Family offices have distinct accounting needs due to their involvement in diverse investments, complex entity structures, combined with unique family dynamics. Prismatic was built to assist Family Offices with managing these needs on a daily basis. Designing accounting tools that could be especially useful for family offices are at the core of Prismatic.
ERPs are overkill for a family office. Too much software can be detrimental to small finance and operations team.
Family offices need a lightweight, but powerful suite of integrated software tools to help save them time and preserve wealth.
For family offices managing complex structures—often involving various trusts, partnerships, and personal holdings across different currencies—Prismatic can streamline consolidations, currency translations, and inter-entity transactions, simplifying reporting and ensuring financial clarity. Additionally, our emphasis on tailored solutions help our customers by building reports and analyses that can meet the unique requirements of family offices, where customized reporting on investments is essential.
Setting up a family office can be daunting, but it's clear you need the right systems in place to modernize your systems and get off on the right foot.
Prismatic's platform can be well-suited for these offices due to the following key features:
Multi-entity Management
Family offices often manage various entities, such as trusts, limited partnerships, LLCs, and corporations, all requiring accurate and separate financial reporting. Prismatic’s multi-entity architecture allows users to oversee multiple entities within a single system, with consolidated reporting and entity-specific insights. This reduces redundancy and simplifies tracking financial performance across the family office's diverse asset portfolio.
Multi-currency Support
Many family offices hold international investments, which necessitates multi-currency handling for accurate valuation, accounting, and reporting. Prismatic offers seamless multi-currency support, including real-time currency conversion and revaluation options, ensuring accurate, up-to-date figures that align with both domestic and foreign reporting requirements.
Consolidated Reporting and Roll-Ups
Prismatic can automate consolidated financial statements across entities, providing a comprehensive view of the family office's financial standing. This includes the ability to structure efficient CoA, produce consolidated balance sheets, income statements, and cash flow statements that factor in inter-entity transactions, ensuring streamlined reporting and reducing the risk of double-counting or manual errors. This also helps ensure an efficient month-end close process.
Customized Reporting for Investment Performance
Family offices often track performance metrics across diverse asset classes, including real estate, private equity, and public markets. Prismatic’s customizable reporting options allow for investment performance analysis, which can be tailored to track metrics like IRR, ROI, and benchmark comparisons. This customization provides family offices with a holistic view of asset performance and helps make data-driven investment decisions.
Enhanced Security and Access Controls
Given the sensitive nature of family office finances, security is critical. Prismatic offers role-based access, audit trails, and other robust security measures, allowing family office staff to manage who can access, edit, or view financial data. This ensures both privacy and accountability across all users. Things like SOC II compliance and 2FA for all logins are essential for proper security and controls.
Automated Workflows and Efficiency
Family offices manage a high volume of transactions, including distributions, contributions, investment transactions, and inter-entity transfers. Prismatic can automate these recurring workflows, reducing manual input and freeing up time for staff to focus on strategic analysis rather than data entry and reconciliation.
These features can empower family offices by reducing administrative complexity and enhancing the accuracy of financial information, ultimately supporting sound financial decision-making and safeguarding family wealth.
PS. Check out our feature in Forbes
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