The main difference between single-family and multi-family office accounting lies in the service model, cost structure, level of customization, and how resources are shared. Both provide specialized financial management for high-net-worth families, but each serves a different type of client and operational need.
Single-Family Office Accounting
A single-family office (SFO) serves one ultra-high-net-worth family exclusively. Accounting is fully customized and deeply integrated with that family’s financial life. Key characteristics include:
- Dedicated staff and systems: CPAs, controllers, analysts, and bill-pay teams working solely for one family.
- Highly tailored reporting: Customized investment dashboards, detailed entity-level reporting, and specialized consolidation.
- More complex multi-entity management: Trusts, partnerships, holding companies, foundations, and operating businesses.
- Higher cost: SFOs typically require significant overhead and technology investments.
- Greater privacy and control: All data, systems, and decision-making remain internal to the family.
SFO accounting is ideal for families with $250M+ in assets or very complex multi-entity structures.
Multi-Family Office Accounting
A multi-family office (MFO) supports multiple families using shared systems, staff, and technology. Accounting services are still specialized but delivered through a more efficient, standardized model. Key characteristics include:
- Shared resources: One accounting team serves many families, reducing overhead costs.
- Standardized processes: Consolidation, investment reporting, and tax coordination follow uniform best practices.
- Cost-effective structure: Lower operational costs compared to running a full SFO.
- Scalable services: Flexible accounting support for families with $20M–$150M in assets.
- Broad expertise: Access to specialists in tax, investment reporting, estate planning, and advisory.
MFOs balance high-touch support with affordability, making them suitable for families that need professional oversight without hiring a full internal staff.
Key Differences at a Glance
- Customization: SFO = fully tailored | MFO = semi-standardized
- Cost: SFO = high | MFO = moderate
- Staffing: SFO = internal team | MFO = shared outsourced team
- Use case: SFO for ultra-high-net-worth families | MFO for high-net-worth families needing flexibility
If you’re deciding between a single-family — or multi-family office structure — Watter CPA can evaluate your family’s assets, goals and complexity — and deliver an accounting solution custom-tailored to the level of control &customization and cost you need. Reach out to us today for decades of expertise.
