Since the Sarbanes-Oxley Act was passed in 2002, companies have been drowned in additional spend management paperwork to ensure that corporate financial records meet strict guidelines. Given the complexity of meeting SarbOx’s provisions, most companies have turned to software to help automate their compliance endeavors.
Software makes it easy to compile complete records. Given that financial statements must now be more detailed to stay in a state of Sarbanes-Oxley compliance, this is crucial. As an example, consider your company’s employee expense reports. The old method of keying a paper report into an accounting system is no longer adequate. Software for expense reporting stores detailed data on every expense item with supporting documentation.
Storing a great deal of data is not enough for SOX compliance, though. Your company also needs to maintain a full audit trail. Using traditional accounting methods to maintain full audit compliance is, at best, a Herculean task. Spend management makes auditing easy because every entry is dated and stored in a large database. With that functionality, transactions are consistently at your fingertips, rather than stored inside some box in a storeroom. Failing to maintain an audit trail for five years is an offense that can lead to imprisonment under the terms of the Sarbanes-Oxley Act, so keeping track of corporate finances is especially essential now.
While complying with Sarbanes-Oxley’s myriad regulations is a daunting challenge, publicly-traded businesses have no choice but to follow its requirements. The easiest and, in the long run, most affordable way to do this is to use software to assist with spend management and Sarbanes-Oxley compliance.