Regardless of your company size, virtually ALL companies have unclaimed property liabilities.
The size of your company is indicative of how the process is managed internally. Smaller organizations have fewer property records to deal with and are less complex. Larger organizations are typically working with more types of properties and in larger volumes. Their organizational structure tends to make the process overall, more complex.
Human Intervention: Many small companies have one person managing the entire process and are able to stay on top of their unclaimed property. Larger organizations have more property records, they work with multiple departments and multiple source systems, and their data is likely transferred multiple times. It’s a much more labor-intensive, error-prone process. Additionally, larger organizations often have more turn-over and are less informed about the overall process and statutes that govern each state and jurisdiction.
Due Diligence: Despite the size of the company, Due Diligence practices are often mismanaged and companies find it less of a priority to follow each state’s compliance guidelines.
Reporting: Your typical smaller company generally has minimal exposure in various states. However, larger companies experience a whole different set of complexities. For instance, preventing duplicate property records, reporting for multiple entities, to consolidate or not and, most importantly, staying in compliance with each state’s dormancy guidelines.
Myth Debunked. Size doesn’t matter. Companies of all sizes, shapes, and forms are still subject to the same unclaimed property laws as everyone else. You must still identify your potential unclaimed property liabilities, understand the dormancy periods for each property type, and report accurately.