Business compliance as a service refers to a business abiding by all of the applicable laws and regulations on how they conduct their business, their personnel, and the treatment they provide their customers. There are various regulations that are governed when a business breaks any of these rules. Some of these regulations include the Fair Credit Reporting Act (FCRA), the Fair Debt Collection Practices Act (FDCPA), and the Americans with Disabilities Act (ADA). All three regulations deal specifically with the rights of the business and how they are regulated. Businesses must follow all applicable laws and these laws have repercussions on business operations.
When a business is in the process of changing their internal or external requirements
they will first need to comply with the FCRA. The Fair Credit Reporting Act also applies to all applicants to the FCRA and each company must continually update their documents and records to stay compliant. These laws can result in a business being removed from the credit bureaus database. If this occurs then an organization needs to file an annual letter with all three bureaus stating their intent to comply with all applicable laws and their reasons for doing so. Filing the documentation is an excellent first step for all business to take towards becoming compliant. This will help maintain your good standing with the bureaus and keep you in business long term.
Business Compliance is another requirement that small businesses must follow if they wish to remain in business and remain compliant. If a business breaks any of the FCRA regulations or the Fair Debt Collection Practices Act, they will be required to undergo an investigation and come up with a plan to correct their behavior. When a business is investigated they are required to submit documentation on what happened during the investigation as well as any corrective actions they took. Submitting a letter with formal allegations and a plan of action will allow the company to correct their behavior and make sure they do not break any additional regulations.
The fourth requirement that businesses must adhere to is that they must make sure they are in good standing with all three agencies. Any business who fails to comply could find themselves having their federal funding withheld and having their tax status pulled. All of the fines and penalties associated with a non-compliance could result in the loss of one’s business license and shut them out from the community. The penalties for FCRA violations can range in size and in severity, so make sure your company is properly compliant with all of the legal obligations associated with operating a business in your community.
If a business is found to be in violation of one or more of the above business compliance obligations,
they will likely find themselves facing fines or penalties. Fines for FCRA violations can run into the millions of dollars and finding yourself in default of your FCRA obligations can lead to criminal charges and many times the termination of your business. Finding a way to correct your business situation and become compliant is important if you wish to continue operating your business in the same manner that you have for the past several years. While fines and penalties can be levied on your company, the best way to avoid fines and other complications is to take the steps required to establish and maintain good standing with all three agencies.
The first step in maintaining good standing is to ensure that all of your accounting documents reflect the correct transactions for the past calendar year. Your business compliance officer should be able to provide you with copies of all of your tax returns for the past three years as well as a statement of all of your revenue for that time period. This includes but is not limited to, sales figures, expense statements, invoices, receipts and other documentation that demonstrate how your business was conducted during the year and an accurate reflection of how you managed your business finances.
- The next step in maintaining good standing with all three agencies is to make sure your employees understand the importance of maintaining business compliance.
- Make sure all of your employees have been properly trained and know how to report all of their business expenses and revenue.
- Make sure that you regularly review your financial records to make sure that everything reported has been received and that there are no mistakes in your accounting documents.
In order to make sure that all of your employees know the importance of keeping track of their business expenses and receipts, make it mandatory that they receive training in fiscal accountability. If they do not, you can expect them to overspend, which can have severe ramifications. Invoices can get delayed and money can be lost.
Business compliance officers are responsible for reporting any criminal compliance issues to the proper authorities or face criminal charges themselves. There are some companies that have internal compliance units, but if your business is large enough, it may be wise to hire a compliance agency. These agencies can provide advice and instruction for companies in need. They can also serve as a defense against potential fines and penalties. Remember, when your business is being investigated for criminal behavior, it’s best to play it safe than sorry and make sure your company is compliant from top to bottom.