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Hidden Benefits of Dynamics ERP SOX Compliance in the Cloud


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Maximize ROI on your cloud based Dynamics ERP with SOX compliance support, even if you’re not publicly traded and never plan to go public.

dynamics erp sox complianceThe Sarbanes-Oxley (SOX) Act of 2002 requires public businesses to comply with a set of guidelines regarding financial data.  These guidelines protect the markets and investors against risk of fraud, data errors and information breaches.  But even if your company is not publicly-traded, you can improve financial reporting, protect your business and raise the potential value of your company with SOX compliant data policies and protocols. You can get an overview of SOX controls for financial systems in this eBook about ERP SOX compliance requirements.

Financial Reporting

Nearly 80-percent of survey respondents said they leverage their SOX compliance efforts to drive improvement of business processes that affect financial reporting, according to a 2015 survey conducted by audit firm Protiviti.  This marked an 18% increase over the previous year.

"This year’s survey shows that a majority of companies are not only spending more time and money on reporting requirements, but are also making significant changes to their compliance programs,” said Brian Christensen, an Executive Vice President with Protiviti.

By following SOX protocols these businesses have experienced ancillary benefits across financial reporting such as streamlined reporting processes with fewer errors, higher levels of detail, and tighter controls regarding governance.

Protect Your Business

In today’s corporate IT landscape, getting the most out of your ERP means staying up to date with the latest technology advancements to keep your competitive edge.  However, making changes to a financial system such as adding modules, integrations or upgrading to the newest version puts data continuity at risk. SOX Compliant change management policies and controls designed with audit-traceability in mind will protect the integrity of your financials while you or your cloud provider keep your systems current.

Since the cloud and SaaS have broadened the ERP user market, businesses of all sizes are looking for solutions to manage complex accounting practices.  SOX compliant data centers are subject to regular SSAE 16 Type 2 certification.  The SSAE 16 auditory process ensures that SOX physical security requirements are met.  These requirements protect against hackers, viruses, spyware and natural disasters such as fires.

While many cloud data centers maintain SSAE 16 certification, compliance and security also depend on people and processes. Full-service hosting providers who focus on SOX will also protect data systems through logical access controls, intrusion detection and SOX compliance best practices within their own IT operations management.

Rock solid recovery policies will help keep natural disasters from becoming business disasters. When it comes to enterprise cloud backup and recovery, ensure your info is safe and accurate by leveraging a SOX compliant cloud ERP system that is protected by multiple layers of redundancy and regularly backed up and tested.

You may not need to be SOX compliant today, but you still want your financial information to be guarded by the highest standards of documentation and protection. Achieve this by implementing the security controls required by SOX or choosing a cloud partner that has expertise in providing protocols and procedures to comply with SOX guidelines.

Increasing Your Value

Change is the only constant.  Even if you can’t imagine selling the business right now, you never know what is waiting around the corner.  In order to sweeten the pot for potential buyers down the road, especially publicly traded companies, maintain SOX compliant financial controls and reporting today to secure your company's financial reputation tomorrow.

Keep in mind, going public is always a possibility for the future of your business. Systems maintained through SOX compliant processes encourage underwriter confidence and help pave the way to a more streamlined and successful IPO.

Takeaway

Whether you are planning to go public or not, SOX policies will ultimately benefit your reporting, governance and risk management practices, and tight governance and financial controls make the business a more attractive opportunity to potential investors or buyers.  If you are currently running a Dynamics ERP solution in the cloud or you are considering going cloud, vendor selection is critical to ROI of the system.  Even if you don’t need a SOX compliant system today, wouldn’t you feel more confident going with a cloud vendor who offers proven uptime, security and personalized support that meet the stringent requirements of SOX?

by RoseASP

2 Responses to “Hidden Benefits of Dynamics ERP SOX Compliance in the Cloud”

  1. Data Sunrise says:

    Thanks for writing this nice blog. SOX compliance help to protect important data from the database and it barrier the harmful threat in the database.

  2. Datasunrise says:

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