Meeting the legal requirements of specific industries is the fundamental responsibility of software developers, as no business owner would risk using non-compliant software that can result in a substantial penalty and can even uproot the business. Therefore, it is no surprise that the Salesforce platform and its various apps meet the regulatory and legal requirements of industries so that it remains completely flexible for use across a wide range of businesses.
The onus of legal compliance for software used in business operations rests on business owners who are well aware of the regulation that they have to comply with. They check with the software developer to ensure that the features of software facilitate compliance especially the regulation named the Sarbanes-Oxley Act (SOX), 2002 that cuts across industry segments and applies for almost all kinds of business. What SOX is all about will be clear as you keep reading this article.
The history of SOX
Financial scandals in business are nothing new and keep happening, but few could match the scale and impact of the massive business scams that hit the US by the end of the last century and became more prominent as we stepped into the new millennium. A series of massive financial scandals like Enron, Tyco and WorldCom happened rapidly and in close succession that exposed the vulnerability of US regulations as applied to business.
The scams ripped off shareholders and investors mercilessly who appeared quite helpless. There was urgent need to safeguard the interests of investors, public, and shareholders and to restore their confidence in the system. It led to the introduction of the Sarbanes-Oxley Act (SOX), 2002, the brainchild of US Congressmen Paul Sarbanes and Michael Oxley that aims at preventing misreporting business figures that can mislead the public while improving the accuracy of disclosures through better corporate governance and accountability.
Regulation compliant software
The new law necessitated changes in the financial processes of business and the accounting methods to make it compliant with SOX for delivering results in the way stipulated by law. New standards of accounting came into force, and it applied to all kinds of business so that it ended malpractices that lead to fudging business figures. The processes were so elaborate and in-depth and involved such massive data compilation that doing it manually was never feasible. It led to the use of Salesforce SOX, software that is capable of adapting the regulatory framework and deliver results in accordance with it. By using the software, business owners derived the satisfaction that the business process conformed to the law.
Responsibility for finance and IT departments
Since the act covers the financial performance of the company, the responsibility of complying with it rests on the finance department as well as the IT department. The finance department is responsible for generating and using financial data, and retaining the record and retrieving it comes under the IT function. Hence both the departments have to bear the responsibility for legal compliance.
The software simplifies the task of legal compliance mostly as it does not allow any deviation from the law.
Lucy Jones is a veteran of the IT industry who had been associated for some time with Flosum.com, a company that sells Salesforce solutions. She is currently heading her own firm that offers various kinds of managed IT services and has a desire to venture into digital marketing.