The monthly close in a family office
Built on Chapter 3 of The Single Family Office by Richard C. Wilson. Full chapter text: FamilyOffices.com.
Companies close their books every month. Many family offices do not, and they pay for it later in messy tax seasons, surprise cash shortfalls and reports no one trusts. A simple monthly close is one of the habits that separates a well-run family office from a stressed one.
What the monthly close is
The monthly close is a set of steps the office completes after each month ends. It makes sure every transaction is recorded, every account matches its statement, and the family's financial picture is current. It turns a pile of statements into numbers the family can rely on.
The core steps
Collect statements. Gather every bank and custodian statement for each entity.
Record transactions. Enter all income and payments, including transfers between entities.
Reconcile accounts. Match each account balance to its statement and investigate any difference.
Review payables. Confirm that every bill paid was approved, and list bills still due.
Update investments. Record values for liquid holdings. Note any new private investment statements or capital calls.
Check intercompany balances. Make sure loans and transfers between family entities net out properly.
Compare to budget. Flag spending that is running over or under plan.
Report. Send a short summary to the lead executive and, where agreed, the family.
Timing
A common target is to finish the close within two to three weeks after month end. Private investment statements often arrive later, so many offices update those values quarterly while still closing liquid accounts monthly.
Who does what
In a lean office, an outside accountant may do most of the work, with the lead executive reviewing and approving. In larger offices, a controller owns the close. Either way, the person who reconciles should not be the person who approves payments.
Why it pays off
Faster tax season. Clean monthly books mean year-end tax work goes quickly and costs less.
Fraud detection. Monthly reconciliation catches unauthorized payments while there is still time to act.
Better decisions. Current numbers let the family see liquidity and plan for capital calls.
Trust in reporting. When the books are closed regularly, the family believes the reports.
A simple checklist
- All statements collected for every entity.
- Every account reconciled with differences explained.
- Payables reviewed and approved.
- Intercompany balances checked.
- Budget variances noted.
- Summary sent and filed in the family vault.
Starting from a backlog
Many new offices inherit months or years of unreconciled records. Do not try to fix everything at once. Pick a clean starting date, such as the start of the current year, and close every month forward from there. Then work backward on the older records in priority order, starting with the entities that matter most for taxes. An outside accountant can often clear a backlog faster than an internal team that is also running the day to day.
Common problems
Missing statements from small accounts that no one remembers. Transfers between entities recorded on one side only. Personal spending coded to the wrong entity. Closes that slip from monthly to quarterly to yearly, until the backlog becomes a project of its own.
The fix is to treat the close as a fixed calendar event, with clear owners and a short checklist. Small, regular work prevents big, painful catch-ups.
What to take from this
- Close the books every month for every entity.
- Reconcile every account and explain differences.
- Keep the reconciler separate from the payment approver.
- Use a short checklist and a fixed calendar date.
This page is general information, not accounting or tax advice. Speak with a qualified accountant about the right close process for your family office.
Questions and answers
What is a monthly close? A routine of recording and reconciling every account after each month ends.
How long should it take? Many offices aim to finish within a few weeks of month end.
Who should do it? An outside accountant or in-house controller, reviewed by the lead executive.
Why bother? It speeds tax season, catches fraud, and keeps reports trustworthy.