Though, as a child, scavenger hunts are fun-filled affairs, they make for a nightmarish scenario in the world of entity management, pulling everyone into action when a piece of key entity data goes missing in action.
Typically, these “scavenger hunts” ensue during due diligence processes, know-your-customer (KYC) inquiries, and merger and acquisition (M&A) transactions, but if you are using decentralized entity management software or relying on manual processes, documents can go missing anytime you conduct an audit or attempt to generate a report.
Thankfully, you can break the hide-and-seek cycle and achieve exceptional entity visibility by using a few proven strategies and investing in some new technologies.
What Causes These Dreadful Scavenger Hunts?
Before you can put the concept of entity management scavenger hunts behind you for good, it is vital that you identify what could be causing your data to go missing in the first place. Typically, entity management headaches can be attributed to one of the following three main causes, all of which are interconnected:
Manual Processes
In a perfect world, your staff members could conduct flawless data entry, but even then, manually inputting entity information is an ultimately inefficient, tedious, and time-consuming task, and it leaves your team unable to focus their talents toward the completion of more dynamic tasks.
Of course, in reality, manual data entry creates a significant risk of errors, and even the smallest, occasional mistake can compromise the integrity of your entity data, making it difficult to find important documents and causing discrepancies when you run reports. Additionally, manual processes leave the door open for other types of mishaps as well, such as accidental deletions or saving documents in the wrong folder.
The first step toward putting a stop to wasting countless hours scouring your database for key documents is to invest in entity management software with automation tools. The automation of redundant processes saves time and money, frees up resources, and provides near-flawless accuracy.
Antiquated Software
Legacy technologies are severely lacking when it comes to process automation, meaning they hamper the productivity and efficiency of your team, but that is not the only way in which they fall short.
Old-school software is costly to maintain, for one thing, and many older entity management solutions only address a few core functions as well. As such, you will likely find yourself leveraging a cobbled-together network of outdated applications. Not only will all those licensing fees add up, but constantly switching between platforms can easily become tedious and inefficient.
The absolutely worst trait of antiquated software, though, is that it often doesn’t integrate or communicate with your other, newer applications. In other words, data inconsistencies can pop up across your network of software, and even worse, data silos may form as well.
Data Silos
Manual processes, disparate software, and disjointed teams create the perfect storm for the worst aspect of entity management scavenger hunts: data silos.
These form when information is only accessible to one department or via one application and otherwise isolated from other teams and systems within the organization. For instance, if your accounting and legal teams use disparate software that does not communicate, each group is working in its own data silo.
When data silos take hold, your departments work with inconsistent or incomplete data, potentially (and very likely) making it extremely difficult for a team or department to locate the information they need as the need arises.
Data silos also hinder interdepartmental collaboration, meaning it becomes much harder for your finance, legal, and tax teams to work together during entity management processes, such as due diligence or KYC verification.
How to Make Lost Entity Management Data a Distant Memory
Much like the three factors that lead to entity management scavenger hunts are intertwined, the strategies for improving data visibility and accessibility are also similarly connected.
With that being said, to simplify your entity management processes and ensure your team can access the data they need, you should do the following:
Reevaluate Your Processes
Consider whether you have ever taken a moment to determine just how many manual processes you rely on. If you haven’t, make a list of each department or team that manually inputs data, manages entities, and prepares documents.
From there, determine how you can eliminate each of those manual processes from your workflows. What you will likely find is that you need a combination of revamped processes, new technologies, and a restructured workflow.
Tear Down Data Silos
After identifying where process changes are needed, it is time to rid your organization of all of the various data silos that are preventing your team from collaborating.
You have a few options when it comes to eliminating data silos. The first involves integrating your existing technology stack, though that can prove difficult and costly, especially if you are currently using several disparate applications.
The more practical approach involves implementing entirely new software. Specifically, you should consider upgrading to a scalable, cloud-based entity management software solution.
Upgrade Your Entity Management Software
Modern entity management software can be a genuine game-changer for your organization. To relate it back to our scavenger hunt analogy, think of entity management software as though it is a map: You will know the precise locations of each piece of your data and your documents, which means you’ll no longer waste time searching for a specific file.
With entity management software in place, everything will be in a single, centralized, and secure location, and within seconds, you and your team can begin gathering data for KYC verifications, preparing reports for audits, and compiling information for due diligence. Leading platforms also feature powerful automation capabilities, which can lead to cost savings and significant efficiency improvements.
Achieve Exceptional Visibility with Athennian Entity Management Software
Make sure you never participate in an entity management scavenger hunt again by replacing your legacy solutions with Athennian’s entity management software. Our solution tears down data silos, consolidates your data, and provides a single source of truth for all entity management activities.
Whether you are performing due diligence for transactions, conducting a KYC verification, or simply preparing for an audit, Athennian will streamline the process. To learn more about our entity management software, schedule a demo with our team today.
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