It is very common for corporations to have multi-layers and multiple subsidiaries that are working under one corporate umbrella. Depending on the number of entities and subsidiaries your organization has, making sure that you have an organized record-keeping process is important so that you can keep track of all entities at any given time.
Due to the rapid rise of technology, there are numerous tools that you can use in terms of expanding globally and implementing an effective corporate subsidiary management process. Subsidiaries are created through mergers and acquisitions – one of the most common reasons for this is a global corporation looking to expand through different countries by establishing domestic subsidiaries.
With the globalization that your corporation is undergoing, it will be more complex to manage different subsidiaries. An entity management software can help you with corporate subsidiary management which is beneficial to make sure that you are in compliance and can adhere to corporate governance.
What are the Top 3 Signs That Your Entity Management Structure Needs Organizing?
Corporate paralegals and law firms are handling more data than ever before and they are expected to handle clients’ information with ultimate privacy and confidentiality. This translates to having a record-keeping and data storage process to make sure that the information is properly secured.
Because of these client expectations, law firms are expected to have entity management software to help them with keeping data safe and secure. This type of software will also help with corporate subsidiary management.
As a legal professional, here are the top 3 signs that your entity management structure needs control:
The practice of law has been around for a long time, which means that some of the process and record-keeping processes are outdated and archaic. It is very common for law practitioners to keep paper records which is a nightmare especially if you are trying to find a specific document. Another problem that can be detrimental to law firms is the use of old and antiquated technology.
Having old technology leads to downtime and productivity levels will be down. Outages can prevent your legal team to be effective in their work and can affect employee morale. Brief outages can affect meeting important deadlines which can be detrimental to the client experience as well.
Antiquated technology is usually stored on-site which means that it takes up space and you have to assign a department or have a third-party IT professional perform updates. Poorly maintained technology is prone to attacks and viruses which can essentially halt your business operations.
With cloud-based solutions, you will have a single source of truth that is easily accessible from any location. This also provides users with access to the information being held which increases productivity and minimizes the time spent looking for the correct information.
If you are using multiple software solutions, you can switch to an entity management software that will take care of all your needs and act as a one-stop shop. A cloud-based entity management solution can facilitate the transfer of data between all applications and help with integration.
Reliance on Manual Data Entry
Having an antiquated technology and process in place also goes hand in hand with manual data entry which is a laborious and time-consuming process. When you are relying on a manual process for data entry, it takes much longer and you are prone to errors. Because of the number of hours that paralegals and legal teams spend on manual data entry, it can lead to less time spent on billable working hours. This results in a lower return and profitability for the law firm.
Modern solutions to data entry include automating the forms which ensure data accuracy and all the pertinent fields are filled out. Forms that are filled can also be safely secured in cloud-based solutions which lessen the risk of a data leak or information being stolen or misplaced.
Lack of Transparency With Workflow Processes
When you are delegating tasks to different people, it is hard to keep track of the progress without using entity management software. Legal teams suffer from incomplete tasks and missed deadlines which can negatively affect the compliance piece. It can also lead to dissatisfied clients and shareholders who are expecting deliverables.
Having transparency in the workflow process is essential especially for corporate subsidiary management because it can get complex and harder to track. With entity management software, you can assign tasks to team members and highlight due dates to make sure that they are on track. This further increases transparency because everybody can see the process clearly and be accountable for what needs to be done.
Enabling a higher view of the workflow hierarchy also promotes collaboration between legal team members and paralegals.
Benefits of an Entity Management Software
Having an antiquated process is prone to downtime which can affect the team’s productivity and lead to mismanagement of entities. All the pain points that come with outdated technology and manual processes can be alleviated with a move to cloud-based entity management software that can help you boost productivity levels and efficiency. Explore the product here.