legal requirements and financial considerations Flashcards
legal requirements -
business name registration (asic)
ASIC is responsible for a national business name registration service. The owner must have an ABN reference number to apply. it is required by the law to register.
legal requirements -
registering a domain name
with the rapid growth of social media, it is important for businesses to develop an online presence. A domain name is the address of a businesses website on the internent. registering can allow customers to find them easier, and prevent businesses from registering a similar domain name that may confuse customers. it is done through australian domain administration website.
legal requirements -
work health and safety
a business owner is leggaly responsible for implementing health and safety practicies when establishing a business, under the work health and safety act.
this ensures the welfare of employees, elimates risk, and ensures members of the public are not in any risk
establishing bank accounts
it is highly reconmended that the transactions of a business are performed through a seperate bank account. reasons to do this are - it is easier to monitor the financial performance of a business, easier to calculate business expenses such as bank fees and it is less time consuming to prepare for tax return
finding the right bank account
consideration of these factors should be taken into account when choosing a bank account.
bank fees - hidden charges may apply and its customers responsibility to read terms and conditions.
interest rates - dtermines how much money the business makes on the money they have in the account
overdraft facility - some places allow businesses to withdraw more than they have.
financial control systems
the processes, methods and tools thst allow a business to accurately monitor and manage its finicial performance. these systems vary based on business size and nature.
inventory control and budgeting
record keeping strategies
helps the business monitor, manage and report its financial performance. businesses are required by law to keep records of their financial transactions for at least 5 years.
it is important to highlight areas for improvement to ensure a business runs smoothly
cash books - income statement
supply chain
having a reliable and high quality supplier will give a competitive advantage in the quality of your product.
consider these when choosing:
price - lower cost for suppliers increases chnaces of a competitive advantage.
proximity - being close can save time and money
CSR - ensure suppliers are transperant. this involves high levels of collaborations to ensure all goals of the business are met.
stregths and limitations - supply chain with high CSR
stregths - improves reputation customers are more likely to purchase from you investors are more likely to invest limitations - lots of time trying to find right supplier maintaining CSR is expensive increased cost finding CSR suppliers
policies
is a written set of broad guidlines to be followed by employees when dealing with important areas of decision making.
procedures
a series of actions that enables a policy to be put into practice.
technological issues
failing to take advantage of new tech could possibly leave the business behind competitors.
tech in marketing - taking advantage of increase in social media over the years, to advertise their own business.
customer databases - a bank of info on existing and potential customers, including their contact info, personal details, previous interactions, buying habits and preferences
legal requirement
any federal, state or local guidline or law put in place that a business has to follow.
global issues
failing to respond to global issues could result in being behind competitors.
overseas suppliers and resources - business owners may find it benificial to develop contacts with overseas suppliers. resources from overseas are usually less expensive, have lower taxes and allow the busines to access materials that are not available domestically
customers and overseas retailers - business may decide to develop contacts with overseas retailers, to become an exporter resulting in an potential increase in profit, reduced dependance on the local market and reduced indepenace
