SOX Compliance Software: Here’s What You Need to Know
Compliance is a complicated, time-consuming, and expensive —but necessary— part of your business. As a business owner, you must meet countless requirements, complex accounting regulations, and changing reporting standards.
That’s a lot for just one person to keep up with, but so important. Maintaining compliance protects you, your company, and your investors from poor business practices.
What is SOX Compliance?
The Sarbanes-Oxley Act (SOX) was passed in 2002 to establish regulations and put a system of checks and balances in place to protect the public from fraudulent activity. Many companies in the United States must comply with SOX, such as publicly-traded companies and wholly-owned subsidiaries.
SOX provides a framework for businesses to become more transparent with their financial reporting and disclosures. Companies must implement internal controls designed to ensure accurate tracking, mapping, and assessment of financial records. Implementing the robust internal controls outlined in SOX will encourage greater public confidence and generate more interest from shareholders.
SOX Compliance Software: Your Solution to a Complex Problem
With a SOX-compliant software solution, you won’t need to worry about the challenges of preparing for complex audits, such as reviewing manual processes, disconnected systems, or siloed functions. The right software solution will support SOX compliance by automating and streamlining the process. A trusted team of accountants will keep your reporting on track, address key functions, and mitigate your financial risk.
Essential Features of SOX Compliance Software
There are a few key features you should look for to get the most out of your software investment. Here are a few of the features and benefits you should gain from a SOX-compliant software:
- Automated Reporting and Scheduling. Increase productivity and efficiency with advanced reporting tools and customize your reports to meet SOX regulations.
- Robust Data Security. With high-level, air-tight data security and disaster relief, be confident that your sensitive information is as secure as possible from cyber threats and natural disasters.
- User and Role-Based Permissions. Setting boundaries for users and establishing a segregation of duties within your financial software reduces the chance of internal breaches and is a good practice for reviewing user activity according to SOX compliance.
- Regulatory Compliance Assessment. Automate the process of assessing risks and vulnerabilities, giving you the peace of mind to focus on more important areas of your business while knowing your company is up-to-date with ongoing compliance standards.
By using the right accounting software and working with an outsourced team of knowledgeable experts and accounting controllers, keeping your financials compliant and more predictable is simple.
At Lescault and Walderman, we specialize in the entire accounting process —from bookkeeping and reporting to the intricacies of SOX compliance. We will help select and implement the right solution for your business that offers you the best features for building better business processes.
Sign up today for a free introductory call to find out which software is best for your needs, learn about how you can get the most from its features, and how we can provide ongoing support for your financials.