Regulatory compliance is already a huge CFO headache. Often expensive and contrived, every company supports teams of people and huge banks of costly information technology. With Sarbanes-Oxley requirements, The Patriot Act, and other government regulations requiring more accountability, compliance is only going to get more complicated.
Increasingly, stakeholders and government agencies require more accurate, up-to-the-second financial information. The cost of ignoring the changing face of regulation compliance is high. Organizations that fail to show their compliance are subject to penalties, including fees, monitoring, audits, and more. Additionally, executives holding personal responsibility for meeting regulatory deadlines can face personal fines, even jail time.
Changing internal processes to meet with regulations is a priority for every CFO. After allocating funds and capital to design and implement new standards and practices, poor adoption and training often translates into surprising hidden costs. Maybe they are fined after someone discovers a department is not 100% compliant, or perhaps failure to adhere to reporting standards causes an accounting quagmire. Whatever the problem, the right IT solution can turn regulatory compliance from an expensive mire to an effective foundation for operational efficiency.
While many companies think that throwing money at the problem will make it go away, buying more technology that simply looks good on paper will not address the issue. Instead, smart CFOs work with their existing standards and practices, implementing software as a service (SaaS), and other value-oriented solutions that automate their regulatory compliance and drive top-line growth.
Drive Compliance and Efficiency with SaaS
Many CFOs are turning to SaaS solutions because they usually offer lower up-front costs than traditional technology expansions, while driving dramatic boosts in compliance and efficiency. They accomplish these goals by automatically correcting two problems with other forms of compliance regulation.
- Human Error - By collecting information in a predefined way and according to predefined schedules, SaaS solutions drastically reduce errors that result from forgotten information, illegible writing, and other typical problems.
- Technology Disparity - An automatic, company-wide SaaS solution creates a centralized information portal, focusing a wide variety of different data points into a single current, contextual reporting platform.
CFOs are thus empowered to plan, forecast, budget, and review their organizational responsibilities with absolute confidence in regulatory compliance.
With an automated SaaS solution, CFOs have constant access to the newest information available, in context and on time. SaaS provides benefits that CFOs crave:
Financial Visibility
Since compliance regulations typically require CFOs to make financial information visible, SaaS solutions provide powerful reports to the people who need them.
Supply Chain Visibility
SaaS solutions provide increased reporting power on purchasing commitments, acquired assets across a portfolio, volume guarantees, and contractual obligations.
Expense Management Solutions
Automated solutions provide employees with strict rules associated with purchasing and project management, so CFOs know employees are following the right procedures.
Automatic Notifications
Since information gathering and compiling is automatic, SaaS solutions can automatically notify CFOs of looming problems, so they can take the appropriate next step and avoid violating regulations.
Segregation of Duties
With strict, unchanging rules, everyone knows where they are responsible, so there is no “passing the buck.”
What Does an Effective Solution Look Like?
While automated SaaS solutions are often cheaper than purchasing new IT infrastructure, it is important to evaluate the services effectively. After all, the cheapest solution may not provide the best value. (Can we link to the off shoring article we did, that discusses the value/cost issue?) Before signing a subscription contract, progressive CFOs are evaluating their software based on things like:
Business Needs
An automated SaaS solution will improve your compliance and efficiency, but only if it fits your business model. Make sure the solution is capable of monitoring both general and specific business trends within your organization.
Visibility
CFOs need to provide constantly updated, contextual information. Make sure the SaaS solution updates, reacts, and reports as quickly as your company does.
Scalability
With a clear vision of the future, smart CFOs select SaaS solutions that can grow with the company.
Connectivity
The benefit of SaaS is that information is available anytime, anywhere. Make sure that the SaaS solution will communicate with your IT backbone.
Compatibility
Whether replacing or integrating, the SaaS solution has to interact with your existing enterprise solution.
Auditing
In order to ensure regulation compliance, CFOs need to audit their systems and divisions on a regular basis. Make sure to select a SaaS system that helps, rather than complicates the issue with automatic auditing.
The Bottom Line
While selecting an automated SaaS provider for regulation compliance can be tricky, it is well worth the effort. Not only can SaaS solutions save money on IT infrastructure and labor, but they also automate many of the compliance issues that frustrate C-level executives. Effective CFOs look to the future, and ensure regulation compliance with value-oriented, automated processes that remove human error and drive productivity.
Call Infocrossing Now
For more information, please contact Infocrossing at 866.779.4369.
