Essential Business Compliance: Key Aspects for Success

Business Name - A name or title under which a person or entity conducts a business.

Business Domain - A business's website address or URL on the internet that gives you an online identity or brand. It's a valuable part of your business identity and is an important marketing tool that can help customers find and identify with your business.

Trade Practices Legislation - The business owner must comply with trade practices legislation when establishing his or her business. The Competition & Consumer Act 2010 (Cwlth) is a federal law that specifies what business behavior is acceptable in relation to a wide range of issues.

Business Tax Compliance - A means by which governments finance their expenditure by imposing charges on citizens and corporate entities.

WorkSafe - A government agency that aims to reduce workplace injuries and support injured workers. Their roles include inspecting work sites, prosecuting employers for any breaches of OHS, and enforcing Victoria’s occupational health and safety laws. A business owner is legally responsible for implementing health and safety practices in the workplace when they establish a business.

Impacts of Following Compliance

• Helps provide a positive image as being a reputable business.
• Can provide less stress to the owners.
• But could cause financial strain when starting a business.

Impacts of Not Following Compliance

• Legal prosecution.
• Large fines or debts that need to be repaid.
• Deceptive tactics could increase cash flow or ability to compete.

Bank Account - An arrangement made with a bank whereby one may deposit and withdraw money and in some cases be paid interest. Factors to consider include:

Bank Fees

Different accounts charge different fees. Your bank may charge you:

• Monthly account keeping fees
• ATM fees
• Phone banking fees
• EFTPOS fees
• Internet banking fees
• Branch fees

Interest Rates

This will determine how much money the business will earn on the amount of money they have in the bank account, or how much they have to repay on any loans.

Overdraft Facility

Financial institutions allow a business to withdraw more money than they have available in their account. (Important feature for a business that may have cash flow problems)

Credit Cards

Credit cards can also be convenient for the owner. Different credit cards have different features, including the maximum amount that can be used, as well as the interest rate on unpaid balances.

Convenience and Support

Having a local branch with supportive staff and a variety of secure internet banking options available is a convenience that can ease the burden of running a business for its owner.

Record Keeping - The activity of organizing and storing all the documents relating to a business's activities. This can include:

• How much money your business makes and how much it spends.
• Who you hire or employ.
• Where your business operates from.
• How things get done in your business.

Benefits of Record Keeping

• Keep track of your business health, so you’re able to make sound business decisions.
• Manage your cash flow.
• Demonstrate your business’s financial position to lenders, suppliers, accountants and prospective buyers.
• Protect your business and minimize costs if you require records to respond to compliance or legal issues.
• Complete and lodge your tax and super records and returns.

Cash Sheet - Provides a summary of all the business’s cash receipts and cash payments; it is compiled from the receipt and payment source documents. Cash sheets keep a tight control on the cash, monitor the business’s cash-flow position — that is, the money coming into the business and the money leaving the business, and determine the cash balance.

Balance Sheet - Shows a business’s assets and liabilities (the financial position of a business) at a point in time. The main purpose of the balance sheet is to help a business owner monitor the debt and equity levels of the business. The owner can also use the balance sheet to evaluate the business’s overall financial position against that of previous periods and to assist them in decision-making.