When the Sarbanes-Oxley Act (SOX) was first passed in 2002, the objections raised by accounting and finance leaders could be heard across the country. The time and money spent on bringing companies into compliance would far outweigh any benefits, executives predicted.

Four years later, the California Society of CPAs reports that SOX compliance is often accompanied by an unexpected side effect: a positive ROI. In their article “The ROI of SOX: SOX Compliance Investments Can Boost Your Bottom Line,” CalCPA reports that companies faced with having to comply with SOX are finding their investments in new technology and business processes are resulting in more efficient, streamlined operations. Executives are using SOX compliance as an opportunity to improve business management, as well as to reduce the costs of operations and internal audits.

CalCPA states that SOX compliance can open doors for companies to evaluate their processes and procedures in order to improve their business practices and bottom line.

The CalCPA findings were echoed in a survey conducted by CFO Magazine. Of the 213 executives surveyed, 70% said their companies gained at least some value by complying with section 404 of the SOX legislation. Of those feeling compliance offered some benefits, 93% said that value came from improved business processes while 23% stated new technology was also a plus. The combination of improved processes and new technology ultimately mean that compliance has provided organizations with improved controls for detecting fraud, better methods of preventing loss or misuse of financial data and the means of ensuring a quick reaction time, should a breach occur.

It is true that SOX compliance investments come with high costs and there have been many complaints about the SOX compliance burden that has faced companies in the past, however the aforementioned findings, by CalCPA and CFO, are a clear indication that these complaints are now unwarranted. Not only are executives seeing improvement in their business practices because of the compliance, they seem prepared for more reform in the future and are not at all afraid to take risks as those in the press had previously predicted. Businesses can, in fact, boost their bottom line if they approach SOX compliance as an opportunity instead of a nuisance.

As accounting and finance recruitment specialists, Acsys, Inc. works with an extensive network of skilled professionals that have a wide range of experience to meet the needs of companies across all lines of industry. Our team of staffing experts works to provide clients with the latest trends in accounting, finance, recruiting and retention. Together with our sister company, Accountants Inc., we conduct in-person interviews with over 4,000 hiring managers each year, discussing the issues they feel are most critical to their business. How companies are dealing with SOX compliance is just one of the topics covered in this year’s survey, which is now underway. To find out how your company can participate in the survey or to help you meet any current project or direct hire recruiting needs, contact your local Acsys, Inc. representative today.