The 3 Myths of Compliance, Debunked

by | Nov 25, 2015

Entrepreneur or employee, most of us bear some semblance of familiarity to compliance in one way or other. The regulations that define the legal boundaries of various industries may differ, yet there’s no denying that being compliant all too often has a negative stigma attached to it. But why?

Perhaps its time for a perception change. Here are 3 myths we have debunked, which would hopefully alter that point of view.

Myth 1: Compliance Audits are a Waste of Time

Albert Einstein’s definition of insanity is “doing the same thing over and over again and expecting different results.” Can you think of a questionable company policy or inefficient standard operating procedure that your colleagues have complained about for years?

We tend to think of audits strictly in terms of accounting. That is not true. Audits can also be undertaken in other business functions to improve the status quo. Let’s take operational processes for one. A task that previously took hours to complete could be reduced significantly following the elimination of redundant processes and the introduction of automation. Productivity here, is one benefit that can be derived from an audit.

Its human nature to resist change when we’re in our comfort zones, even on the managerial level. Yet sometimes a third party nudge is required to rationalize the reasons for change before we start to act. An audit does that.

Myth 2: Being Compliant is Extra Cost to the Business

Many would be familiar with the slew of automaker scandals that have hit the airwaves lately. Those involved found out the hard way how unethical decision-making could cost them billions in vehicle recalls and fines.

Taking this into perspective, if being compliant is extra cost to the business, then NOT being compliant cost A LOT MORE.

Myth 3: Customers Have Little Appreciation for Compliance

Monetary costs aside, when such incidents happen, companies tend to lose something greater: the trust of its customers and with it, brand loyalty.

Questions would inadvertently spring up in the minds of current vehicle owners. Those deeply concerned may even swap their vehicles for ones with a better reputation. That’s not all. Potential customers who initially had an intention to purchase from the affected automaker would likely jump ship as well.

Though not an irreversible situation, clawing back confidence from customers is going to be a long-drawn uphill battle that could take years. In Warren Buffett’s words, “It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.”

Being Compliant Isn’t as Hard as You Think

So is being compliant good for business? Can it ever be too troublesome? Be honest when considering these questions, for that’s how wise decisions are made.

Fortunately, there are tools available to help small businesses cope with the demands of being compliant. Whether its accounting, tax, manpower, inventory management, or even project execution, technology can go a long way to make this process seamless. Visit Deskera to learn more.

If you’re a Singapore SME business owner, here are some tips to get you started:

10 Compliance Hacks for SME Bosses

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