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4 reasons why you should outsource SEC compliance requirements

The idea of hiring a service provider or paying for compliance services may not be convincing initially. The cost implications that come with it are probably the biggest hurdle to overcome as for many firms, especially when starting, there is pressure to avoid unnecessary costs.

Most often, the concept of compliance is viewed as just another money guzzler, an extra expense. However, it is just the opposite of that. 

Unfortunately, compliance is often viewed as an extra expense, which is the opposite of how someone should treat it. Compliance needs to be placed on the same pedestal as other operational aspects of running a business. 

Fortunately, there are some compelling reasons why even the smallest firms would benefit financially from hiring a compliance service provider. 

  1. Strong in-house expertise 

With 17+ years of compliance experience, outsourced providers like us at DataTracks have probably seen it all – from the rarest problem to the most common; everything has come across our desk. 

That experience counts. When firms come across a compliance issue, however skilled your finance team or preparer may be, there are nuances of solving the problem that only professionals in the field may know. 

With a breadth of over 19,900 clients that our experts at DataTracks have worked with, consultants see a wide variety of issues in an incredible variety of situations.

Your firm can only stand to benefit from such experience, but that experience comes with another perk as well – outsourced compliance service providers like us at DataTracks, have ongoing relationships with regulators.

  1. Hassle-free XBRL tagging 

With an outsourced service provider like DataTracks, you can be sure that they would do the heavy lifting when it comes to the intricacies of XBRL Tagging. From selecting and mapping XBRL tags to financial reporting facts, creating custom elements and extensions, building the extension taxonomy, and populating the instance documents, everything will be taken care.

All you will need to do is approve. At DataTracks, our experts use their financial acumen to ensure that tagged data flows through your financial reporting value chain from bottom to top, producing XBRL filings (Financials and Notes to Financials – with detailed tagging) in guaranteed compliance with current SEC and U.S. GAAP Taxonomy. Our niche focus of an integrated and automated XBRL conversion using our software DataTracks Rainbow, certified by XBRL US for Data Quality, allows us to give you precisely what you need and what you pay for, not an add-on service.

  1. Effortless last-minute edits

 Mistakes and overlooks that creep into reporting can harm a firm. Even when everyone is doing their best, a small mistake can mean large-scale problems resulting in an enforcement action. Small firms, especially, can ill afford to make a single mistake, as they have little latitude to absorb penalties or the resulting loss of business that invariably accompanies regulatory action. 

In such instances, what helps is to have an outsourced service provider who can quickly step up to find, edit and validate the reports before submission. If new information is to be added at the last minute, at DataTracks, we work round the clock to ensure that any changes whatsoever can be accommodated. 

  1. Quick Turn-Around-Time

Another significant benefit to working with an outside compliance service provider is speed. Because we have so much experience dealing with common and rare regulatory issues time and again, we have developed clear procedures to follow when a compliance issue comes up. If you want to do it within your firm, your team will likely get stretched too thin to keep up with the fast pace of regulatory changes.

Leaning on the experience of an outsourced team of experts can help an overwhelmed Chief Compliance Officer or preparer take care of their compliance needs without feeling perpetually pulled in 20 different directions.

Mitigate risk and leverage 16 years of XBRL expertise and EDGAR by partnering with DataTracks. Entrust your SEC filing requirements with us. Drop a line at enquiry@datatracks.com / contact our experts now