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Families have multiple financial obligations. If you are not careful, managing your personal, family, and business finances can be tricky when you have a family. The professionals at Cavanaugh & Co handle your family’s financial considerations with respect due to years of experience providing custom CFO, accounting, and consulting services.
These services are for family estates as well as individual and foreign owners of U.S. real estate. Also, financial responsibilities can add stress to your day-to-day life. That is why Cavanaugh & Co services include cash management, bill payments, ledgers, reconciliations, investment relations, and bank deposits.
These offerings are highly confidential, and financial experts oversee all of them, which ultimately gives you peace of mind. Additionally, balancing both family responsibilities and finances can be challenging. It even gets worse when you have to discuss money matters and estate management issues with your family. Therefore, putting your family’s finances in order from the onset is critical if you want to avoid such problems. Here are some tips for organizing your family’s resources.
1. Open A New Account
The first step towards organizing your family’s finances if you own an estate is separating your funds from the income that your investment generates. Putting your money in the same account with proceeds from your estate is part of the causes of mismanagement of such funds. In that case, you should consider opening a new account and dedicate it to estate income only.
That way, you will not spend money you intend to use on improving your estate on personal needs and vice versa. In turn, you will have better control over both personal finances and what you receive from your estate.
2. Consider Implementing Autopay
When you have money in your pocket, there is always something appealing out there that causes you to fall into the trap of impromptu spending. The secret here is carrying just enough money for the day before leaving the house. But what happens when your family owns an estate, and you receive your rental income in cash?
Taming excessive spending in such a situation will prove a challenge. So, you need to consider adopting autopay for your tenants to pay through the bank rather than channeling the money through you in the form of cash. That way, you will have no idle funds at home or in your pockets, which can help you avoid impromptu expenditure.
Also, some tenants may delay beyond the deadline for paying rent for various reasons and especially when you decide to receive such funds in cash. Autopay can address this problem because it sends your tenants’ alerts/reminders before the due date so they can pay on time. Monitoring the holding account for your family’s estate is also possible when you implement autopay.
3. Set Up Automatic Alerts
Most probably, you have a lot to handle in your hands, yet you want to keep tabs with what is happening with your family’s estate account. Since you may not have the time to go to the bank to make a follow-up every other time, you should consider leveraging technology. Right from emails to messages on your phone, setting up automatic alerts will help you monitor your family’s real estate account from wherever you are at any one time.
As a result, you will never miss out on any transaction, whether it is a deposit or withdrawal, and identifying the issues you need to address immediately will also be possible.
Family finances are a cause of most legal disputes, especially where they involve real estate. The pressure and cost implication of a case dragging in a court of law regarding your family’s finances will be avoidable if you take steps to organize such funds. If you need more information on organizing your family’s finances, contact us today!