How do you define financial clarity for your HNWI/UHNWI clients?

Each one of your HNWI/UHNWI clients has a unique financial situation and looks to you to sort through the details to provide simple, clear reports that are meaningful to their lifestyle goals. Bringing clarity to a potentially complex financial landscape is no easy challenge, especially when each client is so unique.

To achieve that higher level of financial clarity, you need tools that will help you define and deliver. In the ebook 6 Essential Tools to Help You Manage HNWI/UHNWI Clients: Your Guide to Ensure Financial Clarity and Data Security, we help you understand design financial reporting that is focused on the unique needs of each one of your clients.

Built to fit

Your HNWI/UHNWI clients are unique, with diverse sets of portfolio and investment strategies that support very individual lifestyle goals. In the past, financial advisors often believed the only way to get the specific information they needed was to manually enter data from multiple sources into custom made spreadsheets. At Plumb, we are laser-focused on UHNWI clients and understand how emerging technologies, changes to accounting and reporting requirements, and security advances will impact your clients. Our team is dedicated to providing focused reporting that gives you the timely, clear insights that will allow you to be proactive with your clients. We can help you “pull it all together” with tracking and recording of 1099’s, K-1’s, charitable contributions, medical expenses, sales of stock, and all other income. You’ll have all the information your CPAs needs to prepare tax returns at your fingertips.

Agile, intelligent technology

With all the moving parts in the financial affairs of your HNWI/UHNWI clients, you need to continuously monitor and respond quickly. You need agile, intelligent technology to take a proactive approach to managing your client’s financial landscape. Plumb’s extensive experience with UHNWI clients combined with our understanding of Sage Intacct’s intelligent functionality can give you that edge. Tools built into Sage Intacct continuously monitor and analyze financial transactions to identify and alert for discrepancies and outliers—advancing your services from simple accounting to intelligent financial management.

Plumb uses Sage Intacct to automate reporting processes that connect disparate data sources and provide timely, complete information. Consolidation of multiple entities, bill payment, and streamlined financial planning processes all deliver focused reporting through customized, real-time financial dashboards.

Anytime, anywhere access

Financial clarity is only complete if you have the information you need on your phone or laptop anytime, anywhere. Complete transparency through web-based apps allows you to answer your client’s questions instantly. Customized, real-time financial dashboards deliver deeper insights into all areas of your client’s financial affairs. Secure web and mobile-based apps allow you to bring those insights with you safely no matter where you go.

Learn more about financial clarity for your HNWI/UHNWI clients

To help you simplify financial management and reporting your clients, please check out the ebook titled 6 Essential Tools to Help You Manage HNWI/UHNWI Clients: Your Guide to Ensure Financial Clarity and Data Security.

When you entrust the accounting, reporting, and data security details to true experts, you can focus on deeper, personalized, more strategic service delivery to your HNWI/UHNWI clients.

Plumb Family Office Accounting & Bill Pay is a high-touch technology family office accounting and bill pay service provider dedicated to serving the needs of high-net-worth and ultra-high-net-worth clients. Plumb ensures that your client’s bills are paid on time and works in partnership with you to deliver the highest quality data and financial reporting. In addition to our bill pay services, we also provide comprehensive Family Office Accounting support including tracking and recording of 1099’s, K-1’s, charitable contributions, medical expenses, sales of stock, and all other income.

Let’s talk about how we can help you build trusted relationships with your clients.

Plumb Shortlisted for 3 Awards

                                                   

We are thrilled to be recognized by two different organizations for our contributions to the family office accounting and bill pay space this year.

Plumb has been shortlisted for the Technology Innovator of the Year Award at Citywealth’s Magic Circle Awards – and you can vote for us by visiting this link.

We’ve also been shortlisted for the Best General Ledger System and the Best Partnership Accounting System at the Private Asset Management (PAM) Awards. We appreciate this acknowledgement from both Citywealth and PAM.

