Have you been looking for ways to protect your company’s certificates of incorporation, partnership agreements, and other foundational documents from breaches and cyberattacks? Do you need a safer way to share confidential documents with external stakeholders? Wouldn’t it be great if you could use a central repository to organize all your corporate data?
Did you just nod your head in agreement with any of the above questions? Then chances are you’ve already contemplated using legal entity management software.
Entity Management Software: A Closer Look
Modern cloud-based entity management systems come with a plethora of features and security enhancements. They provide you with a centralized platform to assemble and share corporate data. The best part is that you can control who has access to what data.
Entity management software helps both legal and corporate teams utilize corporate data to the fullest. A browser-based entity management system lets team members access various files and documents from any device of their choice.
But the hefty price tag associated with many of the leading entity management systems could be deterring you from taking the plunge. Also, some of these applications involve a significant learning curve. You may even need professional help to configure the software.
If you’ve been skeptical about investing in a corporate entity management software solution, we’ve got you covered. In the following sections, we’ll outline a few lesser-known benefits of using corporate entity management software. Let’s get started.
1. Preserving Data Integrity
In the absence of entity management software, various departments will maintain their own repositories of corporate data. They’ll likely use Excel spreadsheets to store and update the data.
Such a decentralized approach results in the creation of multiple copies of the same data. That, in turn, leads to data redundancy and miscommunication. For instance, legal and accounts departments might be using different versions of income statements while renewing licenses and filing taxes.
In the long run, these discrepancies could result in penalties and lawsuits.
Entity management helps avert such consequences by acting as a single source of truth. It creates a focal point for storing and sharing corporate entity data. This, in turn, helps maintain the integrity of business documents.
2. Increased Accessibility
Entity management software eliminates the need for the physical sharing of business documents.
Also, it doesn’t require employees to visit an actual data room and scour through numerous files. Instead, they can access any corporate data as long as they have a stable internet connection.
It’s particularly crucial for today’s distributed workforce.
3. Protection Against Cyberattacks
The COVID-19 pandemic has served as a catalyst for the digital transformation of companies. While it’s crucial for maintaining business resilience and skyrocketing productivity, the increased dependence on digital technology comes with a downside.
It makes your organization susceptible to data theft, breaches, and cyberattacks. Established companies, such as Colonial Pipeline and Accenture, have become recent victims of ransomware attacks.
That emphasizes the need to prevent unauthorized access to corporate data and confidential documents. The good news is that modern entity management systems are packed with sophisticated security features, such as single sign-on, two-factor authentication, and data encryption.
Also, you can use role-based access control to prevent unnecessary access to confidential data. It’ll prevent employees and external stakeholders from viewing sensitive information about your business.
You can further enhance security by combining the entity management system with a robust virtual data room (VDR). A VDR serves as a cloud-based repository for all your official documents. It comes with various security features and is instrumental in facilitating hassle-free due diligence.
4. Efficient and Strategic Thinking
This is one of the most overlooked benefits of corporate entity management software. It helps automate various processes, such as tax filing and report generation.
This, in turn, minimizes the burden on legal and corporate teams. Instead of worrying about storing and protecting data, they can focus on developing new strategies for better governance and compliance.
Also, they can outline a robust plan for mitigating various business risks.
5. Improved Compliance
A high-quality entity management system creates an organized framework for regulatory compliance. It ensures that all departments, including legal, accounts, IT, and more, are up to speed on the latest compliance requirements.
You can even use the software to set reminders for filing taxes, applying for license renewal, paying insurance premiums, etc.
Also, entity management software logs activity data, thus providing you with an overview of actions taken by various employees. That comes in handy for holding them accountable for mishandling crucial data.
As businesses adopt digital technologies and remote work policies, entity management software will become integral to their growth and success. Apart from securely storing corporate data, it offers various benefits, including improved compliance and accessibility. Make sure you choose a solution that fits the needs of your business and industry.