If a company faces no fines, litigation or adverse publicity, then it has a successful compliance system - identifying risks with noncompliance and notifying management in time to get involved. But with little visible value, compliance can appear less deserving of corporate resources than research and development.
According to a recent survey by CFO Research, “Managing Tax, Employment and Payroll Compliance in a Changing Environment,” meeting tax and payroll compliance requirements on a budget has grown to become a huge challenge for senior finance executives. “We have a significant risk of missing deadlines, overpaying, underpaying or overlooking errors due to fewer resources and poor IT infrastructure,” said the vice president of finance at a company in the pharmaceuticals field. He and 149 other U.S. finance executives with annual revenues of over $100 million responded to the survey saying sharing opinions on compliance efforts at a time when businesses are facing increasingly strict requirements.