Facing Challenges in Keeping up with Compliance ???
Facts
1. Each organization
has to comply
with various statutory
as well as internal compliance's while performing their business related activities.
- These are generally in the field of Taxation like income tax, Service Tax, Excise etc., Labor related like P.F., ESI, Factories Act etc., Legal matters, Company Law matters, and so on.
- Each area of operation has multiple Acts and Regulations to comply to like filing of returns, payments etc..
- These Acts and Regulations specify multiple tasks to be performed by the department and organization.
- If you total up all these compliance requirements under various acts, regulations, and policies for these fields that the company has to adhere, there shall be roughly 500+ compliances for each company.
- In addition, there are a huge number of internal compliances, either due to certain certifications, like ISO, CMM, etc. that an organization prefers. Or there are internal policies and management reporting system, which each department or the employees need to timely prepare and submi
2. Multiple people / department :
Since there are multiple Acts
and Regulations applicable on any organization, many departments and
teams work toward meeting and executing them in their true spirit.
3. Multiple companies and multi-location :
In
case the business spans across multiple companies, the total number
of compliances increases exponentially. The problem becomes more
complex if these companies operate across multiple geographical
locations, making the total number of compliances running into tens
of thousands.
Challenges
1.Possibility of skipping a compliance :
a) Skipping a compliance could be- Skipping a particular compliance altogether – not knowing if the regulation / compliance is applicable for the business and/or the geo-location
- Skipping a compliance to be submitted for a specific period / month
- Delay in adhering the compliance at a particular due date
- Focus is on Business operations
- High number of compliances spread across multi-locations and multi-people having their own inconsistent practices
2.The responsibility of ensuring the compliance software of various statutory laws lies solely with the management. It has to be done timely and meticulously. And as it exists under most of the laws, the top executives, the heads, and the directors are held responsible for any non-compliance or delay.
