According to Ernst and Young, 89% of companies face challenges managing their legal entities. And although many organizations use purpose-built legal entity management technology, 96% of businesses report issues with their systems. These roadblocks may include having a platform that is too complex, lacks security features, or doesn’t foster effective collaboration. And when organizations have problems with their entity management solution, product usage (and the tool’s effectiveness) typically decrease.
When your organization invests in new technology, the goal is to choose the best tool that will provide a solid return on investment (ROI). The longer you have the product and the further removed you are from the initial implementation costs, the faster you’ll see the tool’s value increase. You’ll also be ready to present a solid argument to stakeholders and decision-makers about why entity management software is the best route forward for your company.
But measuring and proving the ROI of an entity management software isn’t always easy. By taking the time to identify ROI opportunities, you’ll be able to clearly see the benefits of your entity management software.
What Is Return on Investment?
Before we dive into the four areas you can realize results from an entity management software, it’s important to understand return on investment. Return on investment is a calculation that shows the money, time savings, and more gained from an investment in relation to its costs. You’ll want to understand the potential ROI of entity management software prior to purchasing. After implementing the software you can also keep track of the return over time.
Read ahead to learn four key areas where entity management software can provide a return on investment.
Entity Management Software ROI #1: Save Time
On average, organizations spend 18 hours every month modifying, consolidating, correcting, and updating spreadsheets. Additionally, the average employee spends 40% of their time on manual tasks that could be automated. In simple terms, manual processes can take a lot of time out of your team’s day – time that could be focused on more value-add activities for the company.
With automation, your team can get more work done in less time. Entity management software automates manual tasks, such as data entry, complex org chart creation and maintenance, and document and data collection.
Entity Management Software ROI #2: Save Money
Compliance is a critical factor of entity management. Organizations of all types and sizes, whether public or private entities, for-profit or nonprofit, state, or federal are exposed to compliance risks. Compliance risk is an organization’s potential exposure to legal penalties, financial forfeiture, and material loss, resulting from a failure to act in accordance with governing laws and regulations and internal policies.
On average, organizations lose $5.87 million in revenue for each non-compliance activity, such as missed filing deadlines. Additionally, non-compliance costs are twice that of simply paying annual compliance fees. Entity management software eliminates the guessing game of remembering annual due dates. With automated alerts and email notifications, you will never miss a due date.
Entity Management Software ROI #3: Eliminate Data Silos and Boost Productivity
On average, employees waste 5.3 hours every week waiting for data from their colleagues–or recreating information that already exists. In this time, value-add activities may be neglected, and revenue-generating opportunities may be missed.
Entity management software frees up time for your team to focus on more engaging tasks, such as developing strategy or working with clients. Automated document management tools can help you keep track of important legal documents in a single location. By automating document management, your firm saves time and can avoid mistakes caused by misplaced, siloed, or outdated information. By eliminating manual processes and reducing data silos, your teams can achieve more in less time, boosting performance and productivity.
Entity Management Software ROI #4: Reduce Security Risks
Since the start of Covid-19, 2/3 of organizations experienced a 25% increase in cyberthreats. And in Q2 2022, about 52 million data breaches were reported. Security breaches can impact your company’s data, revenue, and reputation, so it’s important to protect the organization from such threats.
Entity management software stores all of your legal documents and data in one secure location to protect your organization from data breaches. EntityKeeper is a cloud-based solution, meaning all of your sensitive documents and data are conveniently stored in one secure location. The EntityKeeper platform uses single sign-on (SSO) capabilities to securely authenticate login with one set of credentials. SSO enables you to monitor which apps employees are using, protect important information with secure login credentials, and access your account with added convenience and ease.
Get ROI Faster With EntityKeeper
Entity management software, like EntityKeeper, has tons of tools and features that are sure to give your organization a boost in performance, time savings, cost savings, security, and more! Schedule a demo to learn how your firm can manage entities, build & maintain complex org charts, and track filing deadlines in one secure platform.