10 must-have features in the best entity management software
In today’s interconnected global business environment, managing legal entities efficiently is one thing organizations can’t afford to get wrong. Entity management — and entity management software along with it — plays a pivotal role in streamlining and securing compliance, governance and risk management. However, in an entity management solutions market valued at $12.7 billion, how do you know which is truly the best entity management software for your business?
Choosing the right entity management solution for your organization requires a closer look at the features that drive organizational compliance, facilitate governance and manage risk across jurisdictions.
Key features of the best entity management software
1. Centralized data management
Business today is more data-driven than ever; one report estimates that the average enterprise stores approximately 23.1 billion files. Now, imagine that those files are dispersed across subsidiaries and jurisdictions, creating data siloes that can create inefficiencies and even errors.
The best entity management software should centralize data management to create a single source of truth across the entity. Centralizing data creates a robust foundation for compliance with legal and regulatory requirements and aids better decision-making because leaders will have accurate data at their fingertips.
This is particularly essential as entities grow. Consider an international construction and real estate company with a strong foothold in the Middle East and surrounding regions. As their legal entities grew and succession planning loomed, they needed a better view of the corporate structure to make decisions that would protect their legacy.
Adopting a tool like Diligent Entities unlocks a centralized system for managing entity data and documents. It also helps track regulatory changes and international banking details.
2. Ease of use and scalability
The best entity management software is the one your organization can use easily and reliably. It's crucial to acknowledge that not all legal professionals are tech experts, and yet, the demand for technological proficiency within legal teams is increasing.
Above all, look for a tool that simply does what you need it to do. Intuitive user interfaces can enhance productivity by reducing the time it takes to enter and report data, communicate between departments and even collect signatures.
Entity management software users told Forrester in the recent Total Economic Impact (TEI) study of Diligent Entities that simple interfaces can have a meaningful impact on the bottom line; data collection takes minutes instead of weeks, and people trust that the information in Entities is accurate and up-to-date.
3. Compliance and regulatory tracking
Staying compliant in a landscape of ever-evolving regulatory and legal priorities is a challenge organizations must consider. That challenge multiplies with every entity and jurisdiction you add. While manual entity management — and many entity management tools — can’t keep up with changing laws and regulations, the best entity management software can.
Consider features like automated tracking, alerts and notifications that inform your team of any changes that could impact your operations. Comprehensive reporting can also allow you to generate detailed compliance insights quickly, providing transparency for audits, inspections and critical board decisions.
Look also for a tool with multi-jurisdictional compliance capabilities. Companies like global energy corporations with a merger-driven growth strategy need software like Diligent Entities to manage legal entities worldwide.
In an environment with frequent mergers and acquisitions, the sheer volume and variety of entities significantly increase the compliance burden. The right software can reliably track regulatory requirements and changes, drive reporting efficiency and reduce the risks and costs associated with expansion.
4. Simple integrations
Effective entity management is multi-faceted and overlaps with multiple different functions. As such, software that siloes entity management is likely to do more harm than good. After all, entities have employees to manage and customers to satisfy, and the processes for doing both can have a tangible effect on entity management.
The entity management software you choose should have robust yet simple integration capabilities, ensuring you can connect entity management to other mission-critical functions. A global pharmaceutical corporation, for example, manages data across systems and jurisdictions, increasing the risk of data inconsistencies.
Using Diligent Entities, that same company could more easily integrate entity management with functions like HR. The seamless API drives even greater efficiencies by facilitating data transfer across systems, making critical data available across the organization without compromising on strong access controls for sensitive information.
5. Security measures
Data breaches and cyber threats are increasingly sophisticated. Yet, solutions for safeguarding entity data haven’t always kept up, nor have they accounted for laws and regulations that hold entities to a high standard for data protection.
The best entity management software will embed advanced security features to keep sensitive data from being accessed by the wrong hands. For example, Diligent Entities integrates measures like AES 256-bit encryption, the industry-leading standard for protecting data transfer and storage. This level of security makes it nearly impossible for unauthorized parties to access your information — though not all software has it.
Don’t overlook compliance tracking, either. Software should facilitate compliance with global regulations like GDPR, HIPAA and others specific to the jurisdictions where you operate. This includes monitoring and logging access and changes to data to provide a transparent and auditable trail.
6. Reporting and visualization tools
Clear and actionable insights into your entity are key to effective decision-making. Without powerful reporting and data visualization, it can be difficult for boards to gather the information they need to act strategically — especially the more entities they manage.
Choose software that can generate comprehensive reports, offering a detailed view of the entity’s ownership structure, subsidiaries and interdependencies. Diligent Entities, for example, include charts and graphs that simplify the complexities of your organizational framework.
Compliance also hinges on effective and real-time reporting. Proactive insight into your compliance status empowers you to identify areas that require attention and take action before you face any penalties.
7. Cost savings
Entity management software is an investment. However, the right software is an investment in both short-term productivity and long-term value; the more efficient your teams are, the less entity management costs and the greater your return on investment (ROI) will be.
Take Diligent Entities. Users reported reducing the amount of legal entity work outsourced by 90%, which translates directly into financial savings. Think lower operational expenses, less time-consuming tasks and reduced penalties and fines due to noncompliance.
These far-reaching savings in operational and labor costs ultimately lead to a high return; Diligent Entities users reported a 318% ROI. Choose entity management software based on its ability to drive financial performance beyond the initial investment.
8. Support and training
Transitioning to entity management software isn’t always easy. While more boards see the value of digitizing entity management, switching from emails and printed documents to an encrypted, cloud-based platform can still feel overwhelming.
The entity management software you purchase should provide comprehensive support to guide your adoption and help you fully maximize its benefits. The infrastructure of Diligent Entities' includes phone and email support, a dedicated account manager, and extensive training resources designed to help users navigate the platform confidently.
9. Proven track record
Organizations can’t afford to take chances with entity management. As a result, it’s critical to select software with proven success in the level of entity management you need. A software that has worked with many users (Diligent Entities has over 1 million users globally) will have real-world examples of the efficacy of its solutions.
The best entity management software has also successfully supported entities similar to your current size and scope and the scale you envision for your entity’s future. If your strategic plan includes reaching the Fortune 500, FTSE 100 or ASX 200, look for a tool like Diligent Entities with an extensive track record with entities of that caliber.
10. Capabilities for your organization’s size and complexity
Small businesses and large multinational corporations have diverse needs, yet the success of each depends on effective entity management. At the same time, many small businesses will grow into larger corporations and need solutions that evolve with them.
Consider entity management solutions that simplify entity management yet are flexible enough to scale as you do. Managing entity data and compliance across jurisdictions is inherently complex, but tools like Diligent Entities are built to simplify complex entity structures.
Think back to the global pharmaceutical corporation or global energy corporation above. While their global operations became more demanding, the complexity didn’t because of Diligent Entities' capabilities for managing many entities within a single platform.
Strengthen your entity now and for the future
Choosing entity management isn’t just about simplifying your present. It’s about securing your future. Sophisticated entity management software integrates with broader governance, risk and compliance (GRC) systems and supports the governance and compliance frameworks entity growth requires.
The best entity management software can also be more than a tool. With Diligent Entities, part of the Diligent One Platform, you’re unlocking software solutions, extensive features tailored to your entity, and a broader platform designed to enhance your organization’s entire GRC program. How do you know if Entities is the right tool for you?
Download the entity management buyers guide today. Learn how a comprehensive entity management platform can transform your approach to governance and compliance — and how to evaluate software to find the best tool for your entity.
