What is Audit ?
Audit/ Tax Audit
Aug 12, 2022
WHY TO OUTSOURCE COMPLIANCE MANAGEMENT SERVICES TO A PROFESSIONAL
All businesses, requires to follow laws of the land. Non adherence to the law attracts severe consequences including financial penalties and may result in closure of business. Therefore, compliances become extremely important to run any business smoothly.
Now a days, compliances need more skill and knowledge; and experience gives an edge to it. Evolution of various laws like GST etc. grows the complexity of compliance functions that now need to comprehend and navigate the team involved in compliance functions. The team not only requires to understand the laws and rules in a better way but also needs to be updated regularly due to evolution of new laws and rules therein.
It is deriving the need for the support from professionals through outsourcing of various compliance functions. Outsourcing not only helps in reducing the workload on accounts team but also provide them adequate support in avoiding any delays in complying these regulatory works. This in fact raised the demand of experts offering Compliance Management Services.
Here, we will understand the need to outsource Compliance Services, it’s advantages and suitability for various businesses, irrespective of their size. It will then help you to take a decision for your organisation.
1: Need to Outsource Compliance Services
Some of them are as follows:
* Complex Laws
Businessman is expert in doing his business and not to understand the complexities of Laws.
* Frequent Amendments
Due to the evolving nature of statutes and changing needs of the businesses, authorities address the challenges by amending the law. Now a days, it is very frequent such as in the case of Goods & Services Act, Income Tax Act, Labour Laws, etc. It becomes very cumbersome to keep oneself updated all the time.
There are huge penalty provisions for non-compliance or late compliances. There are different dates for different compliances in GST, Income Tax, ESIC, EPF, etc. For a businessman, it is very difficult to remember all the dates every time. Any non-compliance not only attract monetary penalties, but may also lead to cancellation of registrations.
* Strict Enforcement
Due to some mal-practices; Regulatory authorities are more vigilant and even using Artificial Intelligence software to enforce the laws more strictly.
2: Benefits of Outsourcing Compliance Services to a Professional
Businessman can outsource all sorts of compliance functions such as compliances related to GST and TDS/ TCS & Income Tax return filing, ROC/ MCA form filing, Accounting, reconciliations, etc. to the professionals to get following benefits:
* Time saving
Every businessman believes that Time is money. Moreover, they are experts in doing business and not in compliances. Time that a businessman saved from doing compliances can be utilised more effectively in growing their business to next level which in turn increase their profits.
* Professional Expertise
One must do, what he is best into. Professionals are experts of their field and understand the laws better than a businessman. So, these matters should be outsourced to professionals to use their professional acumen and expertise.
* Timely Compliances/ Savings from penalty and other repercussions
Once the professionals are managing the compliances, they have their whole team to do all the compliances in timely manner. They are not only experts of law but also keep themselves updated for any changes put in force by regulatory authorities. That helps the businessman getting compliances done in time and avoiding the risks of penalties and other related repercussions.
* Focus approach and accuracy
Professionals are focussed and experienced in providing services to various kinds and sizes of businesses. Due to their experience and robust knowledge, they have all the procedures in place to help all kinds of businesses. Also, they use various tools and software that are usually costly for a single businessman, but is affordable to the professionals due the number of clients they are handling. This not only enhance the accuracy but also make the things cost effective for the businessman.
* Scalability options
Outsourcing of accounting and related compliance management services is the need of hour for every businessman. It not only frees them for all sorts of hassles but also helps them to scale their business operations to next level. When the businessman is free from accounting and compliances, he can utilise his energy in scaling the business operations, that is his expertise.
In this situation, professionals and businessman are doing exactly the same thing that they are experts of.
3: Does the size of business matters?
Size does matters.
However, due to the diverse experience; professionals have right solutions for different business organisations. Regular, part-time, onsite, offsite are some types of solutions that can be offered to different type of businesses as per their needs.
Specially for Start-ups¸need ofthese solutions aremore. As their business is at initial stage, they need more time and energy to scale their business. Also, cost of hiring the permanent staff might be little costly and also need space to accommodate team. However, outsourcing not only addresses these issues, but also provide professional’s support in managing all these areas without much of the involvement of the entrepreneur.
Whether you are a one-man army in your organisation or a team of hundreds; laws and rules of the game are unchanged. For every business, accounts need to be maintained and compliances needs to be done and that too on time. Time is changing and changing is the ways to do business. Without be in sync with changing trends, one is more prone to be out of the competition. Everyone of us needs to walk with the current so that we need to put less efforts to move ahead. It’s the time of Smart working rather than hard working. Successful entrepreneurs don’t do different things, they do things differently.
So, to reap the best fruits of your business, you must have the best team of professionals that can take care of all your accounting and compliance management needs and free you to grow your business and achieve your success.