A typical Indian private limited company employing more than 20 employees has to track and complete 112* compliances in a year ( See Annexure)
For the business owner or compliance officer, compliance management is very critical function as any delay or non-compliances results in interest, penalties, additional fees, disallowance of expenses and risk of prosecution.
Frequent changes in filing procedure, change in law, changes in due dates etc make it difficult for a business to manage all compliances internally. Hence several compliances are outsourced to CAs , labour law consultants etc. CAs are also coping with increased volume and frequency of compliance work and need to be chased to complete work in time
Ultimately any organization strives to achieve the following goals in respect of compliances:
- Each compliance is completed accurately and on time
- Do not wait for the last day to complete compliance
- Zero interest , late fee or penalty due to non-compliance or delayed compliance
Top 5 Challenges
- If there are multiple units / branches, then tracking applicable compliances for each such unit.
- Tracking on-time completion of each compliance being done in-house
- Ensuring accuracy of compliance
- Tracking and chasing completion of compliances outsourced to external firms
- Storing compliance completion proofs so that these can be retrieved in future for audit or in response to legal notices
Solution : Automating Compliance Management
Managing compliances manually with the help of spreadsheet , calendar etc can be very stressful and time consuming. Yet, it may not result in effective control.
Technology can play a very important role in bringing efficiency and control in this area. Today several cloud solutions like Proactly are available, which make the task of compliance management very easy. The illustrative list is given below.
- Real time dashboard giving details of upcoming, overdue tasks.
- Each team member has access to the cloud software to view pending compliances and complete them
- Compliance proofs can be uploaded against each compliance. Searching proof later is possible within minutes
- Each day team member gets reminder mails giving details of upcoming compliance
- Manager gets escalation email for work not done
- Data analytics to improve compliance levels
- Easier audits as complete library of all compliances with proofs is available at a glance
Hence automation is much more efficient way of managing compliances and SMBs should move away from spreadsheets and embrace automation to cope with the demands of regulatory compliances
*Actual number may vary.
|Income Tax||Tax Return||Yearly||1|
|Income Tax||TDS Return – 26Q||Quarterly||4|
|Income Tax||TDS Return – 24Q||Quarterly||4|
|Income Tax||TDS Deposit- Non Salaries||Monthly||12|
|Income Tax||TDS Deposit- Salaries||Monthly||12|
|Income Tax||Advance Tax||Yearly||4|
|MCA||Active 22A MCA 21||Yearly||1|
|MCA||Annual General Meeting||Yearly||1|