Ensuring your entities are compliant across the country can be difficult. Oftentimes companies employ an individual or team of individuals to specialize in this area. They know the ins and outs of everything entity compliance which gives you confidence in the status of your entities. But considering employees are fleeing the workforce at an unheard-of pace you may find yourself in a bad spot when they leave. Tenured employees who leave take a wealth of knowledge with them that is irreplaceable. And when dates and deadlines matter to keep your entities in good standing, scrambling to figure out what to do and when to do it may leave your company venerable to serious issues and the risk of non-compliance.
Entity compliance is critical and requires a unique level of knowledge to ensure your business entities are in good standing.
Your entity compliance processes seem to be working fine with everything running smoothly. However, your workflows likely consist of multiple vendors or spreadsheets housing the exact same data. If you needed to identify how many entities you have and if they are in good standing, how quickly could you do it? Are you confident your data is accurate across all versions of software systems or spreadsheets? The truth is you likely have some variance somewhere. In fact, according to Deloitte, 23% of all spreadsheets contain errors². But finding and fixing the problems can be time-consuming and challenging. It is especially difficult when you’ve lost key employees who, for years, have managed these systems or spreadsheets and maintained relationships with all those involved in your entity compliance obligations. With no room for error, and no single source of truth, you’re stuck facing your entity compliance chaos alone in the most crucial moments.
Your current entity compliance process leaves you with a false sense security.
Without an entity compliance contingency plan in place to combat workplace disruption, your company is creating unnecessary risk. According to Gartner, Inc. domestic employee annual turnover is expected to jump to approximately 20% equating to 37.4 million employees quitting their current jobs in 2022³. Considering these numbers may continue to rise, now more than ever you need a solid entity compliance contingency plan to ensure you maintain good-standing while meeting all compliance obligations. Who in your organization can fill the gap if key employees leave? Do you have vendor that can act as an extension of your team, working on your behalf to keep everything running smoothly? Identifying a contingency plan will help close your risk gap allowing you to ensure important compliance obligations don’t get missed or overlooked.
Your entity compliance lacks a contingency plan.
When it comes to unnecessarily wasting time and money the simple fact is no one can afford it. Without a single source of truth for your entity compliance data you can expect to be coordinating data mayhem when you lose key members of your team. Consider all the activity your company is currently engaging in to keep your entity compliance running smoothly, from law firm and vendor management to coordinating deadlines and other stakeholder engagement - which is just the tip of the iceberg. At any given moment you need to be able to provide quick answers on entity compliance topics. Even the most basic questions can be challenging to answer accurately if your data isn’t housed and maintained in a single location. Questions regarding new regulations or merger and acquisition activity will often come your way from your board and they expect an immediate answer.
Tackling entity compliance without a single source of truth is pure chaos.
It’s common for companies to work with a provider, or providers, to seek assistance with their entity compliance efforts. But are the processes in place truly helping to reduce your entity compliance burdens? Or do they add to them?
Consider the questions below:
Is it easy to reach your entity compliance partner when you need them?
Do you have a clear dashboard view of your entities for more effective
monitoring and oversight?
Are your entity compliance systems fully integrated through one
platform with one login?
Can your entity compliance partner offer a full suite of entity management
services eliminating the need for more than one partner?
If your answer to even one of the questions above was ‘no’, it’s time to start
re-thinking your current entity compliance process.
Utilize a partner that can help streamline your entity compliance and reduce your workload.
Now more than ever your entity compliance obligations need to be driven by innovative technology and supported by industry experts who take a proactive approach to managing your entity compliance with precision. When your entities are professionally managed by experienced professionals whose focus is to act as an extension of your team and keep your company in good standing you are alleviated of the stress and constant worry that critical obligations are overlooked. And, while workplace disruption may continue to occur in some form or another, you’ll be confident in knowing you have a trusted partner that can work on your behalf keeping your entities compliant through proven processes, dedicated support and innovative technology.
And beyond the ability to access your information quickly is data accuracy. If you’re currently using spreadsheets or multiple entity management systems, you’ll have to keep them all up to date.
A single discrepancy in your data can create serious errors in your reporting and fillings, causing the inability to ensure your entities are in good standing. Companies across the country are experiencing these issues. And, because these challenges have become more evident over recent years 71% of boards have identified digital technology as a top priority to help achieve in timely, collaborative and efficient risk management⁴.
Data accuracy is extremely crucial come annual report filing time (which, not to put the pressure on, varies by state in terms of deadlines and required data). Compiling the correct annual report data and filing it accordingly is what keeps your US registrations in good standing. Again, a must for a successful business. Not adhering to each state’s entity requirements will quickly put your business at risk for fines, penalties, and worse – business license revocation.
Entity compliance
is critical and requires a unique level of knowledge
to ensure your business entities are in good standing.
Your current entity compliance process leaves you with a false sense security.
Your entity compliance lacks a contingency plan.
Tackling entity compliance without a single source of truth is pure chaos.
Utilize a partner that can help streamline your entity compliance and reduce your workload.
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