AOS 1 - Legal requirements & Financial considerations Flashcards
Registering a business name
Enables a business to operate under a certain name
Stages for registering a business name
- Decide on a business name
- Prepare your ABN or apply for one
- Follow the registration steps listed on ASIC’s website
- Begin operating under the registered business name
Registering a website domain
Is a necessary step when a business establishes an online presence
Trade practices legislation
Promotes businesses to fairly interact with competitors and customers
Business tax compliance
Is a necessary requirement that all businesses must follow and are required to pay (tax)
Work safe insurance
Provides employers with insurance if one of their workers is injured at work
The importance of establishing a bank account
Enables a business to track how much cash they are receiving and paying and separate personal and business expenses
The importance of establishing a financial control system
Allows a business to monitor and manage its financial transactions and detect any errors or fraud
Importance of budgeting
- Avoids large financial losses
- Helps prevent fraud
- Avoids financial mismanagement
- Avoids low cash flow
Auditing
Assessing a business’s financial information to verify that it is true and accurate
Importance of auditing
- Avoids large financial losses
- Helps prevent fraud
- Avoids financial mismanagement
Record keeping strategies
Are methods used to keep track of the financial transactions of a business over a period of time
The importance of establishing record-keeping strategies
Enable a business to accurately keep track of and categorise all transactions
The importance of choosing appropriate suppliers
- Price
- Quality
- Reliability
- Location
- Socially responsible suppliers (CSR)
Socially responsible suppliers
- Use sustainable materials
- Seasonable fruit/veg
- Treatment of workers
