The responsibility of entity management is often delegated to an organization’s legal department. However, as you are well aware, the in-house legal team is not the only department with related responsibilities. Your tax and compliance departments also play critical roles.
Entity management has a particularly notable impact on your tax department. If your processes are rigid, antiquated, and inefficient, your tax team will be bogged down with tedious, labor-intensive work. Not only will this harm their morale, but it may also detract from their ability to fulfill other responsibilities.
Conversely, your tax department will reap substantial benefits if you streamline the process by adopting leading technologies. Specifically, streamlining entity management through digital transformation will enable your tax department to:
1. Reduce Reliance on Manual Processes
Redundant manual processes are the enemy of productivity. These tedious tasks provide a relatively low return on investment, especially if completing them requires your tax personnel to put off more dynamic assignments.
Additionally, repetitive tasks can make your staff feel overwhelmed and discouraged. Manual processes are more likely to lead to data entry errors that will create headaches down the line. And finally, redundant tasks can harm staff morale as employees feel their work doesn’t contribute to the organization's success.
Entity management software allows your organization to leverage the power of automation. These tools empower you to automate redundant processes, reduce the frequency of data entry errors, and increase the productivity of your staff.
With so many tedious tasks taken off their plates, your tax department team will have the freedom to focus on more dynamic, value-driven responsibilities. This freedom will lead to improved staff morale while also benefitting your bottom line.
2. Eliminate Data Silos
Data silos are commonplace among organizations that still rely on antiquated entity management processes and a cobbled-together network of technologies. Data silos are created when various departments rely on systems or platforms that do not share information or data with each other.
For instance, suppose that your company’s tax software and entity management solution are not integrated. In this scenario, your tax team and legal team cannot freely share data or access the same pool of information.
The data stored on the tax team’s software may not match the information logged into the legal team’s platform. These discrepancies hinder collaboration, pave the way for compliance and tax filing errors, and damage organizational transparency.
An all-in-one entity management software eradicates data silos and ensures that your tax department professionals have access to all of the critical data they need to fulfill their responsibilities. This functionality keeps everyone on the same page, promotes collaboration, and increases productivity.
3. Improve Compliance Capabilities
The tax department plays a key role in compliance. This role has become increasingly important due to the high volume of regulatory requirements that have been enacted over the last several years.
Like entity management, compliance is a responsibility that is shared between legal, compliance, and tax departments. The easier it is for these departments to communicate, share information, and collaborate, the more effective your compliance program will be.
Optimizing your compliance efforts will enable your organization to avoid fines and other financial penalties. Additionally, achieving and maintaining compliance will build trust between your brand and its clients.
Streamlining entity management through technology will also enable your organization to effortlessly validate the identities of partners and vendors. This will help your tax team vet recipients before sending confidential tax or financial data.
4. Streamline Document Preparation and Submission
Preparing quarterly tax documents and related forms is another labor-intensive process, albeit an important one. As filing deadlines draw near, your tax department is often thrown into overdrive. During these sprints, they are expected to juggle document preparation, compliance, and other tasks simultaneously.
Since all of these processes must be completed by set deadlines, tax teams often have to log extra hours during these hectic periods. This can leave them feeling overwhelmed and burned out. All those extra hours will have an impact on your company’s finances as well, especially considering that you could be spending thousands on overtime.
Fortunately, entity management software can streamline document preparation and submission processes. With the right technology, your tax department can more easily fulfill its compliance, entity management, and document prep responsibilities without logging dozens of extra hours.
Your tax department will be able to prepare crucial documents faster and with improved accuracy.
How Your Organization Can Streamline Entity Management
Streamlining entity management and unlocking the aforementioned benefits requires much more than standard tax software. Instead of tax software that has a narrow operational scope, your organization needs an all-in-one entity management software solution that serves as a single source of data. Athennian provides just such a solution.
The Athennian software platform is designed to eliminate the opacity that frequently causes friction among private companies. Our technology suite unifies tax, compliance, governance, and entity management into a single platform, thereby providing unparalleled transparency.
With our cloud-based software solution, your organization can modernize its tax-related processes while also promoting trust in your business and its operational integrity. In turn, this will foster positive relationships between partners, clients, vendors, banks, governments, investors, and other stakeholders.
Stop allowing compartmentalization among your critical departments to undermine productivity and profitability. Instead, explore the Athennian solution and accelerate your digital transformation efforts.
To get started, schedule a customized demo with one of our entity management experts.