At Edgar Agents, we pride ourselves on being a full service financial printer that helps companies with all their compliance needs from EDGAR and XBRL to financial printing and newswire services. In fact, a number of our earlier blog posts highlight these services.
In addition to filing financial information electronically with the SEC, companies are required to provide investors with printed information from proxy statements to earnings reports. Did you know that Edgar Agents has a comprehensive financial printing and typesetting service available for public companies, mutual funds, and IPOs?
Read our Typesetting and Financial Printing FAQ to learn more:
Does Edgar Agents offer typesetting and print services?
Edgar Agents is a financial compliance services group with extensive typesetting and printing services to handle everything from Annual Reports, Proxy Statements, Quarterly reports, Prospectuses, IPO equity offerings, mutual funds and other financial information. For more than 15 years, our printing experts have helped companies manage their entire project from EDGARizing, typesetting, printing, coordinating shipping distribution to the transfer agent, and full mailing capabilities to shareholders.
Leveraging automated technology, we provide single source publishing directly from typeset to EDGAR in a matter of minutes for accurate revisions and seamless proof distributions. Our enhanced programming and quality control procedures ensure integrity that you can count on.
How does Edgar Agents distinguish itself in the competitive financial services industry?At Edgar Agents, we take pride in delivering the highest level of customer service in the industry. This includes providing a concierge-level of service where we guide customers through the entire financial printing process and take a proactive approach to meeting your internal deadlines as well as SEC deadlines. Our team is focused on quality, accuracy and timeliness for every project we work on – each and every day.
Unique to the industry, we offer fixed rate pricing and custom packages. We never charge for rush projects or overnight and weekend projects. Our team is available 24×7 to help you at no extra cost. The rate you are quoted is the rate you are charged.
What is a single source typesetting platform?Edgar Agents leverages a single source platform for typesetting and financial printing. This allows critical, market sensitive filings to be drafted and executed seamlessly.
Specifically, the term single source refers to the single data file that is used to generate the EDGAR HTML submission and the typeset print version of a document. Using a single source platform ensures that the data for both the print document and filing submission is identical.
Having a single data source provides a significant time advantage. Your company or working group can concentrate on crafting the deal, not expending valuable energy on reviewing the content.
Does the Edgar Agents typesetting platform offer “granular” SEC compliant marking?Yes, all Edgar Agents typeset projects support SEC compliant granular marking, whereby individual words and number changes are discretely marked for each group drafting session.
Draft distributions of current marked and cumulatively marked proofs will ensure that your working group will be able to clearly see how and where the document has evolved since the last working group distribution.
Does the typesetting platform support distribution of changed pages only?Yes, our current marked drafts will contain only those pages that have changed specifically to the drafting session.
Will you be able to match and follow our style specifications and work with our art director?Edgar Agents welcomes stylized annual reports and specialized typesetting projects. We are happy to work with your team to ensure content and style accuracy. Reviewing your unique style requirements before your project deadline will allow our team to prepare a proof of concept for your art director.
For example, Edgar Agents typesetting process includes creating templates and applying style sheets to generate print ready documents. We create customized style sheets that conform to any style when generating output. Because we are able to work with any typesetting software such as XPP, InDesign and QuarkXPress, we guarantee high quality visual and structured layouts that are always accurate and secure.
Can you help us with the images in our document?
Edgar Agents can recreate and redraft line charts, organizational charts, pie charts and structural diagrams ensuring that the filing and the final printed document will have sharp high resolution images that are color corrected for printing.
Do you provide high resolution PDFs for typesetting?For all typesetting projects we provide our customers with high resolution print ready PDFs, Microsoft Word write backs or HTML exports. Other formats are available on request.
If I use your typesetting services, do I have to use your printing services?Customers can choose to use Edgar Agents for just typesetting and/or printing services. Traditionally customers use both our typesetting and printing services as it is more cost effective and we can offer custom pricing packages. By combining both services you are assured the highest quality result from beginning to end.
What type of printing technology does Edgar Agents use?Edgar Agents uses state-of-the-art digital or offset web presses for all our financial printing. By working directly with our print team on your print project, Edgar Agents can get your books printed on schedule and delivered cost effectively. Many deals that clear overnight can be on the street by morning.
