Have You Performed a Legal Audit of Your Business? You Should!

You have a lot going on with your business as you deal with big-picture strategy as well as daily operations. In the hustle and bustle, it can be easy to overlook your legal requirements under local, state, and occasionally federal law. Even if you do your best to comply, things can slip by fast, and one mix-up can end up costing your business thousands of dollars or even forcing you into bankruptcy. How can you avoid this nightmare? A legal audit might be the answer.

What is a Legal Audit?

While you may cringe at the idea of an audit, a legal audit is something that you should want to do. In a legal audit, a professional will review your company and its operations and determine whether you are complying with the array of laws that affect your business. This type of internal audit helps you catch problem areas before they become real hazards for you and your company.

In a legal audit, someone who knows California business law will review virtually every aspect of your company, from employment practices to intellectual property issues. They will let you know if you are in compliance with everything—and if you aren’t, they will give you some practical steps on how to get there.

Why is a Legal Audit Important?

You know your business. It’s challenging to keep up with legal requirements on a regular basis as well. Even if you were compliant when you opened your doors, the rules may have changed, either because laws have been altered or your practices have changed. As your business gets bigger, more laws and regulations may apply to you as well.

Having regular legal audits will help you stay on top of your obligations. It will also help you address potential problem areas before they cause litigation or generate fines and penalties from various government agencies and taxing authorities.

What Does a Legal Audit Address?

Your obligations under the law as a business owner may extend much further than you think. In fact, they can touch virtually every aspect of your business. A legal audit will often address things like:

  • Hiring practices
  • Intellectual property
  • Contract review
  • Employee benefit programs
  • Healthcare requirements
  • Bookkeeping and finances
  • Insurance requirements

If you have specific legal questions, Integrated General Counsel can address those as part of the legal audit process as well. Make it your New Year’s’ resolution to schedule a legal audit—your business will thank you for it.

Written by Integrated General Counsel

Our focus includes handling a variety of corporate matters and also includes litigation in state and federal courts. Our current practice includes providing transactional services and representing a variety of small and medium-sized companies as their outsourced general counsel.