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Reduce Risk, Increase Value: Why Equity Teams Need Automated Document Management

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insightsoftware is a global provider of reporting, analytics, and performance management solutions, empowering organizations to unlock business data and transform the way finance and data teams operate.

24 01 Blog Cem Newdocumentmanagement Website

One of the most challenging aspects of being an equity administrator is managing the vast range of documents related to stock option plans. These include grant agreements, vesting schedules, exercise forms, tax forms, and more. These documents are not only essential for compliance and accuracy but also for communication and transparency with option holders.

However, document management can be a daunting task, especially in these turbulent financial times. Market fluctuations, regulatory changes, communication demands, and precision requirements all add complexity and pressure to your stock option administrator’s (SOA) duties. To cope with these challenges, your SOAs need a tool that can help them streamline their document workflow, reduce errors, and improve efficiency.

Manual Processes Limit SOA Agility and Value

If your SOAs are still managing documents through manual processes, or using a tool without a document management feature, they are burning huge amounts of time manually updating and maintaining spreadsheets. This tedious and error-prone process wastes valuable time and resources that could be better used for strategic tasks. Without automated document management, you may find yourself falling victim to:

  • Increased Risk of Errors: Manual handling of documents and data increases the risk of errors. Administrators may inadvertently use outdated documents or make mistakes in tracking stock option-related information, potentially leading to compliance issues and financial discrepancies.
  • Reduced Transparency: Transparency is crucial in equity management. Without proper document management, it may be challenging to maintain a transparent and auditable record of all actions taken in the administration of stock options, which is essential for compliance and internal control.
  • Increased Security Risks: Document management features often include security measures to protect sensitive information. Without these features, there may be an increased risk of data breaches or unauthorized access to confidential equity-related documents.
  • Manual Compliance Tracking: Administrators may find it challenging to manually track and ensure compliance without automated document management features that support audit trails and version control.
  • Scalability Issues: Manual processes may become overwhelmed, impacting the ability to handle a larger number of equity transactions efficiently, especially as your company grows.

For the modern equity team, automated document management capabilities are a must. With increased pressure from leadership, stakeholders, and global regulatory bodies, you simply don’t have the time to waste on managing disjointed spreadsheets. By removing time spent on manual document management your SOAs can focus on:

  • Strategic Analysis: SOAs can invest time in deeper analysis of market trends, client needs, and competitive landscapes. This analysis can lead to better-informed strategic decisions and proactive planning.
  • Client Engagement and Relationship Building: With more time available, SOAs can actively engage with clients, providing personalized consultations, understanding their evolving needs, and suggesting tailored equity management strategies.
  • Innovation and Development: Allocating time to research and development allows SOAs to innovate new services, products, or features that could differentiate their equity management software in the market, boosting competitiveness.
  • Proactive Risk Management: With the luxury of time, SOAs can delve deeper into risk assessment and mitigation strategies, proactively identifying potential risks and implementing preemptive measures to safeguard investments.

Certent Equity Management for Every Stage of Business

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The Certent Equity Management Path to Success

Certent Equity Management from insightsoftware has released a new document management feature that streamlines the process of creating a library of prepared plan documents for your SOAs. This document library allows SOAs to upload, link, and manage documents such as stock option plan documents, seed capital issuances, and other grant-related documents across participants and non-participants. Certent Equity Management’s document management module also allows for customizable workflow settings and the collection of spousal and witness digital signatures, making the document process more secure and efficient.

  • Upload single or multiple documents including agreements and plan terms and conditions.
  • Distribute as standalone documents or document packages and track them easily and efficiently.
  • Manage the signing process (when required) through an integrated signature collection app. Create a signature hierarchy for documents requiring multiple signatures to ensure people sign in the correct order.

Certent Equity Management’s Document Management feature will save you time, reduce errors, and improve security for users who need to manage complex and sensitive documents for their equity compensation plans. It also enhances communication and transparency between the company and its shareholders, investors, and employees. Your SOAs will enjoy:

  • Confident Compliance and Audit Trail: Document management features enable your SOAs to keep a comprehensive audit trail which is essential for compliance with regulatory requirements, internal policies, and external audits.
  • Increased Workflow Efficiency: Efficient document management streamlines workflows by providing quick access to relevant documents, reducing the time spent on manual processes.
  • Reduced Risk of Error: Proper document management helps mitigate the risk of errors, omissions, and discrepancies in equity-related documents.
  • Employee Access and Self-Service: Document management features that support self-service empower employees to review their grants, exercise options, and stay informed about their equity holdings.
  • More Time for Reporting and Analysis: The right document management system supports reporting and analysis by providing tools to extract relevant data from documents, allowing your teams to generate insights, track trends, and make informed decisions related to stock option plans.

Download our white paper to see if Certent Equity Management is the right tool for your company.

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