Corporate Governance
What is your company doing to satisfy Sarbanes-Oxley with regard to telecommunications expense management?
Your Challenge
With telecommunications and related expenses typically one of the largest IT expenses for Fortune 500 companies, CFO’s are taking more of an interest in how telecom expenses are reported. However, for many companies the telecommunications expense area is poorly controlled, leaving companies vulnerable to regulatory penalties.
In the current business climate, strengthened corporate governance, financial transparency, and accurate reporting are foremost among the concerns of Fortune 500 companies, forcing CFO’s to not only validate their financial records, but to also document the underlying processes by which those numbers are generated.
The Impact of Sarbanes-Oxley
Much of the attention from CFO’s on telecom expenses is a direct result of Sarbanes-Oxley legislation which stipulates that CEO's and CFO's must sign a document attesting to the veracity of their company's financial statements. Therefore the accurate reporting of these types of large expenses on financial statements has become essential. To achieve compliance, companies must have internal controls, along with documented processes and workflows that can trace the origins of reported financial information.
MBG Advantage: Increase Accuracy Through Automation
MBG provides automated processes and internal controls that can help a company comply with Sarbanes-Oxley regulations. Through our unique Chargeback and Inventory solutions, companies can reconcile their telecommunications expenses because they are provided with:
- Automated processes that show workflows and detail revealing the sources from which telecommunications expense reports are derived
- The ability to view detail behind the allocation of expenses across departments, with full transparency from the top level down to the transactional detail
- Companies can reduce the time it takes to conduct an audit by implementing automated solutions that report financial information
In the case of reporting telecommunication expenses, large organizations are handling information from numerous carriers, across several offices, which can easily be reported inaccurately if a company is handling this manually. In fact, some research organizations estimate that 90% of a company's Sarbanes-Oxley compliance budget has been spent on internal staff and consultants.
To learn more about how MBG's unique telecommunication expense management solutions can support corporate governance initiatives and help satisfy Sarbanes-Oxley regulations through automated processes, contact us today.
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