Compliance means following the rules and regulations that apply to your business or organization. Compliance can cover different areas such as taxes, labor laws, environment, data privacy, anti-money laundering, etc. Compliance is important for your business’s legality, safety, and reputation.
But compliance is not easy to achieve or maintain. You may face many problems while dealing with compliance,especially when the rules and regulations change frequently or are complex.
Some of the problems that you may face while dealing with compliance are:
- Not having enough knowledge or resources
You need a lot of knowledge, skills, and experience to understand and follow the rules and regulations that apply to your business.
But you may not have enough people or money to handle compliance effectively.
- For example, a medium or large business in India has to deal with more than a hundred acts, licenses, and registrations.
- They also have to follow hundreds of compliances and filings in a year. These are not only for the state where the business is located.
- They also have to follow the rules of the central government and local government regulators.
Managing such a complicated web of compliance in India requires the right knowledge, technology, and processes.
But many businesses do not have dedicated people or tools for compliance tasks or use old or inefficient tools and methods. This can lead to mistakes, delays, penalties, or legal actions.
- Having separate functions and systems
Another problem that you may face while dealing with compliance is not having coordination and integration among different functions and systems.
- Compliance processes are often made in response to a specific event or requirement without thinking how they fit into the overall business strategy or operations.
- This results in separate functions that work alone and do not share information or work together.
Similarly, compliance systems are often not connected to each other or to the main business systems.
This makes it hard to access, share, or analyze data across multiple business lines, functions, or locations. It also creates more work and increases the risk of inconsistency or difference.
- Using manual processes and making human errors
Many businesses still use manual processes and human intervention to manage compliance.
For example, they use spreadsheets, shared files, and documents to track and report compliance activities.
But these tools were not made to keep up with the changing rules or the amount and complexity of data involved.
It can take a lot of time to manually update every spreadsheet in every location to accommodate a single rule change.
- Manual processes are not only time-consuming but also prone to human errors. Every piece of data that must be re-entered or copied and pasted opens the door to more mistakes or missing information.
- These errors can have serious consequences such as fines, lawsuits, or reputational damage.
- Not having complete or updated metrics and reports
Compliance metrics and reports are essential for measuring performance, finding gaps, and taking corrective actions.
But many businesses struggle with creating accurate, timely, and relevant metrics and reports for compliance. This is because they have to put together information from multiple different systems by hand into meaningful reports.
By the time a report is finally made, it is likely very out of date.
- Many businesses lack advanced analytics to calculate potential risk and prioritize efforts. They rely on past data or intuition rather than future or suggested insights.
- This limits their ability to anticipate or prevent compliance issues or optimize their compliance strategy.
- Not having visibility or transparency
The final problem that you may face while dealing with compliance is not having visibility or transparency into your compliance status or performance.
- Without an integrated view of compliance-related activities across the organization, it is nearly impossible to find gaps and differences in how compliance is tracked and managed.
This means that a damaging risk can easily go by unnoticed or unaddressed because the business could not measure the full impact until it was too late.
- Lack of visibility also affects accountability and trust among stakeholders such as regulators, customers, investors, employees, etc.
If a business cannot show its compliance performance or provide proof of its compliance actions, it may lose its credibility or face scrutiny from external parties.
How Meraqui can help you deal with compliances
Meraqui specializes in employee lifecycle management, job and requisition management, training and interview assessments.
Meraqui also offers hire to retire life cycle management of your workforce including but not limited to contract staffing, gig worker’s deployment, payroll and management compliance.
Meraqui can help you overcome the problems of compliance by providing:
- Knowledge and resources: Meraqui has a team of experts who have deep knowledge and experience in compliance and regulatory matters. Meraqui also has a network of partners who can provide specialized services such as legal, tax, accounting, etc.
- Coordination and integration: Meraqui enables seamless coordination and integration among different functions and systems through its cloud-based platform. Meraqui allows you to manage your workforce and compliance requirements from a single dashboard.
- Automation and accuracy: Meraqui uses karam.ai to make compliance processes easier and simpler. Meraqui removes manual work and human errors by automating data collection, validation, reporting, and filing.
- Metrics and analytics: Meraqui provides real-time, relevant, and actionable metrics and analytics for compliance. Meraqui helps you measure your compliance performance, find risks and opportunities, and take data-driven decisions.
- Visibility and transparency: Meraqui provides complete visibility and transparency into the compliance status and performance of your business. Meraqui helps you monitor your compliance activities, track your compliance progress, and show your compliance evidence.
Read : A guide on how to avoid payroll hassles in India
Conclusion
Compliance is a complex and challenging aspect of running a business or an organization. You may face many obstacles while dealing with compliance such as not having enough knowledge, having separate functions, using manual processes, not having complete metrics, and not having visibility.
But with the help of Meraqui, you can overcome these problems and achieve compliance excellence.
