FloQast Releases Enhanced Internal Controls to Increase Close Accuracy and Accountability
Nov 14, 2018 | By Business Wire
New Preventive Controls Eliminate Inaccurate Reconciliations and Speed Exception Handling
LOS ANGELES, CA November 14, 2018– FloQast, a provider of close management software created by accountants for accountants to close faster and more accurately, announced the release of Strict Tie-out Mode, the latest addition to its Strict Suite Controls, FloQast’s internal controls framework. Strict Tie-out Mode prevents sign-off on reconciliations that are not tied out, even if the source data changes after initial sign-off. Strict Tie-out Mode augments other Strict Suite Controls to help organizations with increased compliance needs - including public companies or those in highly regulated industries - better address compliance requirements and improve close accuracy and accountability.
Unlike detective controls, Strict Tie-out Mode is a preventive control that blocks potential misrepresentations from creeping into financial statements before they occur. With Strict Tie-out mode, if a signed-off reconciliation falls materially out of balance, any current sign-offs are suspended and assignees are notified that the account needs to be reviewed again, with new sign-offs required. Additionally, a secure audit log is maintained so accounting team management and auditors have a complete record of all activity - including what changed, when it changed, and how the chain of sign-offs was affected.
Strict Tie-out Mode is the latest addition to FloQast’s Strict Suite Controls, which help organizations enforce segregation of duties between preparers and reviewers, and manage internal controls overall. These controls are especially useful for companies with compliance requirements such as the Sarbanes-Oxley Act (SOX). Other capabilities already in FloQast’s Strict Suite Controls include:
- Strict Sign-off, which restricts sign-off ability for any procedure to an assignee or administrator only; and
- Strict Folder Locking, which allows locking of folders only when all work on a folder is signed off as complete. This includes when Review Notes have been closed and all Checklist items and Reconciliations have the requisite preparer and reviewer signoffs.
“Our Strict Suite Controls have particular appeal to those organizations with increased compliance needs or face a more stringent internal control environment,” said Mike Whitmire, CPA*, CEO and co-founder of FloQast. “Our innovation around stricter controls is valued most by public companies, those planning to go public or companies with operations in highly regulated industries. But any company will benefit from systematic controls that assure the accuracy of financial statements.”
Rosaleen Pizarro from CFGI, a consulting firm that specializes in helping companies navigate accounting, reporting and compliance needs - especially emerging public companies - noted that Sarbanes-Oxley and other legislation require that public companies adopt strict controls like those in FloQast. “Public companies must not only define their business processes, but demonstrate how they enforce them,” Rosaleen said. “It is impressive that FloQast continues to rapidly innovate in this area. And just as importantly, delivers them in a manner that’s easy to implement and easy to use.”
FloQast Strict Tie-out Mode is part of the Strict Suite Controls and is available today. FloQast Strict Suite Controls are included at no additional charge in the Business, Corporate and Enterprise Subscription Plans.
To learn more about FloQast Close Management Software and how it can help increase your organization’s close accuracy and accountability, visit floqast.com/products.
FloQast is award-winning close management software, created by accountants for accountants to close faster and more accurately. On average, accounting teams who rely on FloQast close three days faster. Seamlessly integrated with ERPs and leveraging your existing checklists and Excel, FloQast provides a single place to manage the month-end close and gives everyone visibility. The cloud-based software is trusted by hundreds of accounting departments, including those at Door Dash, AdRoll, Indeed, Shopify, Ancestry.com, Twilio, Dollar Shave Club, Zillow and The Golden State Warriors. To learn more, visit www.floqast.com and join the conversation on Twitter at @FloQast.