The Sarbanes-Oxley Act or Sarbox has been one of the most debated acts of the corporate world in the latest times. The act was passed by the Senate by 99 votes in support and 1 vote abstained. This act was passed so that the investors can be sure about the practices being adopted by the publicly listed companies. Though the act was signed by President George W. Bush as one that would be bringing a new wave of financial responsibility and accountability to the firms. Though it has been opposed in the corporate sector due to its high cost implications ever since it was brought into force, there is no way out for the companies. You have to ensure that you comply with Section 302 of the act.
This act is a wonderful opportunity for the corporate sector to bring better financial practices to their businesses. However, the only issue here is the cost. If you depend on quality cloud-based purchasing software, you would be able to reduce the costs and also make sure that the financial health of the company is kept in check. By getting cloud based purchasing software, you would be keeping all the tensions of manual bookkeeping and inventory management at bay. The software has been designed especially for handling all the major aspects of a business’s financial needs.
The software itself will help track stock and inventory levels, handle daily transactions and even provide your period reports. All these are essential steps as per Section 302 and 401 of the Sarbox Act. SOX Compliance goes beyond this with the use of eprocurement software. As everything is digitalized and becomes more accurate than ever, an internal control is easily maintained in the organization. There would be a single standard for handling all the business financial transactions. Therefore, it would be complaint with Section 404 as well. Therefore, you would be getting a fully automated structure in which the only thing that would be left to do with the PO manager was to enter the right strings in the software. The rest would be handled by the software itself and easily assist in bring you into compliance.
As the software is cloud based, the senior management would also be able to keep the inventory and finances in check. The data would be accessible to all the people involved in the process and even archiving would be possible. As a result, any attempt at financial fraudulent activity becomes next to negligible. It would be a small step that would not only benefit the whole enterprise through SOX compliance but also help in enhancing its overall productivity.
