Rules and regulations are extremely important in the business world, especially in this era of technology. Rules and regulations ensure that your business follows the law. Additionally, compliance protects your business, partners, employees and customers.
Failure to comply with the laid out policies, laws and regulations can get your business in trouble. For instance, failure to obtain the right licenses can lead to fines from the regulating authority. Likewise, failing to put in place workplace safety and procedures could lead to preventable injuries that can, in turn, invite costly lawsuits. So how do you know your organization is drifting into non-compliance?
Poor cash flow
Cash flow is king as far as business operations are concerned. While some organizations overlook this, it can be a clear indicator of something amiss. Some of the signs of poor cash flow may include:
- Being unaware of your business’ cash deficit or cash flow status
- Late or irregular customer payments
- Difficulty paying suppliers
- A healthy turnover but low profits
What you can do about poor cash flow
You can take the following steps to mitigate your business’s cash flow problems:
- Set up your cash flow forecast and take steps to track it
- Review or establish terms and conditions for customer payments
- Review your operational costs to reduce losses
Failing to keep up with compliance obligations
Like your cash flow, failing to keep up with business obligations can lead to non-compliance issues. For instance, failing to pay your employees on time, overlooking compliance training or misclassifying employees can lead to costly non-compliance. Failing to keep your business records up to date or falling behind on filing your returns could also amount to non-compliance.
Business non-compliance is anything but fun. Find out how you can ensure that your business is compliant with the required policies and procedures.