UK Firms Struggle to Comply With Tougher Reporting Regulations
Inefficient reporting processes will prevent many UK companies from complying with new auditing regulations, such as Sarbanes-Oxley, according to a survey of finance directors. The report, commissioned by software company Macro 4, found that 71 per cent of finance directors admitted to feeling under greater pressure to meet tougher reporting requirements. Seventy six per cent of finance directors surveyed reported that a lack of effective IT systems to centrally manage large volumes of business and financial documentation would hamper their efforts towards greater corporate accountability and transparency. Furthermore, 72 per cent of respondents complained that many of their core financial processes (such as accounts payable/receivable and credit control) are still too paper-intensive. Meanwhile, 48 per cent of respondents said that their financial processes are also too labour-intensive, despite investment in financial IT applications. The Macro 4 study warns that many UK firms are leaving themselves liable to heavy fines should they fall foul of new reporting regulations.