This recognition comes on the heels of a year of tremendous growth for Plumb Family Office Accounting & Bill Pay, and the development of our proprietary bill pay app. We are in great company as our fellow shortlisted firms are the best in the business, and we wish them all the luck.

We are grateful to our clients, our partners in wealth management, and our incredible Plumb team.

How can you ensure privacy and data security for your HNWI/UHNWI clients?  

High net- and ultra-high net-worth individuals (HNWI/UHNWI) and family offices require a higher level of privacy and security assurances. As a trusted advisor, the tools you use to service your client’s financial needs need to meet world-class security standards. It’s difficult to focus on deeper, personalized relationships when you are constantly worried about protecting the privacy and data security of your clients.

In the ebook 6 Essential Tools to Help You Manage HNWI/UHNWI Clients: Your Guide to Ensure Financial Clarity and Data Security we’ll give you a clear understanding of what kind of security measures you should expect from your accounting and financial management partners.

Work with partners experienced with client privacy

At Plumb, we take security of customer data seriously. Operations are designed to ensure compliance with all data protection laws and regulations. State-of-the-art bank-level security and an in-house IT department provide additional monitoring and oversight. Plumb trains all employees specifically in the privacy best practices that apply to HNWI/UHNWI and family office clients.

Use software with world class privacy protection and data security

Highly confidential financial data requires software housed in data centers that meet high audit standards and are monitored 24/7/365 by security professionals. Security that only a world class software company like Sage Intacct can provide.

Sage Intacct applies the physical, network, application, and data security standards that protect the most private, critical data of your clients. External audits and other third-party certifications ensure financial information will be protected in a highly secure environment. Security features built into the Sage Intacct application prevent unauthorized programs, systems, and users from gaining access to resources and data. World class data centers are monitored 24/7/365.

Consistent quality control measures

Checks and balances are the keystone of professional level accounting and financial management. Quality control measures should ensure that no one person has control over all parts of a financial transaction. When working with a partner to deliver services to your HNWI/UHNWI clients, it’s critical that they can demonstrate how they establish the proper checks and balances in financial management.

Plumb follows a 7-phase process that features segregation of duties, multiple levels of review, and secure access. Using Sage Intacct as the unified accounting platform, transactional processes, consistent reviews, required authorizations, and user access are all systematically applied. Multiple sets of examination provide the checks and balances to prevent fraud and ensure accuracy.

The quality control measures integrated into the Plumb procedures, and the automated processes of Sage Intacct  reduce the opportunities for human error and fraud. Connecting data directly to vendors and other applications reduces the chance of errors due to manual data entry. By working with the experts at Plumb and their experience with Sage Intacct, you can take advantage of secure electronic payment options and timely reconciliations.

Learn more about privacy and security assurance for your HNWI/UHNWI clients

To help you maintain your focus on security as you work with your clients, please check out the ebook 6 Essential Tools to Help You Manage HNWI/UHNWI Clients: Your Guide to Ensure Financial Clarity and Data Security.

When you entrust the accounting, reporting, and data security details to true experts, you can focus on deeper, personalized, and even more strategic service delivery to your HNWI/UHNWI clients.

Plumb Family Office Accounting & Bill Pay is a high-touch technology family office accounting and bill pay service provider dedicated to serving the needs of high-net-worth and ultra-high-net-worth clients. Plumb ensures that your client’s bills are paid on time and works in partnership with you to deliver the highest quality data and financial reporting. In addition to our bill pay services, we also provide comprehensive Family Office Accounting support.

Let’s talk about how we can help you build trusted relationships with your clients.

 

Spending too much time managing bill payment for HNWI/UHNWI clients?

Managing the bill payments for high net- and ultra-high net-worth individuals (HNWI/UHNWI) clients is a time-consuming and often frustrating task. Tracking down potential discrepancies, monitoring fraudulent transactions, working with vendors, and doing regular reconciliations are critical to maintain your client’s trust but take valuable time away from more strategic functions.

By working with a partner who specializes in bill payment for HNWI/UHNWI clients, you can spend less time in the accounting weeds and more time on high-value services. Plumb personal bill payment services handle the details of monthly personal bills and expenses.

