Businesses shut down all the time for various reasons. But one reason that you don’t want for your company is non-compliance. Local governments can close a business if it doesn’t mean the local rules and regulations. At the very least, they will get fines and penalties. If you don’t want that to happen to your company, then here are some corporate compliance tips that should help.
Know Exactly What You Have to Comply With
The first thing you need to know for any business is what rules you have to comply with. Several compliance types can apply to a business. It all depends on what industry and what it works with. State and federal laws can also require some rules to be followed. A good example would be a restaurant needing to meet the various food safety laws that the government has. Besides that, there are general compliance rules that manage a business like sexual harassment laws and labor laws. Being fully compliant with all of them ensures that you won’t get sued or prosecuted by the government. If you want to be sure what laws you need to comply with, it is a good idea to consult your local government.
Get Expert Help
It is understandable that it can get confusing with all the laws that need to be followed. To make it easier for your business, you should consider hiring various professionals for help. For example, labor lawyers can ensure that you will meet any rules for employing workers. They will look over contracts to ensure that you are not violating anything. These experts can also help set things up for your business. For example, for environmental compliance, you need a stormwater management plan. An experienced contractor would be able to present you with a plan and also implement it properly.
Implement a Compliance Training Program
Compliance is not a one-time thing. As long as your business operates, you need to stay compliant with the various laws. To ensure this, you need to start a compliance training program. It will teach all of your incoming employees about the laws and regulations that are part of their job. For example, bank employees have to follow banking regulations and laws. They can easily violate them without knowing or by being careless. Awareness of the laws ensures that the company won’t get into trouble because an employee made a mistake.
Set Up a Good Communication System
A business must have a good communication system. For practical purposes, this is so that a company would have clear lines of communication to various departments for better collaboration. But it is also crucial for compliance. With a direct line to you, you would be immediately notified if an employee did something that has a legal consequence for the business. This early warning gives you the chance to correct the error before it becomes worse. For example, your accountant suddenly discovered that your company had not used the new overtime laws for pay calculations. Catching this early will allow you to correct the payroll and make things right. This would result in lower chances of criminal prosecution.
Organize Your Documentation
A business can easily make mistakes with its compliance if its documentation is disorganized. Several compliance mistakes involve mistaken filings of various types of paperwork. A missing form can easily result in a visit from the government. If you want to avoid this, ensure that your paperwork is as organized as possible. Having digital copies can help since that allows for easy searching and indexing. Another aspect of documentation is the logging of receipts. You want all the receipts issued by the company and issued to the company organized in a file. This ensures that you have clear records for better accounting.
Have a Regular Compliance Audit
You should also schedule a regular compliance audit once a year. This audit goes through all your processes and assets to see whether they meet all the regulations. A good audit will identify any places where you need improvement and give you some recommendations on how to correct any failings.
Compliance issues can be dangerous to a company. Not meeting the local rules and regulations can have your business facing the consequences when it is found out. It is better never to have to deal with the issue at all by being a law-abiding company. The tips above should ensure your business won’t have to deal with the law or the accompanying PR damage that it does to your company.