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.

Unclaimed Property Mistake #2 - Failing to Preemptively Identify Outstanding Liabilities

The second most common pitfall companies make is failing to preemptively identify outstanding liabilities, which can be extremely damaging to the company’s bottom line. The primary threat presented by past-due obligations is that of a state (or increasingly more often multi-state) audit.

It is frequently the most well intentioned companies that unwittingly overlook or misinterpret their obligations. The complex and constantly changing laws of unclaimed property can subject a company to non- compliance while faced with potential fines, penalties and reputational risk. Undergo a rigorous self- audit or third-party evaluation to make sure that historical practices and reporting are sound.

Additional Unclaimed Property Mistakes

The unclaimed property specialists at Keane have identified an additional six mistakes that many companies make when addressing their unclaimed property compliance obligations. The repercussions of these mistakes are often compounded as many companies repeat the same mistakes year after year - ultimately creating more work and increasing the opportunity for serious consequences.

To receive a full analysis of the top eight mistakes and how to avoid them, we invite you to download this free whitepaper authored by Keane’s industry specialists, Debbie L. Zumoff, Chief Compliance Officer, and Valerie M. Jundt, Managing Director of Keane’s National Consulting & Advisory Services Group.

Click here to download the Full Report of the 8 Biggest Unclaimed Property Mistakes Companies Make