Are you still tracking your business’s capitalization tables on everyday spreadsheets? If so, it might be time for a serious software upgrade.
Why are Standard Spreadsheets Ineffective?
Many smaller and mid-size companies use standard spreadsheets to keep track of cap tables. The problem is that information can quickly overwhelm these spreadsheets – and the people tasked with keeping them organized. Given the amount of data that must be tracked, this can become a full-time job that costs the company a lot of money.
This overwhelm can open a company up to accounting errors. With things as important as valuation and equity distribution being tracked, errors can be very costly for any company and its shareholders.
Perhaps one of the biggest handicaps of handling capitalization tables on standard spreadsheets is the stagnant nature of these tables. It can be difficult to scale up your business when abstract calculations like the potential value of shares based on factors like equity value, volatility, and discounts are nearly impossible to project.
With all this in mind, it makes sense that so many growing companies today rely on dedicated cap table management software to handle their shareholder data. But is it right for your business?
Big Benefits of Great Cap Table Management
There are many reasons to put cap table management software to work for your company. Just a few of these include:
• Make monitoring every aspect of equity easier, including stocks, options, and more.
• Reduce costs and time needed for bookkeeping by creating reports ready for auditing anytime.
• Project specific scenarios to make valuation more accurate and keep shareholders informed.
• Make acquisitions or mergers simpler by easily integrating with other companies.
• Effortlessly weave every other aspect of your company’s financials into your tracking, including payroll, collections, employee benefits, etc.
All of this will make it easier to help employees and shareholders alike understand your company’s valuation to make informed decisions regarding buying and holding stock, options, and more.
Don’t leave your business’s financial health to chance. Invest in dedicated software and enjoy greater accuracy, streamlined operations, and major savings!
