Over the last few weeks, we have shared insight into the different elements of risk mitigation in business covering areas such as corporate governance, insurance and cybersecurity, employees, and  managing growth, customer service and setting targets. For the last part of our series, we’ll focus on your legal responsibilities in running a business — legal compliance, taxation, health and safety as well as banking.

Conform to Appropriate Legal Compliance

Operating a business comes with several legal obligations from registering your business name to following fair trading laws. Refer to legal requirements for small business.

Aside from government-mandated regulations, it is also important to consider your business contracts. Before signing any contracts, make sure to read and understand the terms. It should be up-to-date, airtight, and fair to all parties involved. If you think you’re exposed, speak to an expert right away. Breach of contract, or the failure to follow the contract, can have long lasting repercussions.

Lodge Your Taxes Accurately and On Time

Tax preparation and lodgement is a necessary business activity set against due dates. So what happens when you fail to lodge your taxes before the due date?

If you are unable to lodge accurate taxes on time, the Australian Taxation Office (ATO) may penalise you. To keep up with your tax requirements, it is better to hire a registered tax agent who understands your obligations to the ATO. You can also check out this guide prepared by ATO to get basic knowledge on lodging and paying your business taxes.

Follow the Work Health and Safety Protocols

Work health and safety (WHS) is regulation to manage health and safety risks in the workplace. It aims to promote the wellness of people who work in and with your business by implementing safety procedures and installing safety equipment in your workplace.

By following WHS protocols, you can reduce work-related injuries and the failure to do so may lead to injuries in the workplace as well as prosecution and fines.

Banking

Even if banks are third-party entities, you can still find a way to manage risks when entrusting your business’ money to them. A good way to do this is by choosing a reliable bank protected by the Australian Government Guarantee Scheme. This scheme protects deposits by up to $250,000 per individual or institution. Meanwhile, if your deposit exceeds $1 million, you may be eligible for the large deposits and wholesale funding feature.

It is important to note that The Australian Prudential Regulation Authority (APRA) is an independent authority that supervises institutions across banking, insurance and superannuation and promotes financial system stability in Australia.

In Conclusion

Risk mitigation requires your active participation, whether it’s regarding legal compliance, taxation, work health and safety, or banking. Even if things are going well, you still must set aside time to review each area to pinpoint potential risks.

Also, if you missed our earlier instalments in this series, click on the below links for details.

Let Us Help

If your business has a turnover of over $1 million, ABJ Solutions is offering a complimentary one-hour meeting to help answer questions and model critical decisions with you. Get in touch with us today so that we can help guide you through these challenging times.

Interested to read more content to improve the way you manage your business? Click here to visit ABJ Solutions’ blogs.