United States

Extensive RSM services help clients reach individual financial goals

CASE STUDY  | 

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Background

Our client is a leading hedge fund located in the northeastern United States. The organization recognized a growing need to help better manage the everyday life activities of a large number of partners, directors and analysts, including several high net worth individuals. These activities included income tax planning and compliance, as well as paying bills and managing finances for trusts, charitable contributions and family businesses.  

Project

Following a competitive bid process, RSM US LLP’s private client services (PCS) group was chosen to provide income tax planning and compliance for fund employees, based on the firm’s comprehensive scope of services and potential to provide further advice to help manage several important areas of employees’ lives.

Soon after beginning income tax work with fund employees, it quickly became apparent that many needed assistance with their complex financial needs. The RSM team understood their challenges, and presented a finance and accounting outsourcing (FAO) solution to help these employees better manage their everyday activities and family offices.    

An expanding relationship

The hedge fund agreed with RSM’s vision, and the relationship expanded to include a complete spectrum of FAO services, including bill payment, ledgers and trial balances, profit and loss statements, and balance sheets for trusts. The RSM team now tracks charitable contributions and manages financials for private foundations, creating necessary documentation to support the charitable donations for IRS purposes. Employees also receive help with managing the financial demands of their specific family businesses, as well as second home properties.

Case 1: Managing complex business interests 

One example of a private business is an individual with several commercial real estate properties. The RSM FAO team manages the complex rental business after implementing an accounting system to process transactions throughout the month, perform a formal close process and reconcile accounts to make sure numbers are accurate. Rental revenue is tracked, and information is provided to the RSM PCS group to help ensure proper tax filings.

Addressing challenges, increasing peace of mind

The main goal for RSM’s FAO services is to eliminate headaches related to financial accounting, while providing necessary functions such as accounting reports for trusts fiduciaries.

RSM’s solutions have added significant value because these individuals want to maintain a separation between their business and professional lives. More importantly, RSM also provides confidence for the client’s finances and operations.

In addition, the RSM FAO team supports the necessary technology that provides the day-to-day transaction processing and month-end close reports and accounting. Individuals’ lives are simplified because they no longer need to maintain technology, or in some cases, even maintain a physical office. RSM’s technical experience and vendor relationships scale to individual client needs, keeping their information secure and organized without the need to work with technology vendors or maintain servers.

Case 2: Implementing secure bill payment solutions

An individual had concerns about fraud potentially occurring with large bill payments. RSM implemented state-of-the-art technology with extensive security around the bill payment process to discourage fraud. There is now an additional level of comfort due to RSM’s relationships with vendors that are constantly being vetted.

The value of integrated teams

Integration between RSM’s PCS and FAO teams enabled greater efficiency for hedge fund employees, and reduced the complexity in individuals’ lives.

The integration also leads to fewer disruptions for hedge fund employees, because they have to manage fewer relationships, sharing information with only one organization. For example, the RSM FAO group provides the PCS team with key information for tax planning at the end of the year, seamlessly beginning the process of determining methods to depreciate assets. All of that information is shared internally under the RSM umbrella, and it is less disruptive for the family while their needs are still effectively met.

Case 3: Integrated services increases effectiveness

The RSM PCS team worked with an individual and the individual’s estate attorney and insurance provider on estate planning, helping to ensure the right insurance was in place and making suggested changes to the estate plan that resulted in revisions to the individual’s will in order to best align with family and charitable intentions.

In conjunction, the FAO group provided necessary information to quickly understand the individual’s cash flow and net worth. Working with one firm that provides multiple key services drives additional value to the client with more effective service and planning capabilities.

Otcomes

RSM’s depth of services and collaboration between teams provides firm employees with a comprehensive solution for their personal financial, accounting and family office needs. Through RSM’s PCS and FAO solutions, individuals can receive tax planning and compliance assistance, as well as more extensive capabilities for high net worth employees that eliminate challenges related to everyday financial management. Clients can maintain a separation between their professional and business lives, and have more peace of mind that their finances are more streamlined and secure.

Other benefits of RSM’s service to firm employees include:

  • Day-to-day transaction processing and monthly accounting and reporting
  • Financial management for charitable contributions and foundations, property and family businesses
  • Enhanced technology and security capabilities with RSM’s relationships with regularly vetted technology providers
  • Simplifying the lives of high net worth individuals by reducing the amount of information that needs to be shared and implementing more efficient financial processes

 


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