Running a Company
Starting a company might seem complicated, but when it is compared with the actual running of the business, it is a piece of cake. Running a company is a very complex process that requires you to be familiar with many concepts. With many rules and regulations to comply with, it is essential to know the rules and play by it. Here are certain things you must know to run a company successfully
Employment: Your company will definitely need employers to function efficiently. There are legislative rules guiding the employment of people and companies must comply by such regulations. These rules include conditions of employment, visa status (for a foreigner), and many others. The employment conditions are especially important as it covers safety and health regulations, superannuation payment, standards of employment, worker’s compensation, etc.
Taxes: It is crucial to understand the rules and regulations guiding taxes. The Australian Tax Office handles the collection of most taxes paid by businesses. A company will usually pay company tax, Good and Services Tax, Capital Gains Tax, Payroll Tax and others. Also, the personal income tax of employees is generally paid through the company. For you to successfully run a company, you must understand all these taxes and the applicable rates. There is a need for constant review of your finances to see the taxes that apply to you because noncompliance usually carries a severe penalty.
Intellectual Property Rules: You must be aware of the rules on patent, copyright, trademarks, and other intellectual property issues. Intellectual property is important for companies no matter the industry it operates it. Ensuring that your company’s innovation does not infringe on others can make the difference between a profitable business and a failure.
Business Laws: There are laws guiding how a business should be conducted. Such laws include competition laws, consumer laws, privacy Laws, product liability regulations, etc. For anyone to run a company, these laws must be obeyed, and the rules followed. For instance, competition laws create the framework to ensure fair trade while consumer laws stipulate rules and regulations regarding product safety and protecting the consumer. All of these laws usually have national and state jurisdictions which means while some may apply nationally, others are restricted to the state.
Financial Reporting: Financial reporting standards are usually the same throughout the country. They cover Business Activity Statement which is submitted to the ATO, Annual financial report auditing that is submitted to ASIC, Periodic Disclosure to Australian Securities Exchange, as well as the Australian Accounting Standards. Running a company means making sure your business follows all these standards in its practices.
Considering all these obligations, you will understand that running a company is no simple thing. This is why most companies have more than one officeholder with each handling a specific aspect of the compliance. As an officeholder, certain obligations are binding on you and the most significant one that encapsulates every other is that you must act in the best interest of the company and be familiar with your obligations and responsibilities under the law.