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Compliance is An Ongoing Process – Know Your Business’s Risks

Compliance is an issue that businesses and organisations need to maintain and update their awareness of regularly.

When a business is at compliance risk, it means that there is a potential exposure of the business to legal penalties, financial forfeiture and material loss as a result of failing to abide by industry laws, regulations, internal policies or prescribed best practices.

Every business runs a risk of non-compliance if they fail to understand their responsibilities as a corporate entity or as the representative of their employees. If your business fails to comply with the relevant laws and requirements, your reputation, business opportunities and overall value my suffer.

Being aware of the different types of compliance risks that may impact your business is important. It may be impacted by the following:

  • Corrupt & illegal practices: Legal compliance ensures that the organisation, its agents and employees are abiding by the laws and regulations of the industry
      • Common legal compliance risks may involve illegal practices, such as fraud, theft, bribery, embezzlement, etc.
    • Privacy Breaches: The violation of privacy laws, handling sensitive data/information and being unprepared for taking appropriate action to safeguard this data.
    • Environmental Concerns Or Inaction: The damage that your business/organisation may be committing to the environment or adding to the overall pollution. Integrating sustainability into your business strategy may assist in mitigating this risk.
  • Process Risks: This is a failure to follow an established procedure for completing a task or a deviation from the standard process for your business.
      • For example, a company must have a documented procedure for accessing its network remotely. If an employee abuses the proper procedure for remote access, it is considered a process risk.
  • Workplace health & safety: companies are legally required to follow specific health & safety protocols. Failure to comply with these standards could open your business to liability concerns and legal ramifications (such as worker’s compensation claims).

If you’re someone who often finds it difficult to make large lump sum payments for goods or services, you may want to consider looking into “Buy Now Pay Later” services.

Buy now pay later essentially means that, rather than paying in a full lump sum payment for a product or services rendered, there may be an option to pay through instalments of a certain amount over a set period to make the sum of the full amount in total. This method should allow you to pay in full for the product or service without overly straining your finances – you pay back what you can, as agreed upon when you begin the buy now pay later service.

Some popular buy now pay later services include Afterpay, Zip Pay, Brightepay, and some credit card networks such as  Mastercard and Visa, can offer buy now pay later arrangements.

Though it can be a convenient, immediate solution, it may be challenging to juggle the necessary repayments with other financial commitments. It’s not always the most appropriate method for people, and you should bear in mind your situation and ability in paying back the amounts. 

Before you sign up, keep in mind: 

  • It becomes easier to overspend with buy now pay later services, so know your limits on what you can and can’t afford.
  • You will be charged fees and costs to use the service, which can add up to a princely sum in and of itself.
  • Keeping track of your payments can be tricky if you’ve signed up for multiple services.
  • It could affect your loan applications for a car or mortgage as lenders consider buy now pay later spending just as much as your credit score.
  • Late repayments can appear on your credit report, which affects your ability to borrow money in the future.
  • Layby can be a cheaper alternative to buy now pay later, with no account-keeping or late fees to consider

If you are someone who could make use of BNPL services, you may wish to:

  • Ensure that when using the BNPL service, you stick to a set limit on what you spend so that you can comfortably pay it back later. 
  • Aim only to have one BNPL account at a time to manage payments through, rather than confuse yourself with multiple payments across different providers.
  • Always budget for bills, loan payments and BNPL payments, and 
  • Rather than use your credit card for payments to your BNPL account, consider linking to your debit account instead.

If you would like assistance in planning your financial future, help in managing your budget or some friendly advice, see us for a chat about what we can do for you.

Testimonial

What our Client Say

John Briggs

Jane Noller has been my accountant for the last 15 plus years. I can testify to Jane’s professionalism and expeditious manner in dealing with the day to day issues that surrounds our business accounting.

John Briggs

Registered Building Certifier

David and Alison Parker

I have been consulting J L Noller and Co. (more specifically Jane) for six years and during this time I have found her to be professional, efficient and easy to discuss all accounting and taxation matters with. Her office team are all polite and friendly also.

David and Alison Parker

Business Owner

Carl Gillmore

I have used Jane & the team for the last 6 years for all of my business & personal accounting needs. They have always been professional, easy to talk to & available when we have needed assistance.

Carl Gillmore

Carl Gillmore Landscape

John Briggs

Jane Noller has been my accountant for the last 15 plus years. I can testify to Jane’s professionalism and expeditious manner in dealing with the day to day issues that surrounds our business accounting.

John Briggs

Registered Building Certifier