#GetToKnowEdgarAgents Today! Follow us on Twitter @EdgarAgentsLLC.
Friday, February 20, 2015
Tuesday, February 17, 2015
Photo Album: Edgar Agents at Innovations 2015
Last week Edgar Agents attended the Brewer Sports Symposium VII which included their inaugural Innovations Conference in Miami.
With the cold, snowy weather we are having in New York and New Jersey, the Edgar Agents sales team - led by Teresa Cordero, VP of Sales - was excited to spend a few days in sunny South Beach.
With the cold, snowy weather we are having in New York and New Jersey, the Edgar Agents sales team - led by Teresa Cordero, VP of Sales - was excited to spend a few days in sunny South Beach.
Thomas Tapeh, CEO of RO2T & TLC Agencies at #Innovations2015
John H. Shaw of Maxim Group at #Innovations2015
Patrick Bertagna, CEO of GTX Corp with
Ambassador Jack Brewer of The Brewer Group with
Ritesh M. Veera of the Maxim Group with
Stephanie Lee of Strategic Capital Markets with
Conference Season: Brewer Sports Symposium, Roth Conference, and Growth Cap Expo
Last week Edgar Agents attended the Brewer Sports Symposium VII which included their inaugural Innovations Conference in Miami. With the cold, snowy weather we are having in New York and New Jersey, our sales team was excited to spend a few days in sunny South Beach.
However, this event was more than sun and sand – it was an opportunity for mid-market and emerging public and private companies to showcase their products, services, and programs and to meet with potential strategic partners. Networking events during the conference provided companies opportunities to meet private and institutional investors.
We talked with a number of companies and investors at the event – including some ex-NFL players turned investors. While the Super Bowl remained a hot topic, discussions quickly focused on business opportunities, financial reporting requirements and IPO opportunities. The overall mood of the conference was energetic (see pictures from the event below).
Attendees we spoke with talked about the cost burden of financial reporting and the rising costs of filing IPOs. It’s easy to see why this is a concern – costs can quickly add up with unanticipated overtime charges. At Edgar Agents, we understand that coordinating financial reporting requirements doesn’t always happen during traditional office hours – especially when you are rushing to meet SEC deadlines. Attendees had positive comments when they learned that Edgar Agents offered flat-rate pricing and custom pricing packages. We never charge for rush or overtime work. The rate we quote you is the rate you are billed.
If you are interested in learning more about Edgar Agents contact us today for a services quote. Or stop by and visit us at these upcoming conferences:
March 8-11, 2015 – Roth Conference in Dana Point, CA
April 12-14, 2015 – Growth Capital Expo in Las Vegas
However, this event was more than sun and sand – it was an opportunity for mid-market and emerging public and private companies to showcase their products, services, and programs and to meet with potential strategic partners. Networking events during the conference provided companies opportunities to meet private and institutional investors.
We talked with a number of companies and investors at the event – including some ex-NFL players turned investors. While the Super Bowl remained a hot topic, discussions quickly focused on business opportunities, financial reporting requirements and IPO opportunities. The overall mood of the conference was energetic (see pictures from the event below).
Attendees we spoke with talked about the cost burden of financial reporting and the rising costs of filing IPOs. It’s easy to see why this is a concern – costs can quickly add up with unanticipated overtime charges. At Edgar Agents, we understand that coordinating financial reporting requirements doesn’t always happen during traditional office hours – especially when you are rushing to meet SEC deadlines. Attendees had positive comments when they learned that Edgar Agents offered flat-rate pricing and custom pricing packages. We never charge for rush or overtime work. The rate we quote you is the rate you are billed.
If you are interested in learning more about Edgar Agents contact us today for a services quote. Or stop by and visit us at these upcoming conferences:
March 8-11, 2015 – Roth Conference in Dana Point, CA
April 12-14, 2015 – Growth Capital Expo in Las Vegas
And What About This Booming IPO Activity?
Could this be the age of IPOs? I think “yes.”
