What the Future of Entity Management Looks Like
With the holiday season in full swing, and as 2023 comes to a close, you may be wondering: “what gift can I give my organization that will keep on giving through the new year?”
We propose: the gift of automated entity management software. Sure, on the surface it may not be as flashy as, say, a new espresso machine for the office, but just think of all the exciting things you’ll be able to do once you reclaim your time from the hellish vortex that surrounds non-compliant entities (martini lunches, anyone?).
A few short years ago, the concept of “legal entity management” was just starting to gain traction. But, by now, most organizations understand that having a reliable entity management process won’t just save them time – it will also save them money and help them gain a competitive advantage over peers. So, if you’re looking for a gift that will future-proof your organization, consider investing in the easy win that is automated entity management software.
Now… when we say “automated” we aren’t talking about the “automated” software of yesteryear (aka the ones that only “automate” notifications… that remind you of all the work you still have to do). No, we’re talking about automation in its most literal sense (aka software that does the work for you). We’re talking about where the future of entity management resides (and where, for some, it’s already arrived – wink).
As you shop for that perfect entity management software gift, choose one that will not only serve your organization today, but also tomorrow (and all the tomorrows after that). Don’t settle for a “solution” that you’ll outgrow by 2025. Pick one that aligns with where the future of the industry is heading. One that’s adaptable, transparent, centralized, customizable, secure and strategic.
Adaptable
Keeping legal entities compliant becomes a little more challenging every year. Regulations and filing requirements – which vary from state to state and country to country – are updated regularly. Who has the time to keep up with all those little, run-of-the-mill amendments? Presumably, not you.
Further complicating matters, new, industry-shaking regulations sometimes arise. The latest cause célèbre? The Corporate Transparency Act (CTA). The Act, which is scheduled to take effect on January 1, 2024, will require the beneficial owners of reporting companies to submit identifying information about themselves and their organization to the Treasury Department’s Financial Crimes Enforcement Network (FinCEN). The maximum fine for non-compliance? $10,000.
Amid those high stakes, and that constantly shifting backdrop, do you really want to trust your entity management process to software that isn’t on the ball, an unreliable registered agent (RA), or a spreadsheet? Again, presumably, you do not.
For your sanity (and pocketbook), your entity management process must be handled by software that’s capable of monitoring and adapting to evolving requirements. That way, you can be confident that your organization is steadfastly compliant – without having to constantly wade into the swirling regulatory waters yourself.
But merely keeping pace with external changes isn’t enough. Future-oriented entity management software will take your business’ evolution equally into account. If your organization is scaling – or plans to scale in the near future – its entity management process must, too, be scalable. A stagnant, inflexible process is old school – and won’t serve your organization (or keep it compliant) as it grows. In practice, that means adding new or dissolving old entities should be as simple as clicking a button or two.
Transparent
Cars can drive themselves. AI can write (pale imitations) of books. Virtual reality technology is now more science than fiction. Asking for transparency when it comes to entity management… is not a huge ask. In fact, transparency should be a bare minimum, nonnegotiable requirement from entity management providers.
Any solution worth its snuff should be able to immediately tell you:
- The status of your entities
- The status of compliance-related tasks
- Whether action is needed on an entity
- Whether your entities are compliant
- Where to find data about your entities
- Who is responsible for entity-related tasks
It’s really as simple as that.
Key to that transparency? A user-friendly interface and navigation. A future-oriented entity management solution will have a platform designed by people who understand you don’t have hours to scour poorly organized tabs and buried folders for the data you need. Instead, all the information you need to access should be available to you in just a couple of clicks.
Centralized
When businesses use a hodgepodge of spreadsheets, spotty trails of communication with RAs, and squirreled away files to manage entities… a lot can go wrong – and get lost between the cracks. And let’s be real: siloed data is so last year. Back away from the spreadsheet, and put down the pile of miscellaneous, printed out emails. Step confidently into the beating heart of entity management’s future: a cloud-based, centralized platform.
Because entity management is, often, a chaotically choreographed dance between various departments and stakeholders, the process must be centralized to be effective. When management revolves around a single source of truth – and not a jumble of decentralized data – the process is not only more dependable, it’s also (unsurprisingly) much more efficient. And what’s more future oriented than that?
Customizable
Software that’s “one-size-fits-all” should give anyone pause. As we steer solidly into the mid-2020s, customization is the (achievable) name of the game. And the right entity management software will understand – and reflect – that.
That means, when it comes to your entity management process, you are in control. You should be able to assign users to different roles on the platform, control how involved you are in the process, and view your entities in a way that makes sense to you (in either a list or org chart view). Any entity management solution that doesn’t give you control over the process isn’t forward-thinking enough.
Secure
At its core, the purpose of proper entity management is to reduce risk. It follows that any platform that helps you manage entities should neutralize the risks of file leakage and data breaches.
The right entity management provider will be on the cutting edge of security. They’ll use a state-of-the-art cloud-based platform trusted by the world’s largest organizations to ensure the highest security for your data and shared files. And, as technology continues to evolve, and new security threats arise, you should expect your legal entity management system to respond in kind.
Strategic
Here’s a (now open) secret: organizations with properly managed entities have a competitive advantage over those who do not. Non-compliance is 100% avoidable. And, when entities are always compliant, organizations save money and time – which allows them to devote more resources to higher level, more profitable work.
Old-school entity management services were cost centers. Home grown approaches often lead to recurring fines and fees, traditional RAs are money pits (with incomprehensible billing practices), and some pricey “software” providers talk a big game but fail to deliver. The right solution, on the other hand, will deliver a substantial ROI.
Future-Proof Your Organization with Filejet
With a unique combination of service and software that automates U.S. and international annual report, business registration and DBA filings, Filejet is the entity management solution you don’t have to think about, unless you want to. And you don’t even need to wrap it.
Filejet is the entity management platform of the future. The dashboard provides instant visibility you’re your entities, fees, filing dates and documents. It is automated, adaptable, transparent, centralized, customizable, secure and strategic. Whatever can’t be automated will be handled by the Filejet team, which truly is the gift that keeps on giving.