FOXCloud: What’s on the Minds of FOX Members – August 2024
The following were the most talked about topics within the networks on FOXChat in August 2024:
Common Payor Account
- Is anyone using a common payor account structure so that all bills and capital calls etc., are coming from one common account and then charged back to the correct entity? I would love to connect our accounting/finance department with anyone who has successfully implemented this in a complex office setting (i.e., more than 40 entities; and many capital calls monthly).
- Has anyone implemented a bill pay system that integrates with Sage Intacct that they really love? We are reviewing a number of options from Sage's list of partners, but we are curious if anyone is using a system they really love.
FOX can put us in touch if you would like to respond privately. (Source: FOPeer) (Source: FOPeer)
- Please contact me to discuss as we have been doing the same analysis and discovery and have some interesting feedback to share.
Parametric Loss Harvest
We have a sizable tax loss harvesting portfolio with Parametric designed to track the S&P 500. Our basis is 15% of market value. Despite having a tracking error of 1.0, the portfolio has underperformed the S&P 500 for the last three years. Dropping the tracking error to (say) 0.5, would trigger significant gains. Given the low basis and poor performance it seems like this investment strategy has run its course.
Curious if other FOX members have run into the same problem and elected to pursue another strategy. If so, please share your ideas. (Source: FOPeer)
- I think tax loss harvesting portfolios work best when there is new capital added systematically/periodically, which would subsequently create adjustments to the basis (typically increasing it). Otherwise, these portfolios lose their tax harvesting capabilities and essentially become index trackers. We are in a similar boat!
Personal/Family Assistant
text (Source: FOPeer)
- We do this through the FO entity and payroll, and where applicable, the family member reimburses the cost to the FO.
- We have all of our family office staff in one entity and household staff in a separate LLC.
Third Party Risk Review
We are starting to do a business review of data security practices and controls of firms that store our sensitive information (external counsel, accounting firms, etc.). We would appreciate any feedback on what other FOs are doing to vet their third-party vendor's data security.(Source: FOPeer)
- Great question. We would love to also know anyone's best practices on this matter.
- We have an IT vendor that is doing the FO, third-party vendor reviews as part of a broader oversight mandate of our office’s IT MSP.
- We alternate between Drawbridge and Security Risk Advisors for all third-party and manager cyber due diligence reviews. Both are great.
Member Referrals Requested:
This section includes service providers that members have recommended and/or are looking to hear about other members’ experiences.
Austin, TX CPA
We are looking for CPA recommendations from Austin, TX. (Source: ADVPeer)
- Any specific areas of expertise that you can share? Also, personal or business operating?
- $30M net worth and is not a business owner. Looking for someone with wealth transfer experience but otherwise focus on personal.
- We have a great CPA (Jonathon March) who is located in our Dallas office but travels to Austin monthly and is a wealth transfer expert. Let me know if you would like an introduction. Click here to see Jonathon March's page
- Regarding your initial request, BPM LLP offers tax and advisory services in all 50 states, with a local office in Austin, Texas. Please let us know how we might be able to assist you further.
Healthcare Consultants
We would like to find a healthcare consultant that we can recommend to our clients. We find our clients need assistance with sourcing private health plans, especially when they relocate to new states. They also need assistance with Medicare options. Any recommendations you can provide would be greatly appreciated. (Source: ADVPeer/FOPeer)
- Our clients have had positive experiences with PinnacleCare. Happy to make an intro to our partners there to explore more connections for you.
- We have been very satisfied with Maura Carley's firm, Healthcare Navigation, LLC in Connecticut, healthcarenavigation.com.
- Our Lifestyle team at Trove are experts in insurance analysis and administration. Please let me know if you'd like an introduction. Lifestyle Management - Trove
Interim CFO/CPA for Project-Based Assignment
Looking for an interim CFO/CPA in the Missoula, MT/Spokane, Washington area but would consider someone that is a temp CFO from any market that could do a project-based assignment. (Source: ADVPeer)
- We (Armanino) have several CFO resources in that area of the country and would be happy to support. Please reach out for more.