Unique client requirements

As a trusted advisor to a special class of clients, you can’t risk working with inexperienced partners. At Plumb, we are laser focused on helping financial professionals like you serve HNWI/UHNWI and family offices. We have a proven track record of delivering bill payment, accounting, and financial reporting services to the clients you serve.

Proven HNWI/UHNWI client bill pay processes

Because bill payment services are one of the most time-consuming accounting tasks for HNWI/UHNWI clients, it makes good sense to consider outsourcing. A turnkey bill pay service should be designed to manage all the details of your client’s accounting, payment, and vendor management. At Plumb, accounts are closely monitored to identify any discrepancies or questionable transactions. Cash flow reporting, expense tracking, and bill payment are handled reliably and securely. Approving bills, viewing bill payment status, and communicating with the Plumb team takes full advantage of modern technology.

State-of-the-art technology supports better reporting

To maintain the levels of service your clients expect, bill payment needs to be managed by experts in both the Family Office space and the best-performing software for this niche audience. Plumb utilizes Sage Intacct  which can provide you with clear, detailed information that allows you to answer questions instantly. The automated processes of Sage Intacct simplify multi-entity consolidations, streamline bill payment, and provide timely reporting—all while reducing manual processes that take time away from higher-level services

Practices and processes to ensure data security

Security must always be top-of-mind for any service you provide to clients. Plumb’s bank-level security practices include real-time, 24/7 network monitoring and detection from in-house IT professionals. In addition to good data security practices, bill payment services should also have tight process controls in place.

Segregation of duties in bookkeeping and financial management provide an added level of security protection for your clients. Sage Intacct’s bill payment platform has checks and balances built in through automated processes. Plumb’s bill payment services include multiple sets of examinations to prevent fraud and ensure accuracy.

Learn more about the tools you can leverage to manage HNWI/UHNWI clients

To help you focus on the most important aspects of working with your clients, including bill pay, please check out the ebook 6 Essential Tools to Help You Manage HNWI/UHNWI Clients: Your Guide to Ensure Financial Clarity and Data Security.

When you entrust the accounting, reporting, and data security details to true experts, you can focus on deeper, personalized, and even more strategic service delivery to your HNWI/UHNWI clients.

Plumb Family Office Accounting & Bill Pay is a high-touch technology family office accounting and bill pay service provider dedicated to serving the needs of high-net-worth and ultra-high-net-worth clients. Plumb ensures that your client’s bills are paid on time and works in partnership with you to deliver the highest quality data and financial reporting. In addition to our bill pay services, we also provide comprehensive Family Office Accounting support.

Let’s talk about how we can help you build stronger relationships with your clients.

 

Confidentiality is King: How Plumb Protects Clients

How do you keep my information confidential?

We are often asked this question by prospective clients, and we are always happy to provide our answer because we are confident in the proven protocols we’ve established to protect our clients confidentiality.

As long-standing experts in the family office accounting and outsourced bill pay fields, and with decades of experience working with high-net-worth-individuals and family offices, Plumb understands that financial privacy and security is of paramount importance.

We proactively protect sensitive data in several vital ways.

  • We have a customized cloud network built on unique specifications, backed on a singular data center that keeps all data stored and safe from localized data loss. This data center is certified PCI 3.0 compliant, HIPAA compliant, and SSAE-16 Type II compliant.
  • We maintain state-of-the-art bank-level security and an in-house IT department that provides constant monitoring and oversight. Our vigilant IT department educates and updates our meticulous Plumb team on cyber-safety on a regular basis.
  • We have strict supervision over internal access to client information.
    • Only select designated Plumb team members have access to client records.
    • Only our Executive Team has wire and other approval rights.
  • We focus on a clear segregation of duties among our team.
    • This provides not only protection of confidentiality, but also the essential checks, balances, and oversight that only multiple reviews and sets of eyes can offer.

We pride ourselves on our effective and all-important quality controls, security measures and confidentiality guardianship. Please let us know how we can assist you in your family office accounting or bill pay needs.

