Entity management is a big part of the job for any corporate legal department. The more documents your business builds up, the more complex and essential entity management becomes. That’s why proper entity management is so important.
It’s also why so many businesses feel a sense of anxiety when it comes to outsourcing. On one hand, outsourcing your entity management frees up your team and cuts down on operational costs. On the other hand, it can be challenging to trust a third party with your business’s sensitive information.
The choice to outsource your corporate entity management is not to be made lightly. Here are a few factors to consider when deciding whether or not outsourcing is right for you.
What Is Proper Entity Management?
Let us level-set with the obvious: proper entity management is the oversight and organization of all your business’s documents and key information. When entity data is properly handled, all of your company’s key information is conveniently accessible to track, edit, or review by authorized parties. The organization makes documents easy to find and, in today’s modern world, preferably accessible.
Entity management is a task that is likely to grow as your business grows and you take on more vital documentation. It can be easy to become overwhelmed, especially with varying aspects of legal entity management. With proper entity management, however, the organizational systems put in place make it easy for the business to scale. You know that your entity management system is effective when you can confidently pivot and scale at any time.
Size of Corporate Entity Management Operation
Much of the decision to outsource your corporate entity management comes down to the size of your operation. A small business that doesn’t intend to grow might not need third-party entity management systems. But what about a business interested in local expansion, nationwide growth, or even global operations? These forward-thinking businesses require high-tech, effective entity management.
The more your business grows, the more your entity management needs will increase. It may reach a point where your in-house team is too swamped with other tasks. If you manage hundreds of different entities or entities across various jurisdictions, you may need external help. An outsourced entity management system could be the assistance you need.
Entity Management and Compliance
Entity management is already a detail-oriented task, and the effort becomes greater when you factor in necessary corporate compliance. It’s important that all your documentation is compliant with regulations, including the right citations, language, and security measures. Proper corporate governance and compliance requires managing risk with the best entity management software. If you’re not keeping up with the ever-changing regulatory mandates or you face rising concerns over management, consider an entity management software program.
Excessive Hours on Entity Management
There’s no question that entity management can be a time-consuming task. But does it demand excessive hours from various departments? Most of your employees are responsible for much more than just executing an entity management solution. If entity management takes too much time and effort, it can preclude tackling other essential tasks.
One of the main benefits of outsourcing your entity management is that it saves your legal team considerable time. Your outsourcing team takes all of the hard work of entity management out of your hands. With the right entity management platform, aspects of managing multiple entities and securing corporate data is automated. You get high-quality, compliant results while your time is free to tackle your other responsibilities.
“We’ve heard from many in the field that entity management isn’t necessarily always a priority, but when it’s not done well or is all over the place, it’s annoying work”, said Filejet CEO Andy White. “At the end of the day, it’s often a change in workflows and processes that benefit staff members and move them away from just living with what they have now.”
When you have a chance to strategize your entity management, you can streamline the process, making it easier for everyone involved. But if you spend too much of your entity management putting out fires or trying to stay one step ahead, you lose the chance to devise an efficient strategy. You may be stuck in a strategy that has outlived its usefulness and might miss some innovative new approaches available today. It’s a common problem of being unable to see the streamlined options through the day-to-day tasks.
But an outsourced entity management platform already has a strategy. They are specialists when it comes to entity management, so they know how to make the process as efficient as possible.
What Can an Entity Management Platform Do?
An entity management platform makes corporate entity management a breeze for your business. Through an easily automated, centralized database like Filejet, you can file and form new entities, collaborate with your team to manage entities on any device, and keep your documentation compliant no matter what the jurisdiction. The platform strategizes and streamlines the process for you, so you can simply enjoy your smoother workflow.