Solutions for the biggest Benchmarking challenges
Benchmarking is filled with challenges and difficulties. From its complexity to the high costs it can brings to your doorstep. In this blog, we provide tips and tricks that will help you to not only solve the problems but also create a process to prevent future issues.
Most common challenges of Benchmarking
Transfer pricing benchmarking is essential for companies operating internationally, ensuring that their intercompany transactions meet regulatory standards, and are priced at arm’s length. Despite how important it is, you can’t escape from the challenges it brings with it. Let’s have a look at he most common challenges to see if any match yours.
Complexity: staying compliant isn’t easy. Factors like regional differences, regulatory changes and the general benchmarking knowledge can significantly slow down the process.
Resources: Depending on the size of your company, you might lack the budget, database or personnel to stay compliant.
Uniqueness: Your specific business case may require a personalized solution.
Audits: Being chosen for an audit can come out of nowhere. This makes the fear to have one a common occurrence. You might feel uncertain about what to do when one occurs.
Facing the challenges
Let’s have a look at what we can do about these challenges.
Stay updated on regulatory changes: The best advice for keep things manageable is to stay up-to-date. Compliance expectations change constantly! My recommendation would be to subscribe to newsletters, follow key figures on social media, or to work with providers who monitor these changes for you.
Keep it in-house: The biggest cost of benchmarking often comes from outsourcing. With the right tool and a bit of training, your company can perform benchmarking internally, reducing the need to hire specialists.
Expert help: if budget isn’t the problem but personnel is, consider expert help. A consultant can offer valuable second opinions, and combining a tool with expert help can keep costs low while giving extra assurance.
Customization: Your situation may be unique. In that case some customization will help you out. You can request a consultation from a specialist or configure a tool to match your needs.
Document thoroughly: There is no need to fear audits. By maintaining detailed documentation of each step and rationale, you’ll be ready to defend yourself in audits.
Automate the process: Although it might be biased, I think that if you face any of these challenges the simplest step you could take would be to use software. Automating these processes can relieve some of the workload and reduce costs compared to outsourcing.
Let’s summarize
Benchmarking is a challenging, expensive and time-consuming task, there is so much more you could do with your time and budget. That‘s why we would love to help you out. Whether by keeping you informed through our newsletter, answering your questions or with the Coperitas benchmarking solution.
Do you have any questions, concerns, or would you like to know if our solution fits your company? Be sure to contact us. Together we will find out what works best for you.
Click on these items down below to continue your journey:
– Webinars
– Newsletter
– Explore the Coperitas tool