Non-Compliance is Serious
Government authorities are coming down heavily on the companies and their directors for not complying with the statutory responsibilities. With digitalization of compliances, recent labour reforms and upcoming GST, the compliance enforcement will only get more stringent.
Some of the compliances so critical that non-compliance consequences are very serious for the organization’s reputation and its owners, directors and board members. Ignorance is not an excuse and hence the management should not ignore the compliance conformance. A simple slip up by the HR/Accounts executive can have a far reaching implication. It is also mentioned in the companies Act, 2013 that it is director’s responsibility to ensure that there be an automated solution implemented to track and monitor compliances.
How to Stay Compliant
Outsource your compliances
It is best to let the experts handle the compliances and not worry or rely on your staff’s ability and knowledge given the high risk exposure. A slip up can land organization into heaps of trouble including hefty fines (with heavy interest rate), damage to the organization reputation and imprisonment of the Owners/Directors.
Keep all Evidence handy
You may be compliant but when there is an inspection you must be able to show the evidence of compliance. In some cases evidence is must and without the evidence the compliance may not be deemed complete. Storing paperwork is risk prone, digitalization of the documents is the solution to avoid any surprises.
Monitor the Compliance Conformance
You may need to engage services of multiple partners to be fully compliant as most of the service partners specialize in certain fields only. There might a few compliances that you may still be doing in house. In order to understand whether an organization is fully compliant it is important to collate the compliance status from various sources.
Use an Automated Compliance Tool
Having a common automated system with interfaces for the service providers and the management will help an organization in staying compliant. Following are the benefits of such automation:
- Single system to record and update all compliances
- Easy to monitor the compliance status
- Common document repository simplifying the document retrieval in case of an inspection
- Compliance Calendar that helps you track and monitor the compliance
- Knowledge base that can help you understand how to be compliant
CompliCheck is a compliance tracking solution that can help you stay on top of your compliances. Our service partners can help you with your compliances or you can use our tool to do it yourself. CompliCheck pricing is kept low as we believe that you shouldn’t have to pay too much for tracking your compliances. For small businesses we have a free edition that will allow tracking of all critical compliances.