Treasury systems vendor Trema estimates that 43% of DAX 30 companies in Germany have installed its FinanceKit treasury management product, which allows them to drill down into accounting information in real-time. However, Mark Lewis, director of sales support,Trema, says financial reporting by most companies still took the usual two or more weeks, which does not constitute real time reporting.If their processes were correct, come 31 December they would be able to close their accounts and on the 1st of January produce the correct numbers with visibility and transparency without any window dressing. Could it happen that quickly? It may be impossible, Lewis says.
Capachin says even though companies had invested in technologyBoston-based AMR Research estimates that US public companies will spend $5.5 billion on compliance in 2004they may still have islands of reporting based on Excel spreadsheets.They need to go through the process that leads to the production of financial statements and make sure they are well documented,she says.For companies that dont have these sound practices, an auditor isnt going to help.
In the run-up to the first SOX deadline in November, she says companies should have ensured they have fixed any deficiencies in their accounting processes and tested them.The process will be made even more complex, she adds, for those companies engaged in M&A;, although they had a years extension.