It can often feel as though you need to employ the services of a lighthouse in an effort to guide your business through the sea of regulations, standards, and legal requirements. Compliance is that thing that entrepreneurs love to hate, but the reality of it is, that non-compliance can greatly impact the success and durability of your business.
Compliance Explained
The general call to compliance is having to adhere to laws, regulations, and industry regulations. Regulations are put in place by the respective regulatory bodies as a way to protect stakeholders and ensure that businesses operate in a fair and transparent way.
Why Compliance Matters
Non-compliance almost always leads to legal and financial implications. Government bodies such as Inland Revenue, Financial Services Regulatory Commission, and Social Security have the authority to impose fines and penalties, and to a greater extent court proceedings. Unfortunately, ignorance is never an acceptable defense in these situations and entrepreneurs often find themselves tangled in a web of legal scuffles that drain their financial resources and tarnish their reputation. A damaged reputation for any business can impair customer relations and those of investors, causing effects that are both far-reaching and long-lasting.
An even bigger consequence of non-compliance is the effects on the organization’s operations. Regulatory interference tends to upset day-to-day business operations which often in worse-case scenarios, force the organization to cease operations until they are in compliance.
The Art of Complying
Every organization should strive to ensure that compliance is a part of the overall strategic plan to succeed. The following tips are a good starting point for ensuring a culture of compliance for your business:
1. Noting the due dates for the following will ensure that your organization maintains good rapport with the tax authorities:
a. Quarterly Unincorporated Business Tax
b. Monthly VAT remittances
c. Annual filing for Corporate Tax
d. Monthly Social Security contributions
2. Stay abreast with changes in financial regulations to ensure that your practices and policies align with the ever-changing financial and tax landscape.
3. Ensure that key personnel are educated on regulations that are relevant to their roles. That way, you can foster a culture of integrity.
4. Ensure that periodic internal audits are carried out to assess the organization’s level of compliance in order to quickly identify and rectify areas of non-compliance in a timely manner.
5. Take advantage of technology to implement systems that monitor compliance.
6. Engage a professional to provide guidance on complex regulatory matters to ensure best practices in financial compliance.
Financial non-compliance is not a simple matter of regulatory concern, it is a business risk that can lead to dire consequences. When an organization ensures that financial compliance is a priority, they are better positioned to safeguard its reputation and mitigate risks. Financial compliance is a strategy that is necessary for long-term success and flexibility. At Avanopti Accounting & Business Services, our ongoing employee training in the area of tax and financial compliance is a commitment to ensuring that our clients employ best practices in order to remain financially compliant. Book a discovery call with us today and find out how we can help your business navigate the murky waters of compliance.