Book-Entry vs Ledger System

In the past, your team may have been using a ledger system to track your shareholders. Most likely, your team is using a Microsoft Excel spreadsheet that lists all share purchases, sales, transfers, etc. This is called a “ledger system” and is effective for smaller companies. 

Since your team has grown and you are raising capital from retail investors, you will need to switch to a “book-entry system” which is what DealMaker Transfer Agent uses. A book-entry system does not give unique certificates for each transaction. Instead, DealMaker Transfer Agent keeps a record of each unique shareholder and we track their holdings as it changes. This is a more efficient approach to managing shareholders because it is more formalized and simplifies the conversion of data into a cap table.