The Hidden Cost Of Being Non-Compliant In Business
‘If you think compliance is expensive, try non-compliance’.
In the complex IT environment, many times we hear the term ‘Compliance’ stressed upon. Is Compliance gaining too much spotlight or is it really important? Organisations pledge to maintain genuine compliance with important government mandates at all times. But only a handful of them crack the process of compliance with ease. It continues to be a constant challenge for the rest and they incline to go past the line of compliance.
At such times, the dangers are clouded and brought to light only when audits are performed. This non-compliance activity results in :
Fines and Penalties
Any act of non-compliance is subject to harsh fines and penalties as decided by the Government. Paying a cost for your negligence is what it is all about. You can never be exempted from being penalised under any circumstances. You can be fined for :
- Failure to maintain accurate payroll (Criminal)
- Failure to maintain accurate payroll records (Civil)
- Failure to maintain compensation payment(Civil)
- Any form of misrepresentation(Civil and Criminal)
- Failure to pay tax wholly or partly
- Failure to audit accounts or furnish a report of audits
- Failure to furnish an Annual Information Report
- And many more
A business shines in multiple dimensions only when its growth is fast paced. Being non-compliant would only worsen your chance of successful growth in the industry. Less growth directly impacts customer retention, debt increase, profitability and above all, the business itself. Always pay that extra attention to compliance for a successful growth in business and be worry free.
Inefficient Corporate Governance
Corporate Governance specifies the guidelines to direct and control a business efficiently. Transparency in corporate governance is essential for the growth, profitability and stability of any business. It ensures strict and efficient application of management practices along with legal compliance in the changing business scenario. A bad corporate governance symbolizes :
- Lower level of confidence among the shareholders of the company.
- Negative outlook of the company in the financial market.
- Lack of security of the interests of the society and the stakeholders.
- Poor economic progress of India in the world economies.
With Corporate Governance playing a vital role in your business, being non-compliant can have adverse effects on it. Non-compliance leads to Corporate Governance being at stake
Shrugging away compliance activities is short lived. The backlashes are indeed severe. Be ready to face :
- Less scope/opportunities for a new business
- Poor employee morale
- Decrease in customer retention
- Less goodwill
‘It takes less time to do things right than to explain why you did things wrong’. When Compliance is done with utmost perfection and accuracy, the compliance test is never going to be a nail-biting experience. Entrusting your compliance with trustworthy and reliable experts is another perspective.
At Relativity, we provide end to end solutions for a better Compliance Quotient. We offer a host of services in Payroll, Accounting, Taxation and Compliance domain with 100 % accuracy. We are fondly called as the ‘Compliance Experts’. No more should Compliance turn exhausting with us around !! 🙂 🙂