The SEC’s server crashed
while filing Form 10Qs, causing several companies to miss this year’s 10Q deadline.
Although many factors will cause a server to crash, it seems heavy traffic, all
at once, caused the SEC server to malfunction during the busy 10Q filing period
this time.
Imagine thousands of
people trying to fit through a tiny space to exit a burning building. This is
similar to how heavy traffic might also crash a server. A large queue prevents
users from accessing a website, and many people think that the website has
crashed when in reality the server is simply overloaded. At Edgar Agents, we
suggest companies adhere to some common practices to dodge this problem and
never miss a filing deadline, regardless of server failure.
Plan
to File Early
We
recommend setting a goal to file a few days before the due date, but if it
cannot be avoided we recommend companies file by 2:30 pm on the deadline date.
Many companies have to file dangerously close to the deadline time for reasons
outside of their control, so it is inevitable that heavy web traffic will
increase significantly around 4 pm EST. This could very likely overload the SEC
server, causing delays and even crashing the system altogether. Filing before
2:30 pm escapes the chances of being caught in a glitch.
Get Organized
Create
a list of items that need to be done by specific dates or times. No matter how
close you are to the deadline, be sure to sort out and prepare the most
pertinent pieces first before executing your plan of action. For more on
getting organized, check out our blog post Preparing Your Filings in Half the Time.
Make
a Checklist
As
with all filings, you must always be aware of your deadline. Create a checklist
according to due dates. Only list the most important pieces of the puzzle so
you don’t overwhelm yourself. Then simply address all the items on the list in
an orderly fashion. This simple task will help you stay focused when things get
hectic at the final hour. Also, create internal deadlines for each item to help
you manage the process. This way you’ll be ready to file sooner than later.
For
help creating your checklist, refer to the Deloitte & Touche LLP SEC Compliance Checklist for Annual Reports on SEC
Form 10-K.
Use
Online Tools
After
you’ve created a checklist, incorporate these items into a calendar to share
electronically. The Edgar ® Agents 2016 SEC Filings Calendar is a great source to start since it
provides all the deadlines, SEC holidays and any other important dates you
should know about when filing your documents. You can also make copies for all
parties involved so they keep track on their own as well. This way everyone
stays on the same page and uses the calendar as a tool when discussing next
steps. Google and Outlook calendars also provide efficient online features,
such as reminders.
Submit
Financials First
When
you are ready, submit your financial statements and notes first – these take
the longest to process. Statements and notes need to be formatted in Edgar ® while specific information needs to be
tagged in XBRL throughout the document. This procedure can take some time to
administer accurately so sending in financials ensures you will have time to
make any edits before the deadline. You will also be less likely to overlook
inaccuracies.
Use
Proofreader’s Marks
While proofreading your document, use the proper
proofreader’s marks. Be sure to incorporate marks that actually request a
specific edit and avoid ambiguous symbols that neither correct nor give
direction. If you are not familiar with proofreader’s marks, the Chicago Manual of Style, AP or Merriam-Webster are excellent reference guides.
Although some symbols may vary, most marks are similar enough to be universally
recognized. Also, double check the submission page to make sure the form type
and filing period is accurate.
Send
Changes in Bulk
Submit
all your changes at once or in one proof. If there is more than one party
reviewing the document, submit everyone’s edits, plus your own, in one email or
in one proof if possible. This could help speed up the alteration process.
Also, be sure to work off of the latest draft when making edits. Working off of
an older draft can be confusing to all parties involved.
Check
Signatures and Dates
Make
sure all signatures and dates are accurate when submitting your
documents. Even if the filing date could change during the conversion
process (for example if a company decides to file on another date), be sure to
double check the dates and signatures before giving final approval. It’s
important to remember that for Edgar ®/XBRL,
signature requirements are satisfied with the signatory’s name typed into the
electronic format, but Registrants are required to retain manually signed
authorizations of the typed signatures for five years.
Apply
Policies and Procedures
If
there is anything about filing electronically that you are doubtful about and
your research doesn’t answer your questions, give us a call ahead of time. We
can help guide you through the necessary steps so you’re prepared to file
before the deadline. In addition, be aware that in annual reports companies are
required to disclose whether periodic and current reports are available on
their website. To assist with this, Edgar ® Agents offers its clients an XBRL
widget that can be
easily uploaded onto their site and updates automatically to display the latest
financials. Ask about our XBRL widget when you call.
Trust
Your SEC Filing Agent
Finally,
it is critical to trust your filing agent. Edgar ® Agents provides unparalleled customer
service for its clients and is available 24×7. We also take on last minute
projects even during heavy filing periods. If you are not satisfied with your
filer, it’s time for a new one now.
To
learn more about Edgar ® Agents and our services, call us at
732-780-5036 or email us at info@edgaragents.com.
Also visit our site at www.edgaragents.com or send us a note on any of our social
pages. Twitter, LinkedIn, Google+ or Blogger.
