Digitizing Compliance: Things That Businesses In India Must Know!
Keeping up with statutory and regulatory compliance is not a choice. Non-compliance to relevant requirements, laws and Acts can invite serious trouble, which extends beyond basic financial impact. As per Companies Act, 2013, managers and board of directors can be held responsible for non-compliance related aspects, and the legal consequences can be severe, often leading to imprisonment and more. To add to that, getting compliance updates in India is not easy either. Laws and relevant rules change frequently, often many times in the same day, and businesses have no choice but to track these updates manually.
The good news is compliance can be automated. Yes, there are software solutions and apps that can streamline the process of compliance completely, allowing companies to focus on what needs more attention – core operations.
How does it work?
Compliance management software systems bring the power of compliance database and match the same with advanced technologies. From cloud-based systems to mobile apps, use of analytics and beyond, compliance software systems ensure that companies don’t have to manually track everything, and more importantly, the reliance on paperwork will be reduced drastically. Of course, no two software solutions meant for compliance works in the same way, so the features have to be considered, and it must be seen how flexible a system is, so that the needs of a particular company and its compliance requirements are adhered to.
The benefits at a glance
Automating & digitizing compliance has many benefits. First and foremost, companies can expect to reduce manual work, which can be cumbersome. In fact, tracking changes in compliance norms is a cumbersome job, and most small and medium scale companies don’t have the resources to have an additional in-house team for that. Secondly, it is possible to mitigate legal risks and complications like penalties and fines by as much as 90%. Depending on the compliance management software selected, businesses can always choose to control the effort put in compliance, because all documents and papers will be kept safe online and can be accessed when required. Also, compliance software can send updates and alerts for any change in requirements and laws, and additionally, it is also possible to access information on the go with a mobile app.
There is no better way to handle compliance but to automate what’s feasible. In a country like India that’s slowly adopting digitization in a big way, this is an important aspect.