4 tips for small businesses that want to remain compliant
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If you own a small business or are thinking about opening one, you need to have a good understanding of the importance of compliance. Remaining compliant can save your business a lot of money and headache in the long run, even if it takes a lot of hard work and investment.
Organizations spend $5.47 million on compliance, but that’s little when compared to an average of $14.82 million for non-compliance. There are numerous laws you need to be aware of if you want to ensure compliance at all times, so here are some tips that will help you stay compliant.
Hire an accountant
There are certain risks that come with owning and operating a small business, but not all of those risks are equal. While you can afford to take some risks, one thing you should never do is take on accounting practices without any financial knowledge, as this risk could cost you more than you realize.
Instead of taking this risk, save yourself the trouble and hassle and hire a certified public accountant. A CPA will help your small business in many ways and hiring a professional will have many benefits for you and your company in the long run.
Here are some of those benefits:
- You will have more free time. Getting a business off the ground and growing takes a lot of time and dedication. If you spend hours on end dealing with accounting and bookkeeping, you won’t have as much time as you need. So, save time and energy and let your CPA handle the time-consuming tasks.
- It will save you money. While it may seem counter-productive, spending money on an accountant can be a great way to save money. They will help you identify all the opportunities you might be missing that can save you money and eliminate any wasteful expenditures.
- It makes tax season less stressful. Taxes take a lot of time to prepare, not to mention that if you make even a single mistake, you could find yourself in legal trouble. Instead of wasting your time and keeping up with the constantly changing tax laws, do yourself a favor and let your CPA do the taxes.
Don’t ignore FISMA
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Federal Information Security Management Act, or FISMA for short, is a legislation that aims to protect government information, assets, and operations against any sort of threat. It requires all federal systems to meet a certain level of security requirements.
Businesses need to achieve FISMA compliance if they want to compete in the commercial and government sector. So, here are a few things you need to pay attention to:
- Technology. Choose and invest in tools that are used by other small businesses too. Try to stay away from shareware and freeware tools.
- Assessments. When it comes to security assessments, try to find vendors that specialize in the type of audits you need. Also, make sure they have a lot of positive references.
- Documentation. Make sure you have all the necessary security documentation such as reports, policies, plans, and procedures. You can get templates for this documentation on government websites.
Ensure accountability with time tracking software
A lot of businesses have started using time tracking software over the past few years, mostly to make sure their employees are doing the tasks they should be.
On average, only about 20% of the working day is spent on activities that matter, and this software is a great way to ensure everyone is focusing on important tasks. However, when it comes to compliance, time tracking software can help you in a very different way.
With this software, you will be able to record each component of any project that is being done in your company. This includes how much time employees spend on a given project. If there is ever a dispute over something like overtime pay or any other issue regarding how many hours someone worked, you will be glad you have time tracking software.
Even if your payroll is outsourced, you should still keep internal records for situations like these when you need to prove you’re compliant with your employer’s responsibilities.
Have different attorneys for different needs
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You might think that having one attorney that helps you with any legal issues is enough, but you should reconsider that.
It’s important to realize that not every attorney knows each legal category. So if you hire the wrong one, it’s just going to be a waste of money. For example, if you need to file a trademark, you should only work with an attorney that specializes in trademarks.
Just like you would hire different employees for specific needs, you should do the same with attorneys. And if your budget permits it, hire an entire team because there are a lot of benefits to having a legal team.
With the right legal team to help you every step of the way, you will be able to grow your business without any legal issues.
Final thoughts
Each year, millions of businesses are guilty of non-compliance, and most of those businesses didn’t even know they weren’t compliant. A law or a regulation can easily slip your mind, so it’s important to be vigilant, stay on top of new laws that come out and follow the tips you read about here.