ADP has conducted a survey in collaboration with ‘CFO Research’ that shows 89% of senior finance executives rank compliance as a priority, but 73% expect the complexity of new regulations to make it ever more resource-intensive to comply over the next two years. The research is timed to coincide with the unveiling of ADP SmartCompliance this quarter, a cloud-based unified platform of outsourced services that aims to help medium-sized firms better manage key tax, employment and payroll duties.
Eighty-one per cent of those polled by ADP felt that monitoring tax, employment and payment-related rule changes had already become more time-consuming over the past two years and 76% did not have access to real-time, consolidated compliance data.
Despite increasing complexity, nearly 60% of survey respondents said their compliance budget would remain stagnant or decrease in the next year. “According to our research, those who manage finances for large companies are challenged to keep up with the ever-changing landscape of regulatory and legislative rule changes,” said Josh Hyatt, associate director, of CFO Research Services, which carried out the questionnaire. “With budgets expected to stagnate for most, finance executives will likely need to look for ways to boost efficiency.”
The ADP SmartCompliance tool, which the vendor says is needed to meet the compliance needs highlighted by the survey, is intended to help firms meet their tax, employment and payroll reporting duties. ADP adds that the outsourced processing and reporting platform can potentially help save time and money by consolidating procedures that are disparate and manual. The system can also be integrated with a firm’s enterprise resource planning (ERP), financial or human resources system, claims the vendor.
“We heard from our clients that the flexibility to complement existing systems was essential,” said Doug Politi, president of ADP Added Value Services. “One of the strongest components of this new platform is its ability to work with virtually any ERP, and we’ve developed partnerships in the industry to make that happen.
“Our clients have also told us that business intelligence (BI) and data analytics are critical to streamlining day-to-day activities and achieving a truly strategic view, so our focus on these areas will drive future enhancements to ADP SmartCompliance.”