As your finance team grapples with today’s complex business world, unclaimed property compliance can become even more of a challenge.
Given the current circumstances, your team’s probably devoting most of its time to pressing tasks: processing invoices, cutting checks, appeasing employees’ and trading partners’ financial concerns. They may not have as much time to devote to due diligence tasks, like following up on payments and seeing what’s outstanding.
All the while, unclaimed property (UP) concerns slowly, quietly climb … until those fall reporting deadlines arrive. And suddenly, your finance team is scrambling to follow up on A/P payments, A/R credits, rebates, stocks and more.
Keep in mind now
Of course, you know that if your team prioritizes unclaimed property now, during the summer months, it won’t be hit with compliance problems when fall reporting deadlines roll around.
Here are a few quick tips from True Partners Consulting that Finance can use to keep unclaimed property top of mind, especially during these difficult times:
- Start with research. Since each state’s reporting requirements vary, have your top team members do a little research to see if anything’s changed since your last reporting cycle. Their research should include the types of files Finance must produce, the method of file transfer, any required attachments, negative reporting requirements, etc.
- Update those policies. As state laws and business procedures change, so must your policies. Your UP policies should spell out your company’s reporting requirements, summarize your current reporting process, list an “Escheat Coordinator,” point out all business areas where UP may be found and outline updated record retention rules.
- Kick-start with a meeting. Whether it’s on video call or in person, schedule a team meeting before fall begins. Review your updated polices, the 2020 compliance calendar and each department’s responsibilities. You can also get any newer employees acclimated with UP and answer specific questions.
- Keep the momentum. Next, it can help to hold brief meetings before each major process step approaches (e.g., a call one week before the due diligence mailing period begins to verify everyone’s ready). Have your finance team set up calendar reminders for these quick check-ins, so they aren’t forgotten in the long term.
Need more information?
Premier Learning Solutions is offering a workshop, Unclaimed Property Compliance: Best Practices for Post-Pandemic Escheatment.
Some of the topics it covers include:
- how to handle uncashed checks, credit balances and gift cards in the current climate
- legislative updates that impact your escheatment reporting obligations
- best practices for efficient escheatment reporting, and
- notification requirements and strategies for success for all parts of the escheatment process.
The speaker is Dr. Jim Castagnera, Esq., whose 36 years of experience in law includes a decade with a prestigious Philadelphia law firm, three years as a general counsel for an econometric forecasting firm, and 23 years as Rider University’s Associate Provost and Legal Counsel of Academic Affairs.
Click here for registration and more information.