It is no secret that India has stirred huge interest among various domestic and overseas investors wanting to enter the Indian SME market. You surely understand the opportunities, and therefore the urgency to stay ahead in your business. However, one of the most challenging job is to stay updated on compliance and regulatory requirements.
How many entrepreneurs today can confidently say that they are 100% compliant? What are they doing to mitigate the risks associated with compliance?
The Government policies are evolving, new laws enacted, and amendments to the existing ones are done, etc. They are all not very simple to understand, at times ambiguous creating confusion and even more difficult to implement them. How prepared are you to handle all this?
There can be a tendency to either ignore it completely or enforce partially depending upon the entrepreneur’s discipline, enthusiasm and the will to follow through it to the last minute detail. And, whoa! Compliance becomes a huge risk!
Given the way SMEs operate their businesses, with unstructured processes, loose financial discipline and improper documentation leads to a high risk on missing compliance. Most times the accounting team aren’t able to provide the financial statements in time before the compliance deadlines so there will be no time to evaluate or discuss the same. In lot of cases even the financial statements may not reflect the correct financial performance of the business and in hush-hush the statements are filed to meet the deadlines just making sure that you keep dealing with notices from the departments and paying lawyers’ fees.
With more automation and rigor on compliance on regulatory side, there’s isn’t any choice with the today’s organization but become compliance ready. Deploying right financial process, having fiscal discipline and creating rugged documentation within the accounting team will ensure you are on the right side of law and save on severe compliance risks.
Are you compliant ready? Well, team 10CFO is just a call away in case you need help.