assess your needs, develop operational and internal controls, and help you meet your financial goals.

If you would like to learn more about how a CEO could benefit from a family office, schedule an introductory call with our team.