As real estate developers grow in size, they can no longer rely on old practices for managing their legal entities. Trying to solve new challenges without changing the underlying approach often leads to cost problems, hinders growth and creates pain points for collaboration with internal and external actors.
Instead, real estate developers can have a single source of truth for their corporate records by switching to entity management software, benefiting from improved task flows, well-organized data, auto-populated templates and org charts. Keep reading to find out more about how legal entity management software can help real estate developers thrive and scale up by automating their governance and compliance.
Scaling Up Effectively
Most real estate developers aim to focus on growth and development of their organization instead of spending time and effort on internal compliance. A modern legal entity management software can assist in achieving this in many ways, including:
• speeding up the creation of new legal entities,
• digitizing your minute books,
• ensure effective compliance work.
Speeding Up Creation of New Legal Entities
The manual process for creating new legal entities can be extremely ineffective and time-consuming. It may take hours or sometimes even days to collect necessary documents, fill the required forms, exchange files by email, get physical signatures, make copies of paper documents and include information about new entities in various spreadsheets. Meanwhile, real estate developers working with entity management software like Athennian can create new legal entities within minutes using auto-populated forms, virtual minute book functionality and electronic signature capabilities.
Digitizing Your Minute Book
When your minute books are all over the place in both paper and scanned format, your entity records become hard to access and manage. In such situations, corporate paralegals have to spend unnecessary time looking for information and struggle with filing and compliance.
Meanwhile, those real estate developers, who digitize their minute books, enjoy streamlined collaboration both internally and externally, create a single source of truth for all their legal entity records and significantly improve their compliance work. Keeping your virtual minute book updated and organized becomes essentially a plug-and-play process taking minutes instead of hours or days.
Ensuring Effective Compliance Work
Effective compliance is a key element of legal entity management, which is practically impossible to achieve when the team is struggling to find old data and documents spread across all types of places. Having to spend numerous hours retrieving necessary documents leads to frustration, missing important deadlines or even fines for non-compliance.
When real estate developers switch to entity management software, most filings become automated, making compliance much easier. The teams get less stressed about deadlines by scheduling important reminders, keeping everyone in the loop and receiving signatures on important compliance documents just in time.
Migrating from Spreadsheets and Improving Task Flows
When real estate developers migrate from spreadsheets to legal entity management systems, they increase data visibility across the whole organization, saving a lot of administration time for core activities.
It is a well-known fact that 88% of spreadsheets contain errors, while many of these errors can lead to costly mistakes. At the same time, making necessary corrections and reconciling various spreadsheets is extremely time-consuming and ineffective practice, which often results in even more mistakes, missed deadlines and dissatisfaction. In many cases, when real estate developers start entering their data in spreadsheets, they find that not all data truly fit into those spreadsheets, which leads to creating new templates, disorganized data, repeated work and more errors.
Instead, transferring corporate records to a cloud entity management platform allows creating a centralized database for company records, access data remotely from any device and ensure smooth interaction. Working in entity management software allows to cut human error, exclude repetitive work and inconsistencies and increase the overall quality of corporate data.
Get Ready for Investment Rounds, M&A and Other Transactions
As real estate developers go into an investment round, merger and acquisition or other transactions, they need to have all their corporate data at their fingertips and quickly visualize ownership relationships and corporate structure on org charts. Entity management software allows creating a centralized place to store all legal entity data, which can be auto-populated into org charts, created automatically by the platform.
Automating Org Charts
Org charts are an indispensable tool for any real estate company, allowing to quickly view and represent the most complex ownership structures. When the teams try to create org charts manually, they have to retrieve necessary information across all types of places, documents and spreadsheets, reconcile those data and transform them into an org chart. Needless to say, this process can be extremely tedious and inefficient, especially with a larger number of entities, inevitably leading to mistakes and poor functional org charts.
When real estate companies have access to an entity management software like Athennian, they can build org charts automatically from entity data stored on the platform. They can further leverage rich functionality provided by the software for showing various details, upward and downward connections, tax structures and other necessary information on their organizational charts.
Have All Information about Your Corporate Structure At Your Fingertips
By moving all their records into entity management software, real estate developers can surf among their entity records instead of struggling with searching for important documents among multiple locations.
When all information about legal entities is centrally stored on a secure cloud platform allowing automation of core managing processes, real estate companies can focus on their primary activities instead of administrative hurdles. They can safely engage in KYC, M&A or investment rounds, having peace of mind with well-organized data no matter the number of legal entities in their corporate structure.
Learn More About Entity Management with Athennian
A modern legal entity management software has much more to it, helping real estate developers handle their administrative struggles with entity management and making scaling up a breeze. For more information about how Athennian can help you manage any number of legal entities, automate creation of new entities and org chart your business, please don't hesitate to book a customized demo with our business entity management expert.