The Sarbanes-Oxley act of 2002 holds company executives accountable for reporting any operational issues which may have a material impact on financial statements and the valuation of the company. Because people costs, including payroll, may represent an average of 50% of the expenses at an organization, time and labor processes fall under the scope of Sarbanes-Oxley.

The WorkForce Software Time and Labor system provides the means to manage and audit labor costs, so organizations can comply with Sarbanes-Oxley requirements. Here are some of the features designed for this purpose:

• Reduced risk of lawsuit because automatic calculation of pay ensures consistency in payments to employees
• Timesheet approvals ensure that all payments are authorized by management
• Audit trails of all transactions from the point of entry to the point of payment
• A fully automated and audited process to correct prior period errors through the use of “Amended Timesheets” ensures compliance for this critical process.
• Ability to delegate time approval responsibilities ensures tight control even when a manager is absent

Because auditors are now required to examine every area of the company that may have material impact on its financials, a powerful and auditable time and labor solution has become a necessity.