1. Stay afloat on current regulations
Before thinking about how to make your business more regulation-proof in the future, it’s first wise to assess whether or not you’ve managed to stay afloat in the current regulatory environment. As mentioned above, if you’re a VAT taxpayer, then it’s likely that you’ve faced the onslaught of Making Tax Digital in recent months. If your business earns over the VAT threshold, for example, you’ll need to ensure that you use a VAT tax return filing system that is compliant with HMRC’s APIs.
Each specific industry also faces its own set of regulations. Businesses in regulation-heavy sectors such as food provision will often have to adhere to specific rules regarding hygiene, for example, and these can change rapidly. For niche, sector-specific work, it’s wise to consult some of the many books and websites that focus on disseminating this changing information.
2. Have a smart data system in hand
Although at first glance it may not seem like the most obvious use of such tools, data science can also help you to keep ahead of the regulatory curve. Take the example of Making Tax Digital: say you operate a business with a turnover of £65,000, which is a full £20,000 below the threshold. As your turnover creeps up and up, you’ll have plenty to think about – and regulatory compliance might not be the most pressing. But with a smart data system on hand, you can be notified as you approach the milestone.
By transplanting this function to other parts of your business, such as setting up alerts for when you make a return on investment on your marketing efforts, you’ll be able to increase profitability and efficiency at the same time as ensuring you’re on board with regulation. And you can make the most of the data you collect in this way by running it through a smart modelling system: that way, you’ll quickly be able to see all of the potential scenarios that your business faces without having to calculate precise effects and consequences yourself.
3. Make sure your colleagues are on board with the process
Successful regulatory compliance is down in part to monitoring, data and more. But it’s also down in part to creating a culture change and encouraging your teams to start thinking more carefully about what their regulatory obligations might be. By running training sessions (either devised in-house or delivered by an external business regulation expert), everyone will know what to look out for regulation-wise.
In most modern economies, regulation is a simple fact of life. It’s there to not only ensure that businesses fulfil their obligations to their customers and wider society but also to create the conditions in which strong businesses can thrive. By following these tips on staying ahead of the regulation curve, it’s possible to ensure you don’t get snared by regulation problems.
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