In 2014, there were 275 IPOs. We haven’t seen these kinds of numbers since the dot-com era. According to a Money Morning report (titled The Five Biggest 2015 IPOs to Watch), companies that IPOed in 2014 were on average more successful than their counterparts 10 years ago. New stocks have averaged a 13.1% jump from their offer prices this year. Over the previous 10 years, new stocks gained 9.8% on average, the report states.
And 2015 is off to a great start with extremely successful IPOs like Box Inc. and Shake Shack Inc., both valued in the billions on opening day. Box Inc. priced its shares at $14, above the expected range of $11 to $13, and trading opened at $20.20. The company was valued at $1.7 billion. Shares of gourmet hamburger chain Shake Shack Inc. soared 150 percent in their first few minutes of trading, valuing the company at nearly $2 billion.
Currently in the works are seven new IPOs which are expected to raise $9 billion this week alone. They are Inovalon Holdings (INOV), Sol-Wind Renewable Power, LP (SLWD), Great Ajax (AJX) Invitae (NVTA), Bellerophon Therapeutics (BLPH), AutoGenomics (AGMX) and Avenue Financial Holdings (AVNU). Other high profile companies expected to file for IPO in 2015 include Uber, Airbnb Inc. and GoPro. All this IPO activity is a great sign that the economy is growing and the financial markets are strong.
Any company that has been through an IPO knows there are a lot of factors to consider when you announce IPO plans – producing financials, filing with the SEC, meeting with investment banks, and communicating to potential investors. When I talk to companies considering an IPO, there is a growing concern from CFOs about the overall cost of an IPO, which can run into the hundred thousands.
For many companies, financial-printing bills are their third-largest expense, after lawyer and banker fees, according to an article in the Wall Street Journal. The WSJ article mentions how some major financial printers inflate their rates, sometimes by hundreds of thousands of dollars. With IPOs on the rise, it appears that some printers are looking to capitalize on this trend. However, this practice hurts the credibility of the entire financial printing industry.
At Edgar Agents, we do things differently. We offer flat rates that help keep costs down. The Edgar Agents IPO package consists of one price for printing the initial registration statement, amendments, correspondence filings and two print runs. With fixed fees and custom pricing packages (if required), IPOs can trust that the final bill will not have unexpected charges.
If your company or a company you work with is considering an IPO in 2015, you can trust Edgar Agents to keep IPO costs down while ensuring that the company is compliant and under budget. Call Edgar Agents today to find out more about our services and how our customized pricing packages can help you save money.
In 2014, there were 275 IPOs. We haven’t seen these kinds of numbers since the dot-com era. According to a Money Morning report (titled The Five Biggest 2015 IPOs to Watch), companies that IPOed in 2014 were on average more successful than their counterparts 10 years ago. New stocks have averaged a 13.1% jump from their offer prices this year. Over the previous 10 years, new stocks gained 9.8% on average, the report states.
And 2015 is off to a great start with extremely successful IPOs like Box Inc. and Shake Shack Inc., both valued in the billions on opening day. Box Inc. priced its shares at $14, above the expected range of $11 to $13, and trading opened at $20.20. The company was valued at $1.7 billion. Shares of gourmet hamburger chain Shake Shack Inc. soared 150 percent in their first few minutes of trading, valuing the company at nearly $2 billion.
Currently in the works are seven new IPOs which are expected to raise $9 billion this week alone. They are Inovalon Holdings (INOV), Sol-Wind Renewable Power, LP (SLWD), Great Ajax (AJX) Invitae (NVTA), Bellerophon Therapeutics (BLPH), AutoGenomics (AGMX) and Avenue Financial Holdings (AVNU). Other high profile companies expected to file for IPO in 2015 include Uber, Airbnb Inc. and GoPro. All this IPO activity is a great sign that the economy is growing and the financial markets are strong.
Any company that has been through an IPO knows there are a lot of factors to consider when you announce IPO plans – producing financials, filing with the SEC, meeting with investment banks, and communicating to potential investors. When I talk to companies considering an IPO, there is a growing concern from CFOs about the overall cost of an IPO, which can run into the hundred thousands.
For many companies, financial-printing bills are their third-largest expense, after lawyer and banker fees, according to an article in the Wall Street Journal. The WSJ article mentions how some major financial printers inflate their rates, sometimes by hundreds of thousands of dollars. With IPOs on the rise, it appears that some printers are looking to capitalize on this trend. However, this practice hurts the credibility of the entire financial printing industry.
