Compliance as a Service: what it is and why it has become a trend
The business ecosystem is becoming more and more complex. Companies have shifted to operating in a global environment with a broad and fragmented legislative framework, due to extensive control in many cases. In this scenario, compliance has become of prime importance in organizations.
What do we mean when we talk about compliance?
Compliance or corporate compliance is the set of procedures and good practices that are applied to ensure that a company, and its members, comply with the regulatory framework. This includes monitoring the legislation affecting the business in each of the countries in which it operates, but also other aspects more related to company ethics and morals. For example, good governance, data confidentiality or financial transparency.
Compliance is nothing new. It came into being in the Anglo-Saxon world and linked to the financial sphere due to the enormous amount of regulations that these companies had to obey. However, nowadays it has spread to all production sectors due to globalization.
Why Compliance as a Service (CaaS)?
Regulatory compliance is currently closely related with technology. Businesses around the world are fully immersed in the digital transformation process, an evolution that entails the use of technological tools in the different operating levels of companies.
Compliance as a Service (CaaS) is a cloud-based option that lets organizations outsource and automate their regulatory compliance (fiscal, commercial, etc.). The aim is to lighten the workload for companies, minimize economic costs and, most of all, somehow simplify the demands for compliance.
How does Compliance as a Service work?
Companies opting for this modality delegate to an external provider, such as EDICOM, the mechanisms necessary to comply with the normative requirements that affect them and can be resolved by means of technology. However, instead of hiring a solution, what is engaged is a service, as the necessary software is in the cloud.
For the company, this means that there is no need to carry out installations, assume maintenance costs or take care of future upgrades. All these tasks have an impact on the external provider, who must also ensure the security of the information and deal with any possible incidents.
The case of e-Invoicing
B2G compliance, especially in the fiscal scope, is one of the aspects usually left in the hands of Compliance as a Service. In this way, connectivity and declaration of information to each country’s administrations in the terms dictated by the regulations are automated, a difficult task for companies to undertake internally.
One of the most outstanding examples of this is e-Invoicing. In recent years, this system has become mandatory in several countries worldwide. However, the requirements for correctly issuing this document vary from place to place: different standards, formats, submission deadlines, security mechanisms, etc.
In situations like this, Compliance as a Service allows us to adapt automatically to the requirements in each area, maintaining maximum safety and ensuring correct compliance. To achieve it, in the case of EDICOM, an International e-Invoicing Observatory is responsible for studying the evolution of this technology in more than 60 countries around the world. Based on the outcomes, the Global e-Invoicing compliance solution is updated, so that the user has no need to monitor any possible regulatory changes.