Starting or creating a family office
What Should a Family Office Be Responsible for From Day One?
Short answer. From day one, assign clear responsibility for the family's agreed priorities, such as financial reporting, cash flow coordination, adviser oversight, and investment governance. Keep the initial scope manageable, name who can approve decisions, and establish a reliable process for records and payments. Set up reporting before expanding services.
From day one, a family office should own responsibilities the family has agreed it needs. Start with work that keeps financial information reliable, decisions accountable, and advisers coordinated. An office that takes on every family request at the outset can lose focus before its basic processes are in place.
Set the Initial Mandate
Write down what the office is responsible for and what remains with the family or outside providers. Common starting responsibilities include gathering financial information, coordinating reporting, managing cash flow processes, organizing records, and maintaining communication with advisers. The office can also help implement the family's investment policy and track decisions, depending on its expertise and authority.
These functions should reflect the family's priorities. If a family needs stronger oversight of investments, it may assign that work to an investment lead or an outside CIO. If administrative coordination is the immediate problem, the first mandate may focus on consolidating information and clarifying responsibilities. My operational processes guide is a useful reference for mapping recurring work before staff begin.
Make Authority and Controls Clear
For each responsibility, specify who performs the work, who reviews it, and who can approve the related action. Document spending limits, payment procedures, investment approvals, and escalation steps. Keep family assets and office funds clearly distinguished in records. Even a small team can separate duties in practical ways, such as having one person prepare a payment and another review it.
Assign ownership for key adviser relationships as well. The office can coordinate requests and record what each provider is expected to deliver. That helps reduce duplicate work and makes it easier to spot missing information. When work sits outside the office, define how the provider reports back and who checks the result.
Build Reporting and Continuity
Set a reporting calendar and agree on the information family members need. The first reports do not need to solve every question. They need consistent definitions, a reliable source, and a clear person responsible for preparing and reviewing them. Create an orderly place for contracts, tax records, estate documents, and account information, with access limited to the people who need it.
Plan for the absence of the office's most important employee, too. Record key contacts and deadlines. Include access instructions so another person can keep routine work moving. This is especially useful when one person has several roles. The governance guide can help the family set out its oversight and decision rules.
Expand Only When the Case Is Clear
Review the mandate after the office has operated long enough to see what work repeats and where the family still experiences gaps. Add a responsibility when it has a clear owner, a defined outcome, and a reasonable cost. Some services may remain outside the office because they require specialized expertise or arise infrequently. Use the provider selection guide when deciding how outside specialists fit into the operating model.
The family should also understand the resources needed to deliver the mandate. The family office cost calculator can support an initial budget discussion. For staffing assumptions, consult the staff compensation estimator. Aim for an office with a manageable scope, supported by a clear budget and defined responsibilities.
Not all family offices have a formal CFO.
Sources: The Single Family Office. Informational only, not financial, legal or tax advice.