If a business dissolves, owners sell assets and pay off liabilities. The equity of an organization shows how much money a company’s owners would have from this sale. Managing equity is a complicated process if you have several employees and investors. For every new option grant and equity contract, your staff should manage the admin work.
To avoid concerns and organize cap takes, you can use equity management software by Astrella. The application will also track ownership and keep your records up-to-date. You can automate different processes to save time for your legal and finance teams.
Which Equity Management Tasks Can You Do With Software?
Grant share options – New equity grant distribution is the most important part of your equity management process. While issuing employee stock options, the most appropriate details are the grant date, the grant owners’ name, and the share options received. It is also essential to manage the strike price for converting options into shares. If you do these tasks manually, it takes much time. So, you can use equity management software to accomplish everything without an issue. Using the software, you may also create and import grants.
Manage cap tables – A cap table is like a balance sheet that has several elements. The process of tracking stocks, bonds, and equity grants is referred to as cap table management. Capitalization tables comprise details like shareholder information and purchase equity rights. With a cap table management application, you can increase accuracy and avoid manual effort.
Maintain compliance – During the equity plan setup, you could forget minor details that manage risk. If your company runs a tax-efficient stock option plan, there is a deadline for financial reporting. Besides, it is essential to make valuations of your company. A single error can cause risks to your business. Using an equity management application, you can avoid errors.
Communications with shareholders and investors – Most companies know the importance of keeping everyone connected. They should also ensure efficient shareholder and equity management. Equity software will help you improve investor relationships. The platform enables equity managers to interact with groups of stakeholders. It also facilitates mass communications and shares information within a few seconds.
Deal with documentation – Every business needs to make contracts. While managing equity, these contracts provide security and employee reassurance. However, for your in-house team, it is challenging to share several contracts.
If you have chosen a spreadsheet for equity, it will make things messy. Your employees cannot easily deal with the document management process.
So, you can invest in equity management software that lets you deal with contracts within seconds. It also accelerates processes for operations and finance. To simplify everything, the software also attaches documents to grants.
To conclude, the best equity management software gives you an overview of your latest equity status. Several businesses in the USA accomplish equity management tasks using software. So, let your equity administrators work efficiently using feature-rich software. The innovative application will also reduce errors and save time for your team.
