If you’re running a business, especially one with multiple subsidiaries, we’re sure you have learned by now that you can’t do it all by yourself. Even with multiple employees working to ensure compliance across several jurisdictions, you may still find yourself wondering whether your subsidiaries have the tools and resources necessary to stay afloat and sustain the business growth you plan.
This knowledge base spans many different positions. Whether you are a business owner or an internal tax, legal, or finance team member, it’s important that you have some sort of organizational system in place that helps you easily and securely keep track of your entities, collaborate, save time, and view documents when you need, wherever you need.
Entity management software, like the one offered at Athennian, allows you to streamline all of your company’s information and that of its subsidiaries so you can get it to the right people, regulating body, or stakeholder at the right time.
Managing businesses in different geographic areas is a feat that naturally comes with financial risk. The more subsidiaries a company owns, the more complex it is to ensure compliance and governance spanning each one. Entity management software can grow with your business by helping you regulate your numerous subsidiaries in the following ways:
Business tax code is confusing enough as it is with a single proprietorship, but it can be exponentially more confusing when you have multi-jurisdictional subsidiaries that you need to ensure remain audit ready. An entity management software can ensure your company’s financial team can access, input, store, sort, and analyze importance tax information in a centralized source of truth.
By automating your tax governance process, you can remain tax compliant across your subsidiaries and reduce the risk of financial penalties that often result from noncompliance. Your internal legal teams can also more easily utilize this stored data in order to brainstorm ways that your company could save money when filing.
Unlike sole proprietorships, corporations with subsidiaries in different geographical areas often require several attorneys to ensure regional, national, and international compliance. This is especially true as business operations become more globalized and multiple subsidiaries are created.
Problems arise, however, when departments within a corporation and across subsidiaries fail to establish a pathway to effective communication and real-time collaboration, which ultimately leads to friction, confusion, and noncompliance with necessary regulations. An entity management software can be utilized in order to provide an established and common framework for activities across all subsidiaries.
Reduce Liability Risks
Having multiple subsidiaries helps to protect the parent company and its assets from liability risks by keeping the risk limited to only one subsidiary. However, there are ways that you can limit the risk to your subsidiaries in the first place. For starters, systems from the top of the company going down to each and every subsidiary must be streamlined in order or ensure compliance and protect company assets.
With a cloud-based entity management software, you are able to limit your exposure by implementing a framework in which you can maintain quality of your overhead and visibility of processes. Such software provides a secure place for you to store data while maintaining a high level of safety of cyber risks as well.
Having an entity management software can assist you in maintaining your current subsidiaries while allowing you room to grow even more. One way you can do this is by prioritizing corporate transparency across your subsidiaries, which helps build trust in your company as a whole. No one wants to work for an employer or company that they don’t trust. Even if they do, most employees who feel their companies lack transparency will find it difficult to stay motivated.
Cloud-based entity management software can maintain a consistent stream of information and support across subsidiaries in order to increase transparency and shared knowledge across the entire company. Employees who are committed to the shared company vision are more likely to be productive and truly strive to improve, grow, and be successful at their jobs.
Streamlining Day-To-Day Processes
In an increasingly complex business world, it has become imperative that corporations have transparent and clear oversight of daily processes across all subsidiaries. There are only so many hours in a day. While there’s no way to get more time, there is a way to increase the amount of work that can get done in any given amount of time through time-saving and efficient workflow and processes.
Entity management software can help you optimize processes and automate workflow where possible, thus saving your employees time spent performing tasks they don’t have to. This way, they feel like their time and their work is worth more while you can simultaneously reduce your day-to-day costs.
You’re not just able to implement these processes, but you’re also able to monitor their effectiveness using entity management software. Plus, you can have more time to actually run your business instead of stressing about compliance and managing processes.
A Single Source of Truth at Athennian
At Athennian, our mission is to help companies overcome operational and productivity issues often caused by outdated and inefficient technology while ensuring a singular source of truth that can be accessed from anywhere in the world. With our cloud-based entity management software, you can be confident in the business decisions you are making in real time. Request a customized demo with a legal entity management expert from our team today!