Taking the complexity out of compliance

Despite the very nature of the function requiring it to be accountable, finance professionals still find themselves grappling with legislation and regulation on a daily basis; in order to keep up to date with current and ever-changing requirements.

For those companies lucky enough to have a compliance officer, the burden is reduced, but for those at the smaller end of the scale, the “C” word can weigh heavy on the shoulders of their accounts teams.

Indeed our own research of 500 UK corporate finance departments found that for over a third of respondents (37 per cent), compliance slows everything down and almost a quarter (23 per cent) felt that the paperwork associated with it is too complex.

So why does compliance still cause a headache and catch many finance professionals off guard? How can it be effectively managed, finding its way to the top of the ‘to do’ list?

Horror or hindrance

For many finance teams and the wider business, rather than striking fear into their department, compliance is seen as something that simply gets in the way. From the Data Protection Act to FSA regulations around record keeping, it has no bearing on their ability to meet business objectives, achieve growth targets or help with cost reduction activities, but does hinder day-to-day operations.

But with regulations and compliance requirements constantly being tightened in response to developments in the economic landscape, accountability will become more crucial than ever moving forwards.

This is backed up by a recent survey by KPMG which found that more than half of corporate finance executives rank future regulatory mandates as their highest compliance concern.

But with regulations and compliance requirements constantly being tightened...accountability will become more crucial than ever moving forwards

Despite these concerns and the threat of fines, with so many other priorities and targets facing today’s finance departments, adhering to compliance requirements can come way down the list.

But unless it is tackled head on, the wrath of the regulator could impact heavily on departmental efforts and achievements in a single blow, with large fines imposed for non-compliance.

The key is to take the complexity out of compliance; making it an easy part of the job and as straightforward as possible to tick the boxes.

Whilst this might sound like a near impossible thing to achieve, it is important to have the right support in place to meet today’s requirements and be ready for those of tomorrow. It will prove invaluable and take the strain off finance professionals so they can remain focussed on achieving business targets and fostering growth.

Softening the blow

Rather than adding another complexity into the mix, technology can provide the answer and ammunition required to tackle compliance head-on. We have already seen the huge role played by technology in helping small businesses in particular to get to grips with their auto-enrolment obligations by helping them to set up pension schemes quickly and hassle free, to meet the June 2015 deadline.

In this scenario, cloud-based services really come into their own as, by their very nature, they are quick to set-up and can easily adapt to changing requirements and the regulatory environment.

Cloud services have come a long way over the past few years to ensure the safety and integrity of data and rather than adding to the complexity of compliance, they are designed to reduce risk and take the strain off an already stretched resource.

With new regulations and deadlines continually being set, the compliance landscape shows no signs of remaining the same. It is therefore imperative that organisations look to bring in technology that can adapt and grow with their business, to ensure that those tasked with ensuring compliance are armed with the best tools for the job.

Phill Robinson is chief executive of Iris Software.