Why Finance Teams Need Entity Management Software

Keeping track of numerous business entities is an important responsibility that falls under the jurisdiction of finance teams. In addition to their core functions, these teams also look after the financial stability of all entities and their reporting as well as adhere to laws that keep changing with time. Whether it is about the management of mergers and acquisitions (M&As), supervision of annual financial statements, or making sure that every participant in the process follows the course of events in relation to business, finance teams are an indispensable part of an organization. But more and more new business structures are posing a lot of burdens over these teams.

It is here that the entity management software fits in, enabling the finance team without any bottlenecks as such to execute their functions within the required measures while maintaining availability. Here we will see how entity management software, in particular Traact, can assist the financial teams in carrying out their duties in a more efficient manner.

The Role of Finance Teams in Managing Multiple Entities

It is the finance team that is in charge of the well-being of every business unit within the organization. Be it a parent company controlling subsidiaries that operate in multiple countries or even a group with brands in many industries; the finance teams can perform the following roles:

• Preparation of consolidated accounts

• Consolidate results for the evaluation of subdivisions’ activities

• Adhering to laws concerning the organization’s business activities

• Conducting due diligence for mergers, acquisitions, and other corporate reorganizations

These circumstances can become especially complicated in case the company has a presence in several countries and there are certain changes and additions to the local law. Furthermore, deadlines and scope of work defined in this commitment demand effective data capture and reporting so that the decision-makers have the reports needed to make decisions.

Challenges Faced by Traditional Practices Adopted by Financial Teams

While finance teams have always managed complex operations, the traditional methods of handling multiple entities—using spreadsheets, email chains, and disjointed communication channels—are increasingly inefficient in today’s fast-paced business ecosystem. Here are some key challenges faced by finance teams in entity management:

Challenges in M&A Transactions

Mergers and acquisitions (M&A) require finance managers to consolidate cross-entity financials with compliance with new structures prescribed by regulations. Most of the time, such processes involve high manual work which is extremely error prone leading to wastage of time and risks of non-compliance. In the absence of such a platform, important data can be missed which brings the entire process to a standstill.

Dependency on Data for Assisting the Board with Decision Making

At executive levels, there is a need for informed decision management and in most cases, the financial decision is crucial within the board. Financial professionals work hard and are devoted to collecting data from other departments and entities. However, one can observe that traditional practices do not include data from various sources, so it may take longer than expected for data to be cleansed and structured properly. This inefficiency can lead the board to make wrong strategic decisions within the strategic planning time frame.

Lack of Collaboration

Finance teams often remain isolated especially when working across companies of a related region. A lack of integration between various functional areas means that important processes such as procurements, budgets, controls, and evaluations may be significantly hindered. Email and spreadsheets that are used in traditional work environments compound the problem because they do not support real-time communication which is a requirement in such complex work communities as financial teams.

The Role of FinTech in Easing Operations for Finance Teams

Today, the power of FinTech has made significant changes to the operations of the finance teams, where technology is now integrated to minimize paperwork errors. The key factor under modern financial technologies is that such teams can now perform essential duties with new tools, process information from different sources, and gain much more reliable information. Technological advancements such as the incorporation of artificial intelligence technology, cloud-computing platforms, and data analytics have enhanced the operations of the financial activities.

Entity management software itself is the continuation of such FinTech advancements and was created to directly meet the requirements of managing multiple business entities.

How Entity Management Software Helps Financial Teams

Entity management software is a comprehensive solution designed to simplify the management of multiple entities within an organization. Here’s how it helps financial teams tackle their most pressing challenges:

Centralized Data Management

Entity management software is a single source of all entity data including financial statements, taxes, compliance reports, and much more. This wipes out the problem of having to use spreadsheets and email chains, a situation that leads to a lot of confusion and makes room for human errors. The centralization of data also enables every individual in the teams to get information and data to work on with minimal or no errors thus increasing the accuracy of the reports.

Streamlined M&A Transactions

Entity management software ensures that integration during mergers and acquisitions takes place with ease since they are automated. They are also getting easy to upload and manage the acquired emergent financial data for various finance teams and legal affairs. Automating some receipts of data allows the finance teams to reduce their time spent on deciphering data.

Improved Collaboration

Using entity management solutions, the work of financial teams can be collaborative in real time even if the participants are geographically dispersed. It gives a team environment that they can use in preparing financial reports, compliance, and also data audits. This improved cooperation slashes the number of emails and occupies less time for the approval of important tasks, making tasks quicker and smoother.

Enhanced Compliance and Governance

Entity management software allows the finance teams to file compliance on both the local and the international level and notify regarding deadlines, changes in rules, and tasks. It makes the governance processes more manageable since all the financial data is well stored and can easily be retrieved by auditors. For instance, the software can generate a compliance report that minimizes instances of an organization being penalized for non-compliance.

Data-Driven Decision-Making

Entity management software allows the finance teams to have robust analytical tools, which convert numerical data into intelligence. They can create several financial reports, and track the performance of various organizational units as well as demonstrate the obtained results to the board. This means that decision makers have all the necessary information needed to make strategic decisions which in turn will help in improving financial planning and forecasting.

Insight into Traact: Enhancing Compliance and Governance

Out of all those solutions, one can consider Traact as one of the top choices for the efficient management of entities specifically targeting financial teams. Understanding the challenges that exist around compliance and entity management, Traact provides a set of features that help in compliance improvement, better collaboration, and easy completion of specific tasks. Here’s how Traact can benefit your finance team:

• Automated Compliance Tracking: The compliance section generates instant notifications for due dates that help your team avoid compliance failures.

• Centralized Data Storage: It means that all the data related to some entity is kept in one safe place that can be easily used and changed by the members of the finance team. Traact is SOC 2 Type II certified, which means your data is absolutely secure with us.

• Customizable Reporting: Traact’s reporting feature is an extension of the firm’s financial reporting where the financial teams can generate robust financial reports that can be tailored to the company’s requirements.

• Seamless Integration with Other Tools: Traact works with other tools you use to manage your company’s finances, thus ensuring efficient operations with little need for data rekeying.

It also enables the finance teams to achieve governance, some of which is the enhancement of transparency, accuracy, and compliance while the platform optimizes operations.

Interested in seeing how Traact can transform your finance team’s operations? Book a free demo today and discover how we can help you achieve compliance, streamline workflows, and drive better decision-making.