At Edgar Agents, we do things differently. We offer flat rates that help keep costs down. The Edgar Agents IPO package consists of one price for printing the initial registration statement, amendments, correspondence filings and two print runs. With fixed fees and custom pricing packages (if required), IPOs can trust that the final bill will not have unexpected charges.
If your company or a company you work with is considering an IPO in 2015, you can trust Edgar Agents to keep IPO costs down while ensuring that the company is compliant and under budget. Call Edgar Agents today to find out more about our services and how our customized pricing packages can help you save money.
Who is Edgar Agents?
Working with a filing agent is all about trust. Public companies trust filing agents with their financial data. They trust the agent to format, convert and file the information with the SEC on-time and accurately. The first step to building trust with a filing agent is to understand who the agency is and how they work.
Companies that work with Edgar Agents know they can trust us with all their filing needs from EDGAR to XBRL to financial printing requirements. If you haven’t worked with Edgar Agents before, we have pulled together some commonly asked questions about the company.
Who is Edgar Agents?
For more than 15 years, Edgar Agents has been filing documents with SEC for public companies. From annual 10-Ks, quarterly 10-Qs to 8-Ks, Registration Statements and Section 16 filings, we guide customers through each step of the filing process by providing unparalleled customer service and accurate and prompt turn around times, all at an incomparably competitive price. Our team of filing experts is dedicated to helping public companies accurately communicate their financial data to investors and regulators through EDGAR and XBRL filings; financial printing and newswire services.
Do you offer more than EDGAR filing services?
Yes, we are a full service filing agent and can help with much more than just traditional EDGAR filings. Over the past five years we have greatly expanded our service offering to include XBRL conversions and tagging, IPO services, typesetting and financial printing.
How many filings does Edgar Agents perform?
Edgar Agents is one of the Top 10 most active full service SEC filing agents in the US and one of the Top 20 for all filing agents, law firms and transfer agents. In 2014, we handled 3,418 LIVE filings. Over the past two years we have consistently grown our filings by more than 20%, making us one of the top 5 fastest growing SEC filers. You can view the SEC’s Most Active Filing Agents list at www.secinfo.com/$/SEC/Agents.asp.
How many publicly traded companies do you work with?
We work with over 500 publicly traded companies on a regular basis. Our customers range from small and medium sized companies to large Fortune 100 companies. We have long-standing relationships with the top corporate law firms.
What is the company’s philosophy?
At Edgar Agents, we view trust, integrity and quality of service as our greatest asset. Our philosophy is to provide the best financial reporting solutions possible at minimal burden to the client. We are dedicated to providing our customers with the highest quality service and believe in partnering with our customers to help them meet all their financial reporting needs.
What sets Edgar Agents apart from other filing agents?
The Edgar Agents leadership team is comprised of experts in the industry who have specialty knowledge around EDGAR, XBRL and printing. Our team members have held positions at many of the larger filing agencies.
What sets Edgar Agents apart from other companies in this space is our commitment to customer service and our personalized approach to client needs. Our customers work with dedicated filing experts who create personalized SEC filing services to meet their specific requirements. As a result, customers quickly build a high-level of trust with Edgar Agents.
While many filers approach every SEC filing the same regardless of the company type or size, we understand that every business is unique. We treat all our customers – small and large – with the individual attention required to ensure that every SEC filing is processed correctly. We do not outsource our services, allowing our CPA experts to work with you on all your filings. For example, changes to the EDGAR or XBRL are taken over the phone and a proof is sent within minutes. A dedicated EDGAR account manager confirms receipt of your files within moments of receiving the email.
What is Edgar Agents pricing structure?
Edgar Agents prides itself in its transparent billing practices with clear flat rate pricing. Unlike others in the industry, we do not charge extra for rushed jobs or overnight and weekend jobs. For pricing regarding our specific services or to learn about our IPO pricing package, please contact info@edgaragents.com
#GetToKnowEdgarAgents Today! Follow us on Twitter @EdgarAgentsLLC.
