5 Tips for Keeping Your Small Business Compliant

5 Tips for Keeping Your Small Business Compliant

It’s a no brainer that any business in Australia must stay in compliance with requirements imposed by both the state and national government. If the company is found to be non-compliant in any way by the authorities, then it would lose the license to operate. In the worst-case scenario regarding small business compliant, the business might be headed off to an expensive lawsuit. If your small business is incorporated or registered as an LLC, then compliant requirements could be stringent. Regardless, there are several small business compliant methods that business owners can deploy to ensure that a company is compliant at all times. Here is a list of some of these neat strategies:

1.     Outsource Compliance Management

Even the smallest start-up in Australia requires a plan for managing compliance. Depending on the sector of operation, the requirements can vary. For some businesses, such as those in the tech industry, compliance requirements may be few in comparison with a small business in the food sector. If your business is growing from a small operation to a medium-sized one, then keeping up with all the compliance requirements could become a burden. A growing business may not have the personnel or the resources to oversee compliance management. If this is the case, it’s highly recommended to hire a registered service agent, like The Performance Management Company, that can manage your business’s compliance requirements on your behalf. It’s more cost-effective than hiring new employees to oversee compliance as core business grows.

2.     Make a List of Things to Check

What exactly are the compliance requirements in your state? What does your company need to prove each year to show the government that it is indeed compliant? Make a list of these requirements and then tick them off every new financial year. The top-level employees at your company, like the managers, who must oversee compliance, must be aware of this checklist. It is a simple way to ensure that the company doesn’t stray and get into legal trouble. You can get assistance from the government business websites and company attorneys when making this checklist.

3.     Train Employees!

It’s paramount that businesses, regardless of the size, train employees in compliance requirements. Even a small mistake due to ignorance on behalf of an employee could lead to a world of legal trouble for the business. Therefore, the business must hire appropriate trainers and consultants to make sure the workforce is highly knowledgeable regarding compliance requirements.

4.     Gather Documented Evidence

Preserve all paper and electronic documents, such as invoices and contracts, as evidence. When you have solid evidence at hand, you can easily prove to the authorities that the company stays in compliance even if an issue shows up. A paper trail can help clear your company’s name. On the other hand, not having a proof can make a compliance case even turn a small one into a full-blown crisis. Therefore, make sure the employees are not losing important documents.

5.     Don’t Wait to Disclose a Conflict of Interest

If a potential conflict of interest comes up, this should be disclosed right away in writing and should become part of the company’s legal documents. It’s highly inadvisable to keep conflicts of interest hidden, as doing so can indicate malicious intent. If your business is registered as a corporation, partnership, or an LLC, then standards are higher.  Disclosures like this are even more important.

Staying in compliance is not difficult or costly if you follow the above advice. Make sure you also consult with company attorney specifically regarding compliance.

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