How Intelligent Automation Enables Family Offices to Prepare for the Future

When preserving wealth is paramount, spreadsheets and disconnected technologies often lead to missed opportunities and costly setbacks. Single and multi-family offices need more than disjointed spreadsheets and single-entity QuickBooks files. 

SFO & MFO deserve a tool that not only handles today’s numbers but also prepares you for tomorrow's opportunities and challenges. They deserve holistic and integrated software that provides insight and foresight.

The Role of AI in Preparing Family Offices for the Future

AI might be the biggest buzzword of the decade, but there's a good reason for that. Large language models (LLMs) like OpenAI's ChatGPT and Microsoft's Copilot are transforming how we work across almost every industry and it's only the beginning.

The next leap is AI agents that handle repetitive tasks with a focus on outcomes. Imagine asking an AI agent to complete a task, and it not only executes it but also delivers the desired results seamlessly.

In finance, AI-driven accounting agents can handle straightforward tasks like bank reconciliation, close management, or inter-company transaction splitting with ease and accuracy.

Intelligent automation is changing financial management by going beyond basic tasks to deliver valuable strategic insights. AI and machine learning give family offices the ability to automate repetitive processes, predict future trends, and adapt quickly to changes in the financial landscape. Imagine having a clear picture of where your finances stand today and, more importantly, knowing where they're headed tomorrow.

Example 1: Cash Flow Prediction

Picture this: a family office managing multiple entities and investments, ranging from real estate to private equity and venture capital. One of the biggest challenges is maintaining liquidity—ensuring there’s enough cash on hand at the right moment, whether it’s to grab a new investment opportunity or cover a major obligation. Instead of painstakingly forecasting cash flow with spreadsheets, AI steps in to analyze past data and trends, predicting future liquidity needs with remarkable precision. This means that family offices are not only prepared for upcoming commitments but also ready to pounce on lucrative opportunities without hesitation.

Example 2: Advanced Investment Analysis

Another big win for AI is in investment analysis. Rather than spending hours combing through historical data, AI delivers insights into which sectors are gaining momentum, how macroeconomic factors could affect investments, and which allocation strategies fit the family’s risk tolerance. Picture an AI assistant that knows your family’s unique goals and suggests reallocating resources to an emerging market sector that’s just starting to heat up.

How Prismatic Brings Intelligent Automation to Life

Prismatic is leading the charge with intelligent automation that not only simplifies day-to-day workflows but also sets family offices up for future success.

• Automated Spend Approvals: Forget the endless back-and-forth email chains for expense approvals. Prismatic’s automated workflows let you set up approval hierarchies and thresholds, so routine expenses are approved automatically, and only exceptions need human attention. This means less time wasted on mundane approvals and more time for what truly matters—strategic decisions.
• Inter-Company Transaction Automation: If your family office manages multiple entities, you know how tedious inter-company transactions can be. What used to be an error-prone, manual process is now streamlined with Prismatic’s automation, updating each entity’s records in real-time and eliminating potential mistakes. It’s efficient, accurate, and a huge time-saver.
• Partial Ownership Transaction Splitting: Many family offices deal with partial ownership stakes in assets like real estate or private equity. Manually calculating each family member’s share can be a real headache. With Prismatic, transactions are split according to ownership percentages automatically, ensuring everyone gets their fair share—no more manual math, no more headaches.
• Smart Transaction Importer: One of Prismatic’s standout features is its Smart Transaction Importer, which allows you to import multiple transactions and create journal entries across all relevant entities, effortlessly. It means your accounting team can move away from tedious data entry and focus on analyzing the numbers and providing strategic financial insights.

Using AI to Prepare for the Future

With AI and automation, Prismatic empowers family offices to think ahead by helping answer crucial questions like:

• Will we have enough liquidity to take advantage of a new opportunity six months from now?
• What adjustments should we make to our portfolio today to protect against emerging risks?
• How can we make our spend approval process more efficient to match our changing priorities?

These insights mean family offices can be proactive, using financial management as a tool for strategy rather than just bookkeeping. It's looking forward versus backwards.

More control, visibility and wealth preservation

Family offices need to balance today’s complexities with tomorrow’s opportunities, and intelligent automation is the way forward. Prismatic’s AI-driven tools and automated workflows don’t just cut down on manual work, they provide a clear path to future success.

With automated spend approvals, inter-company transaction handling, partial ownership splitting, and smart transaction importing, Prismatic is designed to transform your family office from reactive to proactive.

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