John Stewart
Partner, Consulting
Family Office Industry Leader john.stewart@armaninoLLP.com
- BDO has a division for this exact type of need. Let me know if you'd like me to get you connected with them to identify the right person.
- Thank you for the follow up! Where is BDO's closest office or location to the Missoula, MT/Spokane, Washington area?
- BDO has an office in Spokane. I can't guarantee that the right/best person for your need is based in that office, but I'd be happy to discuss this with you and get you connected to the office managing partner there if so.
- RSM has capabilities to support this request and/or help you find other options, as well. Email me or reach out via LinkedIn if I can help.
- BPM's CFO Services team partners with founders, CEOs, boards, and investors to guide emerging-growth and mid-sized companies through growth and transitions. Please see the contact information below, and we're happy to make any introductions if that's helpful!
- BerryDunn's Outsourced Accounting Group provides CFO services and project work. I am happy to chat and brainstorm various options.
Offshore Alts Tax Professionals
We would like to have a few references of tax professionals well versed in alts accounting/tax advice, in particular offshore alts. We had some issues with one of our large non-profits where they were somewhat blindsided to the complicated tax reporting that can happen with offshore alts tax issues/reporting. Texas primarily. (Source: ADVPeer)
- Alexandra Mitchell, a Principal at RSM’s Washington National Tax practice focusing on exempt organization issues has a wealth of experience in this area and can be helpful. She can be reached at 202.370.8182 or alexandra.mitchell@rsmus.com.
- PKF O'Connor Davies has significant expertise with accounting and tax advice for non-profits that invest in offshore alternative investments. Steve Prostano, who is copied, can connect you to the right partner in PKFOD based on your fact pattern.
Third-Party IT Partner
Looking for a third-party consultant/firm to come in and do a current-state IT assessment and develop a multi-year strategy and roadmap. Experience in building roadmaps to stand up an independent IT function (vs. being embedded in the core business) is important. Thank you in advance. (Source: TODS)
- Good luck. We have a hard time finding a firm that puts security first – they all have to turn a profit, and that is their first concern.
- We do this work several hundred times a year for our family office clients and have extensive experience designing and implementing family office technology stacks. We have a nationwide presence and are experts in this space and would be happy to speak further. Feel free to reach out directly. My contact information is below.
John Stewart
Partner, Consulting
Family Office Industry Leader
john.stewart@armaninoLLP.com
- Our office has used Synapse Consulting for 10 or so years and are very happy with their thoroughness and ability to adapt to changing landscapes. They managed technology across our office and several home offices for years with servers and physical security before helping us transition to a completely cloud-based business. Additionally, they have strong attention to security details and the constantly changing environment and helped us as we did a very thorough cybersecurity testing exercise last year with CyberMaxx who was also excellent in testing our networks and security protocols, along with penetration testing. I couldn't recommend both companies enough for their hands-on approach.
- We use a company that focuses on family offices called Advanced Business Resources (ABR). Feel free to reach out to me for more information.
- Advanced Business Resources is also a Risk Management Partner here at FOX. We are happy to connect you if you like.
- We used RSM for two different IT assessments over the last several years, an assessment of our IT landscape focusing on Azure and M365 security configurations as well as an Internal IT Controls review. While the security assessment didn't produce an IT roadmap, they provided a list of recommendations with a risk rating and order to complete. The IT Controls Review did provide a multiyear roadmap for developing our internal IT controls, policies, and procedures. RSM has enterprise clients as well as family offices, so I feel like their knowledge base has a good balance between strict enterprise level security requirements as well as the complexities of the family office.
- Kristine Marciniak kristine@synapse.tech
- Greg DeMars gdemars@cybermaxx.com
Additional Topics of Interest Seeking Peer Recommendations, Feedback, or Insights
(Your comments can be submitted as a reply to the message on FOXChat or emailed to networks@familyoffice.com for FOX to post and share anonymously on your behalf.)
