To every business, keeping a track of day to day activities is very crucial. Considering the fact that micro-business are entities that operate on small capital and the profit margins are decent, log maintenance is all the more important. No business can afford to lose capital on unnecessary tasks. This precaution is all the more relevant for micro-business. This is the reason, that almost all the micro-business keep a track of everyday activities of every employee. A logbook is simply indispensable in order to keep the business profitable.
Accounting And Taxation
Often, the micro-business hires a third party or outsourced accountant for accounting and taxation related tasks. For large businesses, accounting and taxation suits can be handled with care, but micro-businesses cannot bear this load. In order to keep the entity safe from any suit or inquiry, legal compliance to the financial laws is necessary. Fred Wallace from E-Sandhurst.com explains that Goods and Service Tax is paid when cash is spent on goods imported from another country. This is just one example of why accounting and taxation for businesses are indispensable.
Complying With The Labor Laws
Every country has some laws in order to secure the rights of labor. Not just the rights but also to ensure that the labor is provided with appropriate working conditions, safety equipment, and justified wages for their work. Non-compliance with labor laws can invite suits at the door of a company and, in certain cases, can even lead to barring of the company from further operations. Simply stated, the labor law compliance for businesses is non-negotiable.
Billing And Profit Assessment
To keep a track of what the company is receiving and what it is spending, accounting is put in place. Even if the track of credit and debit of the company’s capital is maintained, it still may not safeguard the company legally. To protect the company from legal conflicts, all the debit and credit transactions are operated under the billing in the name of the company. A bill is a legally recognized receipt of the transactions undertaken by any business. Apart from just the legal compliance, billing ensures that the profits generated are all authentic and there are no hidden transactions made by the company.
These common but indispensable tasks are fundamental to micro-businesses. Other forms of business will certainly include more tasks and require a higher order of compliance. As far as micro-business is concerned, the low volume of exchange of goods and services, and limited profit potential are easier to manipulate. These fundamentals ensure that the business operation is smooth and trouble-free.