AOSI Summary: Key Legal Requirements and Financial Considerations

Flashcards covering key legal requirements, taxation, workplace health and safety, consumer protection, external professionals, and financial management for business establishment.

Business Name Registration

The requirement for businesses to register their name with ASIC (unless it is the owner's legal name) and obtain an ABN.

ASIC (Australian Securities and Investments Commision)

The organization with which businesses must register their business name. (unless the name is that of the owner)

ABN

Australian Business Number, required when registering a business name.

IP Australia

The agency where business names can be registered as a trademark if the name is important to the brand.

Taxation

The method by which the government collects money from individuals and businesses to fund public services.

Tax File Number (TFN)

A number that businesses operating as partnerships or companies must obtain for taxation purposes.

PAYG

A federal tax taken directly from an employee's wage and imposed on the employee.

GST

A $10\%$ tax on the supply of goods, imposed on all customers.

Business Activity Statement (BAS)

A statement submitted by GST-registered businesses to the ATO to report and pay tax obligations.

Food Act 1984

The legislation under which health regulations are enforced by local governments to ensure compliance.

Work Health and Safety Act 2011

The federal legislation requiring business owners to ensure a safe workplace through reasonably practical safety practices.

WorkSafe Vic

An organization that helps prevent workplace injuries, supports injured workers, and provides compulsory WorkCover insurance for Victorian employers.

Australian Consumer Law (ACL)

Federal and state laws protecting consumers and businesses from unfair trading practices, including rights to repairs, replacements, or refunds.

Freelancers

Independent workers who charge businesses or individuals for work on a per-job basis.

Bookkeepers

External professionals who assist a business in keeping and processing financial records.

Marketing Consultants

Professionals responsible for raising awareness of a business's products and brand with their target market.

Recruiters

External professionals used to find the right staff, often charging a fee based on the salary of the person employed.

IT Technicians

Specialists who set up servers and software, maintain systems, and troubleshoot technical problems.

Policies

Written guidelines that direct employee decisions and behavior.

Procedures

Step-by-step instructions that put policies into practice and establish business routines.

Separate Entity Principle

The legal and accounting practice of keeping personal and business finances separate by using different bank accounts.

Budgeting

A financial control system involving the estimation of future financial performance and comparison with actual results.

What should be considered when choosing the right bank account?

• Bank fees

• Credit Cards

• Intrest Rates

• Convenience & support

• Overdraft facility

What is a financial control system?

• Systems that allow the business owner to monitor &
  manage its financial performance.

What are some financial control systems?

• Budgeting

• Cash-Flow Managment

What are some technological issues?

• Tech in manufacturing

• Tech in marketing

• Remote Work

• Establishing customer databases

What are some global issues?

• Overseas suppliers & resources (Overseas suppliers can involve hidden costs, longer delivery times, and challenges finding reliable suppliers that meet quality and production requirements.)

• Customers & overseas retailers (AusTrade provides
  help to businesses who wish to seek oppotunities in
  overseas markets.)

What are some record-keeping strategies? + why?

Businesses must maintain accurate financial records to support
*decision-making*, *understand performance*, and identify improvements. They are also *legally required* to keep financial records for at least *5 years for tax purposes.*

• Cash book

• Source documents (original records of
  transactions + including name, date, amount of money involved.)

• Income Statement

• Balance Sheet