Outsourcing FO & Private Investment Partnership Administration

In recent years, family offices, private investment partnerships, private equity (“PE”) firms, and high net-worth families alike have found that outsourcing administration, accounting and tax services to a professional firm, like Brixey & Meyer, can really simplify their lives. Outsourcing has many potential benefits including;

• improving operational efficiency within your back office
• enhancing your relationships with investor
• adding experienced talent with valuable skill sets
• boosting the overall credibility of your organization

When deciding what is right for your organization, there is no one right answer - individuals, firms and partnerships all have different needs and different capabilities. This is where Brixey & Meyer professionals can really make a difference – we can tailor an accounting and/or administration package that works for your unique situation. Often splitting our services or co-sourcing with other third parties.

Understanding the Difference Between Accounting and Administration

When it comes to family office and PE partnerships, the line between accounting and administration services is not always clear. While the two may often overlap, they are not necessarily the same.

• Accounting: Accounting services include preparing financial statements, calculating taxes, preparing tax returns and/or performing independent audits. They ensure that investment reporting meets applicable standards and compliance with tax regulations.
• Administration: Administration providers handle the back-office responsibilities on behalf of the general partners, limited partners, or the family office. They maintain the books and records of the investment activities (including capital call and distribution correspondence) and they ensure that everyone involved receives the necessary reports to do their jobs.

Given the increasing complexity of investment structures and investor pressure for independence and transparency, choosing an experienced service provider that you can trust to be reliable is more important than ever. Partnerships and funds are experiencing more sophisticated and exotic profit interest calculations and waterfall distributions requiring the careful oversight of cash movement by both accounting and tax professionals.

Whatever your needs may be, it is hard to overlook the numerous benefits financial outsourcing brings. When a company outsources accounting and administration, it allows them to focus on driving investment performance.

Using a third party like Brixey & Meyer provides independence provides investors and entrepreneurs additional peace of mind.