Plumb Family Office Accounting delivers financial peace of mind by assisting high-net-worth individuals and family offices know where your money is going, so your trusted advisors can effectively manage it. We work in partnership with your team — including wealth, CPA, and other advisors — to provide the highest quality of data and financial reporting to establish a holistic view of your assets and financial holdings. This gives you true control of your wealth and establishes the foundation for effectively implementing your financial strategies.

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Understanding the Accounting Needs of Hedge Fund and Private Equity Investments

Hedge Funds and Private Equity Investments have a few similarities but have different end-goals.

They are similar in that they:

  • Typically appeal to high-net-worth individuals due to the high cost of entry.
  • Are often structured as limited partnerships.
  • Both pay managing partners in a similar fashion: with management fees as well as a percentage of the profits earned.

One other key similarity between the two is that the accounting of both types of investments require specialized experts who are trained and knowledgeable about the nuances involved in these complex investment platforms.

This article will explain the differences between hedge funds and private equity funds as well as the accounting requirements necessary for reporting on these investments.

First, let’s dive a little further into the definitions – and the differences between – hedge funds and private equity funds.

Hedge Funds

Hedge funds are actively managed alternative investments that use pooled money and an assortment of strategies to earn returns for their investors.

The goal of a hedge fund is to get the highest investment returns possible as quickly as possible and they are focused on short-term profits. Hedge Funds are not regulated by the SEC. These types of funds are viewed as riskier than others for a few reasons:

  • They require a significant minimum investment or net worth to participate in the fund.
  • They employ risky investment strategies and often rely on borrowed money.
  • They expect high returns in a short period of time.

business documents on office table with smart phone and digital tablet and graph financial with social network diagram and man working in the background-1

Private Equity Funds

Private equity funds are the funds used by investors to invest directly in companies. They might purchase a private company but are equally as likely to purchase stock shares of publicly traded companies. These funds are focused on long-term earning potential.

Unlike hedge funds who are only required to make a one-time investment, those who invest in private equity funds are required to invest their capital whenever called upon to do so.

Even still, private equity investments are seen as less risky than hedge funds because of their focus on long-term viability and returns. They typically seek to purchase a controlling interest in a company, and then bring on new management or provide guidance to the existing management team of that company. Their aim is to improve profitability with the ultimate goal of selling the company after their improvements have been implemented, and the increase in profits has been realized.

Hedge Fund Accounting

The accounting related to hedge funds requires the compilation of all brokerage statements that reflect on the fund. Every investment must be accounted for and included.

In addition, hedge fund accounting will help to determine the break periods. Or, in other words, the accounting helps to regulate the timing of when earnings made by the fund will be paid out to the principles and partners of the fund.

Perhaps the most important report issued by a hedge fund accountant is the NAV, or the net asset value report. This report is required once a year, and it is used to demonstrate the hedge fund performance record. It is this use that makes it such an important deliverable: it is based on these results that many investors decide where to invest. In addition, hedge fund accountants must also provide the annual income tax reports to the investors of the fund.

Working business woman with global reports and stock market change concept

Private Equity Accounting

Private equity funds must follow the standards set forth by the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB). However, the operations and financial situation of the private equity fund might – and most likely will – require modifications to the accounting format of these standards. This is because these original standards were not created with private equity funds in mind.

Another important aspect to private equity accounting is an understanding of and reporting about the amount of control the fund has over an entity.

And of course, the accounting standards used by the private equity will have an impact on how and what is reported. The US GAAP (generally accepted accounting principles) differs from the UK GAAP, and both can be different from the IFRS (international financial reporting standards).

Plumb Family Office Accounting & Bill Pay has decades of experience working with both hedge fund and private equity investors. We understand the refinement, complexity, and intricacy involved in the accounting required for both investments. If you are a hedge fund or private equity investor – or a financial advisor to a client who is – please let us know if we can help.

Sources

www.wallstreetmojo.com

www.investopedia.com

www.smartcapitalmind.com

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