The following are commonly made mistakes by companies of all sizes, both public and private, across all industries in the handling of unclaimed property. With the frequency and broad scope of unclaimed property audits at an all-time high, it’s more important than ever for companies to ensure that they are avoiding these common pitfalls.
Unclaimed Property Mistake #1 – Not Understanding the Way Unclaimed Property Impacts Your Company.
The biggest mistake companies make is failing to understand how unclaimed property impacts their organization. If this is an issue your company has struggled with in the past, begin by assessing and analyzing the various areas in your organization that may contribute to a potential unclaimed property liability.
Within many organizations, 80% of your unclaimed property exposure value lies in only 20% of the outstanding obligations, but all areas of liability are important. Try to get to the root cause of why unclaimed property is being generated at your company and why individuals or businesses have failed to take action with regard to the sums you owe them....