Next-Level Controls for Financial Compliance

Compliance in accounts payable encompasses financial and IT security controls that adhere to regulations, company policies, and standards for paying supplier invoices with fewer errors and a lower risk of fraud.

Accounts payable workflow automation strengthens internal controls. It ensures consistent and complete invoice processing with supplier validation, invoice verification with exceptions flagging, approvals, secure payments, and role-based access that facilitates the segregation of duties. Instant payment reconciliations contribute to the accuracy and timeliness of financial statements.

For better internal controls compliance, accounts payable automation provides near real-time visibility into accounts payable and business spending, along with AI-driven analytics for business intelligence, enhancing management oversight and decision-making.

Compliance in accounts payable also encompasses global regulatory compliance when making payments and tax compliance related to supplier payments.

SOX compliance in accounts payable refers to the adherence to standards and policies for internal control during supplier invoice processing through payment and reconciliation, as well as accurate and reliable financial reporting, as mandated by the Sarbanes-Oxley Act.

Key Sarbanes-Oxley AP internal control steps include assessing and mitigating risks, as well as designing and implementing adequate internal controls to prevent fraud, duplicate payments, and errors, and to protect cash. Internal controls fall within an effective enterprise risk management (ERM) framework and include setting a proper tone at the top of the organization.

Section 404 of the Sarbanes-Oxley Act relates to management’s assessment of internal controls over financial reporting (ICFR) and the external auditor’s attestation of management’s internal control adequacy assertion.

Internal controls in accounts payable (AP) include audit trails, computer controls, segregation of duties, supplier validation, digital three-way matching, invoice verification, fraud monitoring, error detection rules, automated coding, approvals complying with company policies, and secure global payment processes.

AP automation solutions strengthen internal controls in a business or non-profit organization. Accounts payable automation software significantly reduces human errors, duplicate invoice payments, and fraud risks that would otherwise occur in a manual accounts payable system.

Internal controls result in the accurate and timely recording of accounts payable and related expenditures in the general ledger and financial statements. They are part of an effective enterprise risk management (ERM) framework and include setting a proper tone at the top of the organization for proper business practices and accounting that complies with U.S. GAAP or other applicable international accounting standards.