In the complex economic and regulatory environment of today, managing statutory compliance is no easy feat. With the ever-changing standards of accounting, new developments in laws, rapid globalization and rising demand of revenue authorities for better transparency and cooperation have substantially increased the burden on in-house accounting and legal departments.
They are expected to give greater and better reporting and compliance in a short time period. With the increasing risks and responsibilities, it has become integral for multinational corporations to employ entity management service providers in order to avoid reputational and financial damage. Legal departments are under a lot of pressure to keep pace with the rising complex administrative maintenance and high expectation of accurate corporate data transmission from accounting and ERP systems.
At the same time, another factor to further complicate things is a shortage of experienced, skilled and qualified compliance professionals. Shared service centres are also not set up for in-country compliance. Given all of these complex challenges, it is no surprise that both accounting and legal teams are guilty of spending a disproportionate amount of time on compliance activities and entity management rather than being focused on other important activities that need more attention like corporate finance, litigation, financial reporting, and closer integration with the rest of business operations and activities. Thus, numerous companies are now seeking more efficient, consistent and cost-effective entity management companies to meet their compliance needs.
With the passage of time, many multinational corporations are going for the entity management as a strategy to manage risks and keep the costs down in face of the rising regulatory pressures and compliance. Constant changing conditions of compliance and requirements and local business customs call for vigilant entity management practices.
The in-house departments of multinational corporations attempt to balance the demands of doing more with less, the option of co-sourcing or out-sourcing compliance and entity management happen to be a scalable, versatile and cost-effective means to move beyond the present hurdles and meeting the needs of in-country compliance and business as one unit in a much better and efficient manner.
Outsourcing entity management services and compliance activities prove to be quite advantageous for organization. Organizations can boost the efficiency of their processes, improve risk controls and quality. Furthermore, they can reap benefits from using latest innovation and technology systems without even having to fund the massive capital costing them.
When outsourcing entity governance activities, companies do not pay for headcount nor overhead but solely the services that they require. This tends to free-up a lot of worthy resources present in-house to deliver their energies and expertise on strategic initiatives for long-term plans and business support at the same time meeting the current obligations and requirements of compliance in a timely and accurate manner.
Entity management is the need of today to help you with legal implementation of corporate simplification as well as with you accounting and tax planning requirements. Getting services of these professionals ensure that all your problems find a sound solution.