California Property Manager
We are looking for a Property Manager in Truckee, CA or thereabouts to manage a vacation property that is also occasionally rented out. Any recommendations would be appreciated. (Source: FOPeer)
Connecticut Accounting Position
A client of ours is looking for an accountant to work in their family business office, based in Connecticut. The position is more of a business accountant and requires many of the typical general ledger accounting skills. It is unique in terms of its work/life balance. The position is four days a week and the income tax preparation work is outsourced, so one does not have to endure the pressures of tax season. Also, the position just serves the principal and not numerous beneficiaries. I posted the actual job in the Talent Bank but wanted to communicate it to the larger FOX audience who may not frequently look through the Talent Bank postings. Let me know if you have any ideas. (Source: ADVPeer)
Montana Real Estate Attorney
Request a recommendation for an attorney in Whitefish, Flathead County, Montana, to represent a client in a real estate dispute. The client sold a residence in 2021. The buyer has filed a suit against her real estate agent and his agency, the client's real estate agent and his agency, my clients, and other individuals and corporations to be named later related to alleged mold contamination in the residence. (Source: FOPeer)
Personal Assistant
We are in the process of retaining a search firm to help find a personal assistant for one of the older family members. The personal assistant would be required to travel with the individual and be responsible for daily caretaking needs. Curious as to the salary we should provide to the recruiter? We would offer full benefits and living arrangements for the personal assistant. (Source: FOPeer)
Transportation
Has anyone ever worked with J. Rotbart & Co.? Considering them for transportation from Singapore to the states. (Source: ADVPeer/FOPeer)
Travel Policy for Family Office Staff
I am reaching out on behalf of a family office client who is looking for guidance on or, ideally, a sample travel policy for the family office staff (e.g., when traveling use Uber Black vs. X, insurance, etc.). Does anyone have any advice or a sample policy to pass along? (Source: FOPeer/HCAP)
Tucson, Arizona Estate Planning Attorney
We are seeking a recommendation for an estate planning attorney in the Tucson area that works well with family offices. Most of the assets are in trust, but the clients would like some reassurances on allowing the surviving spouse to continue to use the real estate and any other state-specific nuances. (Source: FOPeer)
Visa
One of my kids is supposed to be going to Rome to study for the fall semester from college and is having problems getting his student visa. Because he's in school in California and we live in Utah, my understanding is only the Italian consulates in those two states can help him. I am looking for any resources who might be able to help us accelerate this process since he is less than a month away from leaving for Rome! (Source: FOPeer)
Software Reviews/Experiences
This section contains software platforms that members have recommended and/or are looking to hear about other members’ experiences.
Charitable Trust Accounting Software
We are looking for recommendations for reasonably priced charitable remainder trust administration accounting software. We need the software to be easy to implement, including direct connection to Fidelity to make reporting much more time efficient, providing four-tier accounting and having templates for the annual reporting.
This will be our first time providing trust administration assistance to the named trustees and want to provide (like everyone would) better and more timely reporting and services than the previous providers. We are only starting with 3 CRUTs that expect no additional contributions.
We are considering: GEMAcct; Trust Accountant Cloud; TrustBooks; TNET Lite BackOffice. Any to stay away from? Thank you in advance for your guidance. (Source: FOPeer/TODS)
CSC Entity Management
I would be interested to hear from SFOs that are using CSC Global's Entity Management component. We are a fairly new office, and it seems like an uncomplicated tool to manage entity governance information, documents, and compliance. What functionality do you love and what do you think is missing, or could do better? Or if you have moved from CSC to another tool, would appreciate comparisons. (Source: TODS)
Ledgex
We are currently evaluating our software needs and I was wondering if anyone has converted to Ledgex. Any comments appreciated. (Source: FOPeer)
Key to Network Acronyms
- ADVPeer: Advisor Peer Community
- FOPeer: Family Office Peer Community
- DIN: Direct Investing Network
- FLN: Family Learning Network
- HCAP: Human Capital Network
- LCN: Legal Counsel Network
- PTC: Private Trust Company Network
- RGN: Rising Gen Network
- TODS: Technology Operations & Data Security Network