Legal compliance should be a priority for all businesses and organizations operating in Canada. Noncompliance with federal legislation can be severely detrimental, resulting in fines and other penalties that can make a dent financially and even affect operational processes. Below are 3 simple rules that you should follow in order to ensure legal compliance for your business.
Have a Dedicated Compliance Officer(s)
Navigating the laws and regulations your organization needs to follow in order to be compliant is no small feat. Understanding all of the nuances and complexities is not a part-time job, nor is it a role that anybody can tackle. With the stakes so high, it is important that somebody (even a team of people depending on the size and nature of your business) be in charge of managing legal compliance. Smaller businesses may want to outsource this, though for bigger companies having an in-house compliance officer or team will help lessen the risk of legal noncompliance.
Create a Record Retention Policy
Canadian record retention laws require that corporations, trusts and organization keep adequate records that provide enough details to determine tax obligations and entitlements for a period of six years. Failure to comply with record retention laws could result in fines and other legal repercussions that are harmful to your business. This is why it is pivotal to develop a formal records retention policy that is properly managed and enforced within your organization.
Implement a Document Management System
Document management systems help greatly in ensuring legal compliance, in a variety of ways. First, they are invaluable in ensuring record retention policies are managed adequately and adhered to by streamlining processes and offering a more efficient way to file, store, organize, secure and retrieve business documents. Second, they allow organizations to automate HR processes and reduce errors, making compliance to employment laws and regulations much easier. Additionally, a centralized document management system allows for greater control over all business documents, meaning that in the event of an audit everything is readily available and organized properly. All of these features not only help to ensure legal compliance – they also improve operational efficiencies within your organization.
When these simple rules are followed, businesses of all types and sizes can ensure that they remain legally compliant. This results in both risk mitigation and improvements to current business processes, which can positively affect the bottom line.