Small Business Financial Compliance Analytics: Reducing Regulatory Burden While Maintaining Oversight Through Data-Driven Solutions

In the United States, small businesses spend disproportionately high costs to comply with taxes and regulations, while compliance and enforcement do not enjoy the expected improvement in oversight quality. Nonetheless, RegTech, audit data analytics, as well as robotic process automation (RPA) offer prospects to minimize such burdens while maintaining oversight integrity. This review summarizes U.S.-focused recent literature in the accounting and information systems and regulatory spheres. This narrative review investigates how data-driven compliance solutions can promote transparency, reduce administrative overheads, and enhance enforcement’s effectiveness. The review then uses a narrative systematic approach to investigate recent empirical and conceptual knowledge about Reg Tech, audit analytics, automation, and governance compatibility, supplemented with anecdotal information concerning U.S. compliance analytics readiness. As such, the evidence implies that compliance technologies enhance accuracy and reduce overheads, allowing for the introduction of risk-based oversight. However, success relies on the interoperability of data platforms, the capacity of institutions, and the accountability of regulators. Therefore, data-driven compliance analytics can enhance U.S. small business resilience and regulatory efficacy if combined with data standardization practices and oversight transparency.