Starting a business is an exciting adventure, but it can also be a minefield of rules and regulations that must be followed.
Regulations change regularly and it can be difficult to keep up, but it is crucial that new businesses take charge to ensure they are compliant across the board.
By following compliance measures early on, business owners can ensure their firm, property and employees are protected.
It will also save money and stress further down the line which could be caused by not ensuring compliance is followed from day one.
Areas of compliance to consider
Professional regulators set their own industry regulations which must be followed. Examples include the Financial Conduct Authority, the Law Society and the Environment Agency, depending on which industry the company operates in.
Financial regulations are a huge area that businesses must follow. From payroll and tax to anti-money laundering regulations, businesses must sure they are fully compliant across a swathe of rules.
If your business grows and you begin to employ staff, then employment law, regarding issues such as pay, contracts and health and safety, must be considered.
The bigger the business, the greater the number of regulations that are likely to be followed.
Tips for compliance
It may seem daunting to new businesses, but there is a range of actions you can take to ensure you fulfil all of your compliance requirements.
Creating internal controls such as organisational policies, update regular risk assessments and carry out regular audits, are steps that all businesses should undertake.
You should also review and update all legal documentation such as contracts, policies and procedures, on a regular basis to reflect changes in regulation and your own operations.
Make sure you have up to date documentation on employment law, business law, tax and health and safety law.
What happens if a business is non-compliant?
Poor business compliance can have serious consequences. If a company is found to be non-compliant, punishments can range from fines to imprisonment in the most serious cases.
It can also have serious reputational damage to your business. For example, businesses who fail to comply with minimum wage legislation can be publicly ‘named and shamed’ by HMRC.
Are you concerned about business compliance? For expert advice, contact our team today.