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Bailey McCann, Opalesque New York:

Family offices can face a number of operational challenges. Family offices that were originally created in a more free form or ad hoc way may face difficulty when trying to professionalize, for example. Families that go through changes either in their operating companies or internally, may find that they need to update processes and procedures. A new report from RSM highlights how family offices are navigating complex environments and improving operationally.

The top concern cited by the report is operating expenses. On average, single family office respondents said that approximately 65% of their operating expenses for 2022 were incurred in-house. The biggest portion of that - 21% - goes to accounting fees and billing. Other significant costs include fees related to investing, administration and tax planning.

Many family offices are turning to outsourcing as a way of improving operations, the report shows. Regardless of size, about 60% of budgets are allocated toward in-house expenditures, on average, while roughly 40% is allocated toward outsourcing.

Survey results showed the smaller the family office, the more likely it is to rely on outsourcing. Nearly 58% of respondents from small family offices view outsourcing as a method of focusing on delivering value, compared to 43% of respondents from midsize family offices and 28% of respondents from large family offices. Respondents said that outsourcing is also important to miti......................

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