Ways for SMEs to deal with compliance challenges

Companies need to operate and comply with the govt. tax regulations/frameworks in which they operate. For e.g. companies, depending on their size and nature of business may need to pay sales tax, VAT, Profession Tax, Provident Fund, Income Tax, Service tax etc. The rules and clauses pertaining to each are very detailed and can get quite complex. 

Compliance impacts the business prospects and standing of any business deeply; this can be especially crucial in the SME and mid-sized segment, as you work towards carving out a more substantial market share. Reputation is everything, and one slip can undo years of hard work. But the nitty-gritties of ensuring compliance across your organization can demand a degree of knowledge and experience that is hard to procure in-house. 

Knowing the regulatory framework

It is one thing to invest time, effort and money in understanding the regulatory framework, but as these rules and regulations change, it is important to keep track of the changes and understand the impact these will have on your organization. While it is not something that is core to your business, it can consume a significant amount of time, just to get this right

Get in the experts

For the very reason, that we highlighted above, it is best to work with experts, who have a good understanding of this space. It is not just about knowing the regulatory framework, but also about being able to understand the impact of these regulations on different kinds of businesses and making strong recommendations based on a strong judgement

Putting a compliance calendar

Specialist providers know exactly what needs to be complied with and when. Work with them to create a compliance calendar. It is best that the service provider tracks this down to completion, as they are aware of the target dates, formats etc. 

Today, across the govt. landscape, there is increasing will to build a business environment conducive to both foreign and domestic investors and entrepreneurs. Corporate India will now have to sit up and take notice of the necessity to sustain compliance structures. They also need to ensure that their business is not only profit-generating but also legally compliant and efficient.

While some companies prefer to manage these activities in-house, they tend to be cumbersome and time-consuming. Also the implications of not doing it right are pretty serious. There could be hefty fines and penalties attached. Which is why it makes sense to focus on your core business while entrusting your compliance functions to a trusted partner. 

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