Compliance
In general, compliance means following a rule, such as a specification, policy, standard or law. It is necessary to lay ground rules and regulations and it is a good exercise for the growth of business. The importance of compliance can be explained by the following example.
E.g. consider a city with roads and vehicles to drive but no rules or traffic signs then what will happen?
Everything will be a mess, that’s exactly what happens to a company who doesn’t have rules and regulations.
Regulatory compliance defines the objectives that business associations seek to accomplish in their efforts to make sure that they are aware of and take steps to comply with relevant laws, policies, and regulations.
Understanding the reasons for the different rules, laws and regulations that administer your business will assist you in taking advantage of any benefits they offer while guaranteeing that you stay in compliance at all times.
Compliance is very important for both small and medium size companies because:
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Helps in decision making
Compliance helps to synchronize the data and helps to improve clarity. It also ensures the complete, accurate and timely documentation of the work activities and the expenditures.
As a result, it improves the decision making for the future as well as investing.
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Improves efficiency and productivity
As mentioned before, Compliance helps to synchronize data and helps in decision making.
Efficiency in a business can result increased profits. This can be achieved with compliance.
Furthermore, it is equally important for both small businesses and corporate firms.
Great working conditions, availability of office equipment and salaries on time increase the efficiency of the employees.
Moreover, when employees are happy to work it results in the increased productivity.
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Helps organizing within the company
When everyone is following the rules and regulations of the company properly, eventually everything becomes organized.
And when everyone knows their tasks, they are aware of DO’s and DON’Ts, it makes working easier. Thus, increases productivity.
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Reduces risks
A working environment where employees are likely to get injured or have health related issues is viewed as a compliance risk.
Such risks not only occur due to the inability to follow the laws and guidelines, but can also happen because of the management failure.
Therefore, Compliance is necessary to make sure that such things never happen and that the working environment is clean and safe.
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Helps preventing criminal charges
A business who does not obey the law might face criminal charges.
Moreover, there are a number of regulations that apply to different areas.
Some of these include the managing the employees, handling stock, advertisement of products and services, workplace safety etc.
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Helps in building a positive reputation
The public image can have a strong influence on the success of the business.
An organization faced with court cases or criminal charges might lead to the loss of trust from the public.
This can further affect the sales of the company’s products and/or services.
On the contrary, a positive image can add to the reputation of the business and in turn build up the trust of the customers.
This is because consumers are more likely to go with companies that have a trustworthy image and status.
Think Compliance? Think YPIK!
Our compliance team knows that compliance is the backbone of any business and that the importance of compliance is monumental.
Therefore, they work with great dedication to deliver the best results and that too within the deadline while keeping the culture of our client’s organization in mind.
This is the reason that we have many long-term clients with whom we have a great relation.