10 ways spreadsheets put your entity management at serious risk
Picture this: You’re the general counsel at a rapidly expanding company, responsible for overseeing a web of entities across various jurisdictions. The stakes are high, and the data is sensitive. But what if I told you that relying on spreadsheets to manage this complexity is not just outdated, but a dangerous gamble?
Spreadsheets may have been revolutionary when they first emerged, offering a digital alternative to manual record-keeping. Yet, in today’s tech-driven world, they’re quickly becoming relics of the past when it comes to tasks as critical as entity management. The advancements in automation, artificial intelligence, and data security have redefined what’s possible, pushing the boundaries far beyond what ‘traditional’ digital tools can handle.
In fact, clinging to spreadsheets in this new era isn't just inefficient — it’s a risky practice that could expose your business to significant vulnerabilities. From increased security risks to compliance nightmares, the dangers of using outdated methods are real. It’s time to explore why modern, purpose-built entity management software is not just an upgrade, but a necessity.
1. Inefficiency is slowing you down
Manual data entry, reconciliation, and fragmented systems are the hallmarks of traditional entity management. These processes are not only time-consuming but also prone to errors. This inefficiency can slow down decision-making, increase administrative overhead, and leave your team drowning in unnecessary tasks.
In contrast, cutting-edge entity management software like Diligent Entities automates repetitive tasks, centralizes data, and integrates seamlessly with other business tools used for governance, risk and compliance processes. Imagine the time saved when you can access accurate, up-to-date information in seconds instead of hours.
2. Your data security is in peril
Spreadsheets weren’t designed with security in mind, making them a risky choice for storing sensitive corporate information. With increasing cyber threats, the lack of robust security features in traditional digital tools leaves your business vulnerable to breaches and unauthorized access.
Modern software solutions, on the other hand, prioritize security with advanced encryption, stringent access controls, and compliance features. This means your sensitive data is protected, substantially reducing the risk of a potentially catastrophic cybersecurity incident. Moreover, relying on email to share spreadsheets not only floods inboxes but also exposes critical information to potential breaches — a risk that centralized, secure software can easily eliminate.
3. Compliance challenges are adding up
Keeping up with ever-changing regulatory requirements is challenging, especially when your data is scattered across various systems. Ensuring compliance becomes a Herculean task, increasing the risk of non-compliance and the associated penalties.
Purpose-built entity management software simplifies compliance by tracking regulatory changes, automating report generation, and ensuring all necessary records are up to date. This not only saves time but also ensures you’re always in line with the latest regulations. Unlike spreadsheets, which lack detailed audit trails, modern software makes it easy to document compliance efforts and generate reports swiftly, minimizing legal risks.
4. You’re missing out on the power of automation and artificial intelligence
Traditional digital methods offer little in the way of automation, leaving your team stuck with repetitive tasks that could easily be streamlined. Additionally, disparate systems often don’t integrate well, leading to data inconsistencies and workflow disruptions.
AI-powered entity management software overcomes these limitations by offering built-in automation and the latest AI optimisations for routine tasks, as well as seamless integration with other business systems. This creates a cohesive, efficient workflow that supports your entire organization. Say goodbye to the chaos of merging data from different sources in a spreadsheet, which often leads to inaccuracies and poor decision-making. Instead, enjoy the reliability of consistent, real-time data across your operations.
5. Errors are compromising your data integrity
Manual data entry is a breeding ground for errors, and when your data integrity is compromised, it can result in costly mistakes. Spreadsheets, with their lack of validation rules, are particularly prone to such errors. And when data is combined from these various sources, the risk of inconsistencies skyrockets.
Purpose-built software mitigates this by maintaining data integrity and providing a single source of truth, including error-checking features and validation rules that ensure data accuracy. This ultimately leads to more reliable data and better business outcomes.
6. Limited reporting capabilities are holding you back
Spreadsheets are great for simple data tasks but fall short when it comes to in-depth analysis and reporting. Limited reporting capabilities can hinder your ability to make data-driven decisions, putting your business at a disadvantage.
Advanced entity management software provides robust analytics and reporting tools that enable you to generate comprehensive reports and gain valuable insights. This empowers your team to make informed, strategic decisions.
7. Your current processes can’t scale with your business
As your business grows, so does the complexity of managing your entities. Spreadsheets quickly become cumbersome and inefficient, making it difficult to keep up with increasing data volume and complexity.
Modern software solutions are designed to scale with your business. Whether you’re managing a handful of entities or hundreds, these tools can accommodate your needs, ensuring smooth operations as you grow.
8. Higher costs are eating into your budget
The inefficiencies and manual labor associated with traditional methods aren’t just a time drain — they’re also a financial burden. Over time, these costs can add up, eating into your budget and resources. When your internal processes can’t keep up with the demands of entity management, the likelihood of outsourcing to outside counsel also increases. While this might seem like a quick fix, it’s an expensive and often inefficient way to manage your entities, as it adds another layer of cost and complexity to an already cumbersome process.
By automating processes and improving efficiency, software like Diligent Entities can significantly reduce administrative costs, freeing up resources for other critical areas of your business. The hidden costs of email overload, the time spent managing spreadsheet errors and consolidations, and the steep fees associated with outsourcing can be eliminated, making modern software not just a smarter choice, but a more economical one too.
9. Collaboration is more difficult than it should be
When your entity management information is siloed in separate systems or spreadsheets, collaboration across departments becomes challenging. Miscommunications and delays are almost inevitable, impacting overall efficiency.
The best software for entity management will centralize data and includes collaborative features that make teamwork and communication seamless. This not only improves productivity but also ensures that everyone is on the same page, working toward common goals.
10. You’re struggling to adapt to change
Business needs and regulatory landscapes are constantly evolving, and your entity management processes need to keep pace. Traditional methods often lack the flexibility to quickly adapt to these changes, putting your business at a disadvantage.
Diligent Entities is designed to be adaptable, with features that allow for quick updates and changes. This flexibility ensures that your business remains responsive and compliant, no matter what changes come your way.
There’s no doubt about it: It’s time to modernize your entity management
If your business is still relying on spreadsheets for entity management, it’s time to consider these clear and present dangers. From inefficiencies and security risks to compliance challenges and higher costs, the drawbacks are abundant. By contrast, entity management software offers the latest in AI-assisted automation features, enhanced security, advanced reporting, and scalability, enabling your business to operate more efficiently, effectively and collaboratively.
Don’t let outdated tools hold you back. Upgrade to purpose-built software and watch your legal team thrive as your business grows. Schedule a personalized demo of Diligent Entities.
