If you're planning to grow your business, you likely have a lot on your plate. There are new employees to hire, processes and procedures that need to be adapted for growth, and tools that must be updated. But there's one thing that can get overlooked during this time: entity management. In this article we'll explain why it's so important for companies to keep their entities organized as they expand, what role entity management software plays in the process of expansion, and how you can use an entity management system yourself to help make scaling easier for yourself.
Neglecting Entity Management Can be a Costly Mistake
The cost of not managing entities is significant. Your business can't scale if it doesn't know what it owns, who owns it and where the information is stored. The most common mistake companies make when they grow is neglecting entity management software because they think it's just too expensive or difficult to implement. In fact, many don't even realize that there are solutions available for smaller businesses that can help them manage their entities at an affordable price point (and without hiring consultants).
The cost of hiring a consultant will quickly add up--you'll have to pay an hourly rate plus expenses like travel expenses and lodging costs on top of all those hours spent learning about your company's data structures before they even begin working on anything meaningful! If this sounds like something you'd rather avoid altogether, then consider using an off-the-shelf solution instead; one that allows small businesses with limited resources access detailed reports without having to hire expensive outside help
When You're Growing, Keeping Track of Everything Can Be Difficult
When your business is growing, it can be difficult to keep track of all the entities in your company. This is especially true when you have multiple locations or divisions operating under different legal structures.
For example, if one location is an S corporation while another is a C corporation, each entity has its own set of tax rules and reporting requirements. In addition to keeping track of these requirements for each entity type separately, you also need to know how much money is being transferred between them so that none falls through the cracks.
Entity management software helps with this by allowing users to create an account for each entity type used by their company--including subsidiaries and foreign entities--and then generate reports showing how much money was transferred between these accounts over time.
Staying Organized with Entity Management Software
Entity management software is a cloud-based solution that helps you stay organized. It allows you to manage your customers and vendors, as well as manage your business processes and finances.
Entity management software is an essential tool for a business owner who wants to scale their company. It takes away the stress and complexity of managing your entities and allows you to focus on growth. As a result, you can spend more time on what matters most: growing your company as well as improving its efficiency by making better decisions faster.
Stay Organized and Your Organization Can Grow
As your business grows, it's easy to get overwhelmed by the number of entities you need to manage. You'll need to hire more employees, who will each have their own information in your system. You'll also want a way of keeping track of customers and suppliers, which can be done through an entity management tool. This software makes it easier for you to focus on growth while still staying organized as a growing business owner. So you can grow faster, in a more efficient way.
Here at Athennian we want to help you grow. Schedule a free custom demo with one of our entity management experts today.