Daily money manager

From CEOpedia | Management online
Daily money manager
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Daily money manager – individual, organization or computer program, which acts as a personal financial assistant.

In general DMM take charge and maintain financial operation of the customer. It is hard to define one segment of the customer on the market who prefers to use financial services provided by daily money manager. It might be elderly people, young inexperienced in investing people, freelancers, start uppers or just people with active type of lifestyle who have other fish to fry besides planning and controlling their financial operation (L. P. Weston 2012, s. 176).

Functions of daily money manager

The main tasks of the daily money manager are(S. Hoffman 2015, s.31):

  • paying monthly bills
  • preparing a budget
  • organizing financial records
  • accumulating and setting right mail
  • keeping all the necessary documentation
  • getting done records for income tax preparation
  • helping with tax records
  • planning checkbooks
  • interpreting medical bills
  • negotiation with creditors
  • negotiating with service provider about bills and bill payment
  • notarizing documents
  • management of payroll payments
  • assistance in health care

It might also be another task which needs fiduciary capacity. Important thing to remember is that daily money manager is not only the person who is helping with financial operation, but it also might be an organization, which workers have the legal right to represent their clients in various financial institutions.

For example, some organizations of this type are:

  • The American Association of Daily Money Managers
  • Eldercare Locator
  • The American Association of Retired Persons
  • Khan Academy
  • National Center on Elder Abuse
  • United Kingdom Center for Policy on Ageing
  • Personal Finance Education Center

Key features of a daily money manager

The main skills required for this position are (Management accountant: job description , 2019):

  • good oral and written communication skills
  • excellent analytical abilities
  • superior numerical abilities
  • competence in working as a team player
  • advanced level of business knowledge
  • valuable efficiency and paying attention to details

Choosing the right one daily money manager

One of the essential admonition is that daily money manager is one of the newest careers on the market. Due to this fact, their work is not regulated by federal agencies yet. Some of the organization has their own code on ethics, but still not all of them because it is not required by law. The role of the daily money manager is quite similar to the role of financial lawyer, banker or accountant. On the other hand, it is not the same role, and it is one of the main conditions the customer should remember about (S. Hoffman 2015, s.33).

As a result of it, here are some questions, you should ask specialist before hiring her or him as your daily money manager:

  1. Do you know your fiduciary responsibility?
  2. Do you have regulation to be sign by customer which includes what happens if bills are not paid on time?
  3. Do you have security measures to protect customer's personal data, such as bank account numbers, and others?
  4. Do you communicate with customer to let them know about all of the documents which are required to get the job done without wasting extra time?
  5. Do you have free of pay consultation?
  6. Do you have overall fee structure?
  7. Do you have any professional certifications?
  8. Do you share any contact information of your previous customers?
  9. Do you have a plan how usually communication with customer will be?
  10. Do you have a plan how will communication with customer look like?
  11. Do you have hourly rate?

Who needs daily money manager?

There is no prohibition of who can use services offered by daily money manager, but still there are some segments of the costumers on the market, who are more likely to use such a favor.

Elderly people are the bigest group of dmm clients. Entirely of specialist working with seniors confirmed that it is common for people this age category to lose cash or check as well as to forget to pay bills or taxes on time.

The mentally or physically disabled person are often using daily money manager services. One of the essential reasons is that not all guardians have time and knowledge required to run financial affairs of the patient.

Young inexperienced in investing people are applying for dmm services also because they not always can afford lawyer services or accountant services at the same time.

Computer and mobile applications

Nowadays thanks to development of information technology there are a lot of computer programs and mobile applications. In addition to that personal finance was always interesting topic for all age category of customer. These types of programs make it more easy to use daily money manager function. First of all client does not need to leave his or her own house. Secondly you do not need to have face to face or even any contact with other people – often it might be stopping factor for some individuals. Thirdly the biggest parts of applications like those are customer focused, which makes their interface easy to understand.

The most popular programs for Android are:

  • Money Manager Expends and Budget
  • Monefy
  • 1Money
  • ClevMoney
  • QuickBooks Accounting + Invoices


Author: Olha Slyuzar