Intacct Ready For SOX Compliance Market
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On-demand ERP vendor Intacct will announce next week that it has received the coveted SAS 70 certification, internetnews.com has learned.
The company is confident that this accreditation will be a springboard for Intacct to win ERP deals with small and medium-sized businesses (SMB) that link to larger companies' supply chains.
"That part of the SMB market is ripe for Intacct," CEO Robert Jurkowski told internetnews.com.
The SAS 70 certification opens the burgeoning compliance market by helping eliminate concerns some potential customers may have about adopting an on-demand solution.
"It removes barriers of indecision for potential prospects who are considering using that delivery model," noted Beth Enslow, an analyst with the Aberdeen Group.
Public companies regulated by the Sarbanes-Oxley Act of 2002 (SOX) must prove that their internal controls and procedures are entirely reliable, and technology infrastructure is a key component of that requirement.
"Public companies need the infrastructure to be certified. Otherwise they face very expensive audits," noted Jurkowski.
But Jurkowski said that Intacct is focusing on privately held companies, even though they are not subject to the requirements of SOX.
"A lot of private companies that are not yet public are interested because, in a lot of cases, their exit strategy is M&A, and if that [merger] happens to be with a public company, they will need the same due diligence," he said.
Moreover, private companies that bid for contracts with public companies are increasingly being asked by their partners if they are SOX-compliant.
"Public companies are asking the same questions of suppliers that their auditors ask of them," Enslow told internetnews.com.
According to Intacct, it is the only on-demand ERP provider to have received the Statement on Auditing Standards No. 70 (SAS 70) Type II Service Auditors' Report from Grant Thornton LLP.
The audit ensures that Intacct delivers its Web-based financial management, supply chain, professional services automation, and business intelligence applications in accordance with standards established by the American Institute of Certified Public Accountants (AICPA).
Intacct has more than 2,200 customers and 7,700-plus subscribers.
SAS 70 is a widely recognized, third-party review standard developed by the AICPA to allow service providers to report on their control activities and processes to customers and customers' auditors.
A formal report, including the audit firm's assessment, is issued to the service provider at the conclusion of the SAS 70 review. Intacct intends to renew its SAS 70 certification annually.