Probably the most visible of these was the Sarbanes-Oxley Act of 2002, which was intended to prevent corporate malfeasance of the kind that was witnessed at Enron – a company valued in the billions. Its financial gatekeepers were found responsible for significant wrongdoing through inaccuracies in bookkeeping, expense report documents, and more.
However, SOX is only one of many different responses to the changing regulatory landscape. Canada has its own strict rules, and as Europe has moved closer to financial integration, it has also developed a sophisticated – and some would say punitive – compliance landscape.
When one looks at overhead related to compliance, the reality can be chilling: A recent article in the Journal of Accountancy reported costs for SOX compliance are on the rise. It is not unusual for mid-sized businesses to spend between $2 million and $5 million in U.S. dollars on compliance testing.
Why Is Compliance So Expensive? The Automation Perspective on Expense Report Software
Business journalists have posited that one reason for the skyrocketing cost of compliance is the inability or lack of desire among businesses to automate controls.
Even more than a decade after the first implementation of Sarbanes-Oxley, many businesses are still refining their financial control structure.
This being the case, the best way to reach compliance automation might be through automating the fundamental financial processes that go into it.
Expense report software can help businesses take a major, and much-needed, step toward an eventual automation of all major compliance issues.
ExpensePoint is expense report software designed to give financial decision-makers the ability to approve, disapprove, capture, and archive major expense documentation so that audits will be easier than ever before. That even includes documentation related to business travel.
As businesses continue to take advantage of the “software as a service” paradigm, it will grow easier to comply with SOX and international compliance regimes using far fewer personnel than ever before.
The Time Is Right To Act On Expense Report Software
As most of the market is trending in just one direction, the power to disrupt industries belongs to those who are able and willing to buck the trends.
Automation is the key to strengthening regulatory compliance, financial controls, and overall efficiency – and an investment in automation is compatible with scaling businesses internationally, even as regulations grow more complex.