Branson Centre Session 6 - Part 1: Compliance is EXCITING! (...right?)
To view Session 1 click here
To view Session 2 click here
I thought I would fall asleep in the accounting session, but I didn't. I thought I would fall asleep in the session on business compliance... and I nearly did. Not because the Branson Centre Foundations course manual makes it seem boring. Unfortunately business, like life, is not always fun. There's some serious slog work involved, like having to deal with topics that could cure even the most extreme case of insomnia.
Welcome to the real world of being an entrepreneur in South Africa. If you want to build a business that can not only survive, but thrive in a tough economy - you need to have all your ducks in a row. Claiming ignorance is not going to cut it. This is not high school where you can get away with anything by giving a teacher the "puppy dog eyes" look.
Not complying can have a number of negative consequences - some more scary than others. You might be able to hide away from someone coming to check your TV licence - but SARS has eyes everywhere. If your company is not compliant, you could face some very serious legal and financial consequences. You could lose your business because of willful ignorance. I know for most of us, the word "legislation" may as well be an expletive, but you can't get away from it. Face it head on. Find out what you need to do to be compliant, and get it over and done with. Rip that bandaid off. Its painful for a moment, but you'll be glad you did it later.
Are you ready? Make sure you have match-sticks handy so you can keep your eyelids open during the next paragraph.
Different forms of business have different compliance requirements when it comes to things like:
- The CIPC (Companies and Intellectual Properties Commission)
- Accounting records and financial statements
- Audits
- Solvency and Liquidity
- Directors and prescribed officers
You'll also need to investigate what your compliance requirements are in terms of:
Company Tax
VAT
PAYE
UIF
SDL
COID
and WTF. For those of you who aren't familiar with WTF, your social media strategy needs some attention. If clients are using this term when it comes to your product or service, you have some pressing customer service issues to deal with.
If you're really battling to sleep, you may want to read through the following Acts:
The Companies Act, No 71 of 2008
The Income Tax Act No 58 of 1962
The Unemployment Insurance Act No 63 of 2001
The Skills Development Act no 97 of 1998
The Compensation for Occupational Injuries and Diseases Act no 130 of 1993 as amended
The bottom line is, know and make sure you comply with the requirements for your form of business. And make sure that your business is compliant in terms of the above legislation.
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