Entity Management Software

Definitions & Best Practices

Entity Management is a powerful tool to keep your firm on track as it grows and to scale processes across both small and large organizations. The right solution can eliminate error-prone, time-consuming manual tasks that may prevent teams from focusing on valuable, revenue-generating work.

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What Is Entity Management Software?

Entity management software helps firms manage entities, build and maintain complex org charts, and track deadlines in a single location. Without an entity management solution, firms are exposed to unnecessary errors and risks caused by outdated and manual processes. Ultimately, entity management exists to help businesses gain control over their entities and manage the ensuing responsibilities.

The Problem with Spreadsheets for Legal Entity Management

Organizational compliance can be more difficult to accomplish when legal entity documents and data are updated, managed, and stored in spreadsheets. Spreadsheets create opportunities for manual errors, data silos, and security breaches to occur. Typos, data security issues, and lack of visibility across the organization can cause missed filing deadlines and payments, increasing noncompliance risks.

The Benefits of Entity Management

Some organizations manage multiple entities across varying states, entity types, and industries. The more entities a firm has, the more complicated it becomes to juggle important information, data, and filing deadlines. Entity management simplifies the legal entity management process, saving both time and money. Best-in-class entity management software helps teams:

CENTRALIZE AND SECURE ENTITY DOCUMENTS AND DATA

A centralized database is important for storing and securely sharing data and other sensitive information. A single source of truth prevents data and documents from being shared across multiple unprotected sources. Centralized data also creates opportunities for teams to collaborate more efficiently and effectively.

BUILD AND UPDATE ORGANIZATIONAL CHARTS WITH EASE

Every organization needs a formally documented organizational structure. The org structure should clearly represent your investors, shareholders, stock classes, and more. Entity management software simplifies building and updating org charts, enabling your team to focus on other value-add activities for the business.

REDUCE REPORTING AND DATA ERRORS

Historically, many industries have relied on Excel for reporting. The problem is that manually-input data often contains multiple errors buried throughout the spreadsheet. Entity management software reduces human error and prevents misplaced and inaccurate data caused by disparate systems.

MANAGE ANNUAL COMPLIANCE AND FILING DEADLINES

The pressure is high when managing multiple compliance and filing deadlines for multiple entities. Missed reporting deadlines can result in avoidable fees that impact your bottom line and hinder organizational growth. Entity management software gives you the tools to monitor and track important deadlines so that you never miss a due date.

ELIMINATE MANUAL PROCESSES

According to Ernst and Young, 89% of companies face challenges managing their legal entities. On average, organizations spend 18 hours every month modifying, consolidating, correcting, and updating spreadsheets. Additionally, the average employee spends 40% of their time on manual tasks that could be automated. In simple terms, manual processes can take a lot of time out of your team’s day – time that could be focused on more value-add activities for the company. Entity management software automates the manual processes that slow your firm down, improving and building confidence in the firm’s operations.

How to Choose the Best Entity Management Software

The best entity management software for your firm depends on your company’s entity management needs, challenges, and pain points. At minimum, a best-in-class entity management platform should enable your firm to:

When choosing the best entity management software provider for your firm consider whether:

As you assess entity management software and providers, you’ll be able to determine the best legal entity management tool for your firm. Use this checklist for a list of questions to ask as you evaluate and select an entity management software vendor.

Ready to Get Started?

EntityKeeper reduces manual errors and increases security when it comes to your corporate data. Ready to learn more about how EntityKeeper can address your entity management challenges and more?

Get started with EntityKeeper today or request a demo to see the solution in action.

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EntityKeeper is a critically important component in tracking and managing our clients corporate information and compliance deadlines. Our clients group structures range from 20 entities up to 2,500! We rely on the system to ensure our clients' information and documents stay accurate and up to date.