It doesn’t really matter what industry your small to medium size business is in, there are rules and regulations to which you absolutely must adhere. While most people understand the rules and regulations within the Food and Drug Administration (FDA) or the healthcare industry in terms of being HIPAA compliant, some of the governing bodies that establish guidelines for other industries such as manufacturing or within the financial sector may not be as apparent or readily understood.
In fact, there are many regulatory bodies on every level from federal to state to local agencies as well as those established by trade unions, for example. Each and every set of guidelines with their commensurate rules and regulations must be strictly followed or there will be consequences. That’s a given, and perhaps the only thing that SMBs readily understand. But have you ever wondered why those rules were set in place? Actually, those are the underlying reasons why they are important and how they affect your SMB.
A Quick Look at Regulatory Compliance within the Financial Sector
There are probably few rules and regulations as important to the average consumer or SMB than those within the financial sector. The reason for this is obvious. There is nothing as open to fraud and theft as anything having to do with money, and so all rules and regulations within the financial sector are set in stone, the importance of which is indicated by the huge penalties assessed for violating a single law.
In recent years and with the sheer number of ACH transactions, NACHA rules have become exceedingly important. NACHA is actually the governing body that oversees all things related to the digital transmission of money. Of prime importance are the Automatic Clearing House payments and debits that can significantly impact a consumer’s or business’s finances if mishandled. The penalties can be severe which is why it is imperative to work with a payment processing service that has built a solid reputation in the industry. In short, NACHA rules are there to protect your money during every ACH payment.
Workplace Safety and OSHA Guidelines
Whereas guidelines within the financial sector are brought about by the need to ensure safe and secure financial transactions, OSHA guidelines are in place to oversee personal safety and security in the workplace. The Occupational Safety and Health Administration, OSHA, establishes rules that involve anything that could cause health or safety concerns not only for workers but also for anyone impacted by those rules not being followed. When ‘life and limb’ are in question, the penalties can be high, so high that a business might even be made bankrupt. So then, the primary importance is health and safety, but second to that is the health of the business you are trying to run.
Rules Were NOT Made to Be Broken
As is the mindset of so many people, it needs to be clearly understood that rules set by governing bodies were NOT made to be broken. They are in place to protect people and property and any violation can carry severe consequences. You might get away with the ‘ten-minute break rule’ but when it comes to the rules and regulations set by governing bodies, those are meant to be followed to the exact letter of the law.