The word statutory means “of or related to statutes”- rules and regulations. Compliance means adherence. Thus, Statutory Compliance means adhering to rules and regulations. Statutory Compliance in HR refers to the legal framework that an organization should adhere to in dealing with its employees.

What is Statutory Compliance?
Statutory compliance refers to the legal framework that organizations must adhere to in order to operate within the laws and regulations set by government authorities. It encompasses various laws related to labor, taxation, environmental protection, and corporate governance.
Definition of Accounting
Accounting is the systematic process of recording, measuring, and communicating financial information about an entity. It provides stakeholders with relevant data to make informed decisions.
Objectives of Accounting
- Record Transactions: Maintain a systematic record of all financial transactions.
- Provide Information: Offer insights into the financial position and performance of an organization.
- Facilitate Decision-Making: Assist management and stakeholders in making informed business decisions.
- Ensure Accountability: Hold individuals and organizations accountable for their financial dealings.
Advantages of Accounting
- Clarity: Provides a clear view of financial health and performance.
- Legal Compliance: Helps in adhering to statutory requirements and regulations.
- Planning: Aids in budgeting and financial planning.
- Performance Evaluation: Enables assessment of business efficiency and profitability.
Limitations of Accounting
- Historical Nature: Primarily focuses on past transactions, which may not predict future performance.
- Subjectivity: Accounting methods can be subjective, leading to potential bias in reporting.
- Complexity: May be difficult to understand for individuals without financial expertise.
- Cost: Maintaining an accounting system can be costly for small businesses.
In summary, statutory compliance is crucial for legal operations, while accounting plays a vital role in recording and interpreting financial information to support business objectives.