Every country lays down laws for everyone to follow. The same applies to businesses. To keep your business compliant is to make sure that all the laws, rules, and regulations pertaining to that industry are always followed. Most of these rules are focused on your employees.
As you grow your business, you will be taking on more people into your business to help you manage different activities. When you have many people, the admin needed to take care of all those aspects can get weaker. You will need to put health policies, safety regulations, ensure their welfare, and so on. The good news is that making sure your business is compliant is not all that hard when you follow some guidelines and tips. This can help you nail the business compliance needed with no hassle.
Hire A Registered Agent
Sometimes the best possible solution is to delegate and outsource some of the jobs that need not be personalized to your business. Such services are standard for everyone in the industry so you don’t have to worry about their performance. To free yourself up from the extra pressure you can hire an agent who is registered to ensure that your business stays compliant. Usually the registered agent fee ranges from $100 to $300
Before understanding how these people will help you do so, you need to know what is a registered agent? This agent receives legal and other official documents on the behalf of your company. These can include any documents like subpoenas, regulatory tax notices, and so on. They can help you align all the legal parts of the business. The agent is registered during the business formation and named in the paperwork. They then can receive any legal documents on your behalf and pass them over to the appropriate department. This ensures you don’t miss any deadlines.
Centralized Communication System
For any type of business, ensuring that a good communication system is set in place between the owners and their employees is essential. When a consistent and effective communication system is put in place, your employees can make sure that everything that can have a legal impact on your business goes through you. If an employee makes a mistake that can have adverse legal consequences on your business you will know about it before the damage takes place. You can then take steps to correct the error before it becomes a bigger matter that will be hard to manage.
One of the easiest ways to lay down a good communication channel is to incorporate technology. With so many advanced and innovative technological solutions available, you can have an incredibly easy and effective centralized communication system in your business. You can research a few software available that can be downloaded to establish and maintain communication within your business. This software or app can help to share content or important details with your staff in an easy way. It will save a lot of time otherwise spend manually communicating every important detail with your staff.
Apart from using an online platform for communication, you can also use software available for managing your finances. Various accounting and financial management software are available that can make it easier for you to handle these departments. Staying compliant also means keeping all your financial documents in place. Manually going through endless stacks of paper will make these tasks difficult as well as more prone to human error. Simultaneously, outsourcing these tasks and hiring a bookkeeper can also be a good alternative.
Ensuring All Documents Are In Place
The chances of your business going off track on compliance is higher when it is not organized. When the documents received or sent are not kept in an organized manner then the chances of making a compliance-related mistake are higher. Handling the accounts and filing your taxes can become frustrating and time-consuming. For this reason, a proper organizing system should be kept in place. All the documents and papers coming in and out of your business should be responsibly dealt with. Missing out on important documents could prove to be a very costly mistake for your business.
The importance of encrypting files with sensitive information cannot be emphasized enough. If you are a new business or an established one with a trusted set of employees, you still must take measurements to keep all your important files safe, secured and encrypted.
If you have a business website, then you must consider installing an SSL certificate on the web server. This SSL certification ensures that the server provides a secure connection with any other browser. To check if it is installed correctly you can see if the change from ‘HTTP to ‘HTTPS appears next to your website link. The ‘s’ here stands for secure.
Logging all your expenses is another important aspect to ensure that your business stays compliant. Small and large expenses should be tracked and logged. When you ensure this, you will notice a big difference in how your finance department stays free from any error. Postponing this aspect will bring a load of troubles when you sit down at the end of the financial year and have to go through the endless receipts that you have to give a record of. Make it a point to log every expense right away so you can maintain the records easily.
When you take the necessary precautions, then you will also reap the benefits of not running into any problems with compliance. When it comes to keeping up with compliance, your finances can be the weakest spot when not kept in order. It is hard to make sure that all the finances are always kept right as many technicalities have this to be taken into consideration. Consider outsourcing your compliance-related work, accounts, or bookkeeping services to perform professional audits if you don’t have all the skills to deal with them.
