There's Nothing Like Family
Family Day, a day whose purpose is to remind us of the importance of love, support and our family ties. This year, Family Day will be celebrated on Friday, a day that the majority of Israeli society dedicates to quality family time together. And as with most shared Friday meals, despite all the love and reciprocity, arguments and disagreements often arise between family members. And what is true in life, is of course also true in the business world and even more so.
The success of family businesses is often based on the strong solidarity between the family members and the shared motivation to succeed, but what happens when cracks start to appear and it is already difficult to reach agreements together? We must sort out the issues where a lack of agreement could turn into a family rift. This may lead to heartache and sometimes also to the deterioration of the business.
As accountants, we accompany many families in their joint business journey. and succeed in helping them with the challenges they face from outside and inside. Businesses that succeed and develop, are those businesses that know how to integrate ongoing proper management into their operations. Such as:
· Ensuring the division of roles and defined powers - each family member has a specific role and is not permitted to interfere in the work of other family members.
· Making joint and equal decisions based on broad consensus and clear rules.
· Determining the authority of an arbitrator agreed upon by all parties in case of a small or large business dispute.
· Ordered intergenerational transfer - the transfer of responsibility from the generation of the founders of the company, while they are still alive, to the next generation.
The professional team of the audit department in our office put into practice these rules for operational accounting decisions that helped our clients, not only to maintain their family and business stability, but also to avoid tax accidents when it comes to decisions related to situations of liquidation of assets, splitting different types of shares between companies, and situations of separation various business activities .
If you have a family business or you intend to start a new family business,
we strongly recommend that you consult with an expert in the field!
We will be happy to assist you with any questions.