Legal requirements Flashcards
(17 cards)
Business name registration
In order to start a business you need to register a name unless you are using your name in the title, then it is optional. It has to be free from any misleading or rude titles.
Registering a domain
the address of the business on a website. The domain name should be named in a way that is easy to remember and isn’t a hassle for customers. Domains can be bought from the Australian Domain Administration for $10 to $100 a year.
Taxes businesses need to pay
Pay as you go
GST goods and services tax
Pay as you go tax
a system for making regular payments towards your expected annual income tax liability. it is Taken from the employee’s wage or salary directly
Goods and services tax
- A tax based on 10% of most goods and services in Australia
- Imposed on all consumers
Businesses must only register for GST if they earn more than $75000 each year
Work health and safety regulations
The work health and safety act 2011 ensures that workers are protected from any harm whilst in the workplace.
Objectives include:
• Protecting workers or other persons against harm to their health and safety whilst at work.
• Ensuring there is a fair and effective representation, consultation and issue resolution when it comes to work health and safety.
• Encouraging unions and employer organisations to promote improvements in work health and safety practices.
What are trade practices legislation?
Laws enforced by the government to ensure that businesses and consumers are protected from unfair trading practices
Code of practice
A written set of guidelines that are intended to help businesses achieve the standards set by the government.
Opening a bank account separate to personal account and why
It is highly recommended that all business owners have a separate bank account where all their business transactions occur and where any money made from the business goes into. There are several reasons for this
• It is easier to monitor the financial performance and position of the business if it has a separate account
• Calculating business expenses
What to look for in a bank
Bank fees: Ensuring the bank does not charge any hidden fees which may be hidden in the terms & agreement.
Interest rates: The interest rate will determine how much money the business will make on the amount they have in their bank account
Overdraft facility: allowing businesses to withdraw more money than they have in their account.
Record keeping strategies
- Book keeping software such as quick books
- Hiring a bookkeeper to accurately record finances
- Good filing system
- Keep them as simple as possible
Auditing
Testing and evaluating a business’s accounting processes and internal controls. It can be done internally where employees perform the audit or externally where another business does it. Auditing can provide useful feedback.
Cash flow management
- Keeping track of debts
Offering discounts to customers who pay cash or pay early
What to look for in suppliers
Price Quality Reliability Proximity CSR
Define policy
An established set of broad guidelines to be followed by all employees. An example is equal opportunity act 2010.
Define procedure
A series of actions that enable a policy to be put to practice it may include investigating allegations of bullying or helping those victim to bullying or harassment.
Define corporate social responsibility
Corporate social responsibility is a management concept whereby business owners integrate social and environmental concerns into their business.
this includes sustainability and environmental awareness or ethical issues such as fair pay
