Starting or creating a family office
What Reporting Responsibilities Should Be Assigned Before the First Report Is Due?
Short answer. Name who gathers each source record, prepares the report, checks figures, approves distribution, and answers family questions. Set the reporting date, report content, due date, and escalation route in advance. Clear ownership helps the office provide consistent information and catch missing records or open questions before the report reaches the family.
Set report duties before the first due date. Name who prepares and reviews each report, approves its release, sends it, and handles follow-up. This helps the family receive consistent information and lets the office find missing records or open questions before sending the report.
Define the Report and Its Schedule
Agree on the report's purpose, audience, reporting date, and level of detail. Decide which entities and accounts it covers, along with whether to include assets, liabilities, cash activity, investment performance, commitments, or open issues. Match the content to the family's needs and the office's agreed scope. Do not promise figures or analysis the office cannot support with records.
Set a calendar by working back from delivery. Allow time to request statements, enter information, reconcile discrepancies, review significant changes, and obtain approval. Specify what happens if a provider misses a deadline or a valuation is unavailable. Mark estimates and unresolved items clearly so readers can tell confirmed information from items needing follow-up.
Assign Each Step to an Owner
Name the person who requests statements and reports from banks, custodians, or advisers. Assign a preparer to compile and organize the information, a reviewer to check totals and exceptions, and an authorized person to approve distribution. Identify who sends the report securely, maintains the archive, and answers family questions. In a small office, one person may hold several duties, but each responsibility still needs to be clear.
For investment reporting, specify who monitors holdings and performance, who presents material changes, and who coordinates with the investment committee or family members making decisions. For accounting and tax records, name the office contact and the outside CPA or other adviser responsible for their part. Consult your attorney or CPA when legal or tax-specific content needs review. Record the office's chain of command and reporting duties in its procedures.
Review and Improve the Process
Keep a checklist for every reporting cycle. Track documents received, reconciled items, open questions, reviewer feedback, approval status, and delivery. Store source files and the final report in a controlled location, limiting access to people who need it. After each cycle, note delays or recurring data gaps and adjust the schedule or provider requests.
The reporting process connects to other recurring office work, including mapping processes before opening, collecting information from banks and advisers, and reconciling information from several institutions. Keep duties simple enough for staff to follow and clear enough for a backup person to take over when needed.
Additionally, single family offices prepare a weekly, monthly, or quarterly report to send to the family.
Sources: How to Start a Family Office, The Single Family Office. Informational only, not financial, legal or tax advice.