Entity management software simplifies the way commercial real estate (CRE) professionals manage entities and organizational charts.
As the commercial real estate industry transitions from spreadsheets to technology, it becomes increasingly important that firms identify modern solutions to manage and meet critical business goals.
Defining Entity Management and Entity Management Software
Entity management and entity management software are an obvious match. But how do we define the two and how do they work together?
What is Entity Management?
“Entity management” is the practice of managing a company’s legal information and documents to ensure compliance and governance. As businesses grow and evolve, their corporate entity management needs and compliance requirements become increasingly complex. A recent EY study shows 89% of companies face challenges in managing their legal entities. Thus, entity management software helps to address these challenges and improve operational efficiencies.
What is Entity Management Software?
“Entity management software” helps firms manage entities, build and manage complex org charts, and track deadlines in a single location. Without an entity management solution, firms are exposed to unnecessary errors and risks caused by outdated and manual processes. Ultimately, entity management software exists to help businesses gain control over their entities and the ensuing responsibilities.
Benefits of Using Entity Management Software
The more entities a firm has, the more complicated it becomes to juggle important information, data, and filing deadlines. Entity management software simplifies the legal entity management process, saving both time and money.
Best-in-class entity management software helps teams:
Centralize and secure entity documents and data
A centralized database is important for storing and securely sharing data and other sensitive information. A single source of truth prevents data and documents from being shared across multiple unprotected sources. Centralized data also creates opportunities for teams to collaborate more efficiently and effectively.
Build and update organizational charts with ease
Every organization needs a formally documented organizational structure. The org structure should clearly represent your investors, shareholders, stock classes, and more. Entity management software simplifies building and updating org charts, enabling your team to focus on other value-add activities.
Eliminate manual processes
The commercial real estate industry has been slow to adopt technology. Over 60% of commercial real estate firms use spreadsheets as their primary reporting tool. Almost half of CRE teams spend 15-25% of their time manually managing and organizing data. Entity management software automates the manual processes that slow your firm down, improving and building confidence in the firm’s operations.
Pain Points and Challenges Addressed by Entity Management Software
Commercial real estate professionals face many challenges including fielding daily requests for data, managing multiple legal entities, and navigating disparate systems. An entity management solution addresses the following pain points and challenges:
Managing annual compliance and filing deadlines
The pressure is high when managing multiple compliance and filing deadlines for multiple entities. Missed reporting deadlines can result in avoidable fees that impact your bottom line and hinder organizational growth. Entity management software gives you the tools to monitor and track important deadlines so that you never miss a due date.
Managing multiple legal entities
Managing legal entities can be complicated – especially when you’re responsible for dozens or even hundreds of them. Entity management software enables you to assign values to your entities, view ownership percentages, and create custom cap tables.
Reducing reporting and data errors
Historically, the commercial real estate industry has relied on Excel for reporting. The problem is that manually input data often contains multiple errors buried throughout the spreadsheet. Entity management software reduces human error and prevents misplaced and inaccurate data caused by disparate systems.
Choosing an Entity Management Solution
Entity management software is a powerful tool to keep your firm on track as it grows. Implementing the right solution can eliminate error-prone, time-consuming manual tasks that prevent teams from focusing on other valuable, revenue-generating work.
The following features should be prioritized as you evaluate entity management solutions:
- Ability to track compliance due dates and receive automated alerts
- Data sharing security measures
- Centralized data and document storage
- Robust org chart builder
Partnering with the right vendor and investing in the best entity management software can be an easy win for your firm. Forward-thinking firms understand the opportunities an entity management system creates and are embracing it as an essential part of their tech stack.
Get Started with EntityKeeper
EntityKeeper reduces manual errors and increases security when it comes to your corporate data. Ready to track entities and streamline entity data across your organization? Get started with EntityKeeper today or request a demo to see the solution in action.