Compliances have costs involved – Clients need to understand

A professional who is directly or indirectly related to the financial world certainly has one question. Am I charging sufficient for the services I am offering? His thoughts over the question become more intense especially in Tier II and Tier III cities of India. With advent of Goods and Services Tax and frequent changes in the tax and corporate laws, it is high time that clients start understanding that compliance involves cost, it doesn’t come for free. Client is always wondering why I am paying so much for mere compliance job. And the same client would not even think twice before spending huge amounts on their personal needs.  It is in the interest of both the professional and the client to understand that higher the remuneration paid for compliance, easier would be the life for the client. Times have gone when businesses used to run like “Baniye ki dukaan” who believed in retaining everything close to their chest.

Most of the regulatory bodies have released the minimum prescribed fees for various jobs which a professional might undertake for his clients. But they are hardly followed. Client shows that sarcastic smile when shown these rate cards, as if they are just meant for mental satisfaction only. He is sceptical to pay the fees, not because he does not trust the professional but because he knows that once his neck is held by government official, he would have to shell out more. With the emergence of IT in most of the government departments including taxation, the possibilities of client spending more on corrupt practices will drastically reduce. In this e-assessment world, he should realise the understand the importance of compliances by paying a worthy amount to a professional who executes it. There needs to be a balance even at the end of the professional as well. He must ensure that if he deserves a good amount of fees, client also deserves a good quality service.

Every economy transforms and maybe 21^st century will witness the transforming Indian economy. Without the compliance of law and maintenance of proper records by the taxpayers, it would certainly be difficult for us to overhaul our  business activities. It would not be wrong to say, that the way government is forcing compliance (obviously for good reasons) the accounting and compliance solutions would start getting their worth. It’s the need of the hour that regulatory professional bodies and industries come together in working out fees-work balance.