Another way to keep all your invoices in order when you are dealing with clients is to have an online invoicing system in order. It also adds a professional touch to the way you conduct business. One can easily and quickly download online invoicing software to keep track of all the finances that are coming in as well as those that are due. Reminders can be sent consistently to those clients who have a pending debit and are due payment or have skipped their payment.
Insurance Plan For Backup
Just like every valuable asset in your life needs insurance, you must not treat your business differently. Keep a comprehensive insurance policy in place for your business. By doing this your business can be protected from any future damages. It will be helpful in case a problem arises within the business, with your customers as well as those with the clients. You will be able to face and overcome any financial challenges that may abruptly appear. Your hard work will remain intact as the insurance will provide a monetary net for you to fall back on.
Consider the riskiest areas of your business. Assess those risks and have a plan ready in case something goes wrong relating to it. By staying ahead of such situations and identifying what potential risks you can run into, you will not be caught off-guard when they actually do occur. You will already have a method or plan ready and will be able to deal with it without halting the operations of your business.
Company Policy Manual
You may definitely be aware of how everything and every aspect of your company operates. However, you cannot assume that your employees too will know the same. You must ensure that all your employees are aware of all the rules and regulations that everyone within your business is expected to abide by. For new employees, you can give them training on how the basic operations work and what are the business policies. Getting a signed contract from them wherein they accept that they understand everything and agree to it will be feasible in the long run.
At the same time over time with work pressure, there is a chance that your employee may forget some of the rules and policies of your business. A written company policy manual with easy access to all the staff will help them to get a point of reference whenever they are in doubt.
Practice Fair and Transparent Operations
It is true that no business that wants to grow and succeed purposely or unknowingly breaks the laws. However, at times, if you miss out on the smallest of details, especially those relating to your finance department, you could end up facing legal charges against your company. By ensuring that all the practices in your business are based on fair and transparent terms, you can avoid running into such situations. For new business, hiring a lawyer who can help you understand all the legalities involved and making sure that everything is in order as per the law is advised for this very reason.
The compliance legal department of your country is definitely not waiting to pounce on you as soon as you make an error. These departments exist only to make sure that all the businesses within the country are working successfully but at the same time not breaking any laws. Treating them as a consultancy and asking them for advice should not be something that you should hesitate from.
What Can Compliance Do For Your Business?
Now that you know the steps you can take to ensure that your business is compliant, you should also know what benefits you can reap by doing so. For any business to be compliant they must protect the health, safety, and welfare of all those that work there. While simple compliances include basics like getting a license for your business and paying your taxes, there are more complex ones that you could face as your business grows and expands.
When your employee team grows you will have to shoulder more responsibilities in regards to them like hiring, firing, abstaining from discrimination at the workplace, ensuring a safe space for everyone to work in, and so on. The more compliant you are, the smoother the operations of your business. For example, if you run a restaurant then there are several health guidelines you need to follow. When you do stay compliant with all of that, you have a clean and sanitary place where people can eat and enjoy their meal without stressing about falling ill.
Compliance with the law in such cases can reduce the risk of heavy fines, penalties, lawsuits, and in the worst-case scenarios a complete shutdown of the business operations. By not adding sanitation signboards in a restaurant, you can get a warning from the legal department and maybe get a warning. However, when there are bigger errors you will face costly penalties. When you fail to comply with the laws, the other party can use this opportunity to strengthen their case to sue you. For example, a person who has slipped on a wet floor wherein no sign for the same was in place, will easily win the case.
By hiring an expert who can help you stay compliant you will eliminate such scenarios completely. Following these regulations will help your business more and not harm it. The employees will feel safe and that will eventually lead to higher productivity. You will avoid any workplace injuries or accidents from taking place and our profits will not dip.
Every customer wants to buy from a business that is legally compliant. You can use this opportunity to market yourself as one. Also, you will benefit from employee retention as your employees will feel that they are safe from any kind of harassment, danger and are working for a respectful law-abiding company.
Remember that you can only follow all the policies when you enforce them properly. This does not mean dealing with only a fraction of rules and regulations that are comfortable but with all of those that are necessary.