Equity administration is typically punctuated by periods of high-volume activity, making it more tough to handle alongside your other day-to-day tasks. Whether you’re facing stock grant renewals, or experiencing a period of fast development, filings, and manual operations such as financial reporting under ASC 718 can get onerous.
There’s little confidence to be found in relying on manual methods for your equity plan management. Manually administering stock schemes, cap tables, and financial reports is time consuming and mistake prone. From lack of connectivity across systems to the lack of audit trails and security limits for your manual Excel-based reporting, you know you’re putting your organization’s regulatory compliance at risk.
As your firm has developed, you’ve realized that tracking and maintaining equity programs is getting progressively more complicated. Managing your equity plan on spreadsheets worked well enough in the beginning, but as you go through more financing rounds or maybe an IPO, your disclosure and compliance needs will get considerably more complex, and the penalties for doing it wrong exponentially more serious.