Companies that work with Edgar Agents know they can trust us with all their filing needs from EDGAR to XBRL to financial printing requirements. If you haven’t worked with Edgar Agents before, we have pulled together some commonly asked questions about the company.
Who is Edgar Agents?
For more than 15 years, Edgar Agents has been filing documents with SEC for public companies. From annual 10-Ks, quarterly 10-Qs to 8-Ks, Registration Statements and Section 16 filings, we guide customers through each step of the filing process by providing unparalleled customer service and accurate and prompt turn around times, all at an incomparably competitive price. Our team of filing experts is dedicated to helping public companies accurately communicate their financial data to investors and regulators through EDGAR and XBRL filings; financial printing and newswire services.
Do you offer more than EDGAR filing services?
Yes, we are a full service filing agent and can help with much more than just traditional EDGAR filings. Over the past five years we have greatly expanded our service offering to include XBRL conversions and tagging, IPO services, typesetting and financial printing.
How many filings does Edgar Agents perform?
Edgar Agents is one of the Top 10 most active full service SEC filing agents in the US and one of the Top 20 for all filing agents, law firms and transfer agents. In 2014, we handled 3,418 LIVE filings. Over the past two years we have consistently grown our filings by more than 20%, making us one of the top 5 fastest growing SEC filers. You can view the SEC’s Most Active Filing Agents list at www.secinfo.com/$/SEC/Agents.asp.
How many publicly traded companies do you work with?
We work with over 500 publicly traded companies on a regular basis. Our customers range from small and medium sized companies to large Fortune 100 companies. We have long-standing relationships with the top corporate law firms.
What is the company’s philosophy?
At Edgar Agents, we view trust, integrity and quality of service as our greatest asset. Our philosophy is to provide the best financial reporting solutions possible at minimal burden to the client. We are dedicated to providing our customers with the highest quality service and believe in partnering with our customers to help them meet all their financial reporting needs.
What sets Edgar Agents apart from other filing agents?
The Edgar Agents leadership team is comprised of experts in the industry who have specialty knowledge around EDGAR, XBRL and printing. Our team members have held positions at many of the larger filing agencies.
What sets Edgar Agents apart from other companies in this space is our commitment to customer service and our personalized approach to client needs. Our customers work with dedicated filing experts who create personalized SEC filing services to meet their specific requirements. As a result, customers quickly build a high-level of trust with Edgar Agents.
While many filers approach every SEC filing the same regardless of the company type or size, we understand that every business is unique. We treat all our customers – small and large – with the individual attention required to ensure that every SEC filing is processed correctly. We do not outsource our services, allowing our CPA experts to work with you on all your filings. For example, changes to the EDGAR or XBRL are taken over the phone and a proof is sent within minutes. A dedicated EDGAR account manager confirms receipt of your files within moments of receiving the email.
What is Edgar Agents pricing structure?
Edgar Agents prides itself in its transparent billing practices with clear flat rate pricing. Unlike others in the industry, we do not charge extra for rushed jobs or overnight and weekend jobs. For pricing regarding our specific services or to learn about our IPO pricing package, please contact info@edgaragents.com
#GetToKnowEdgarAgents Today! Follow us on Twitter @EdgarAgentsLLC.
What happens if President Vetos Bill (H.R. 37)?
As the blizzard in the Northeastern U.S. winds down, a blizzard in Washington D.C. gains momentum. Too many opposing parties are in conflict over H.R. 37, now H. Res. 27, and each party holds a valid point. Nevertheless, the bill, which is now being considered in a Senate Committee, could eventually be vetoed by U.S. President Barack Obama and all will remain as it was.
“The bill would undermine the Dodd-Frank Wall Street Reform Act ‘while benefiting Wall Street and other narrow special interests,’” the President stated in an article in USA Today.
But in the meantime, opposing parties continue to debate their respective sides. Investors and financial analysts say that the SEC allows too many exceptions for public companies filing their financials and oppose a bill that will exempt companies with less than $250 million in revenues from filing their financials in XBRL. They argue that with more exceptions, the less data there is to compare, making for an inaccurate analysis of companies and certain markets. Let’s face it, complicated and sketchy data will scare investors from investing in a company. It makes one wonder if the extra costs to file in XBRL are not only worth the extra effort but essential to a company’s longevity? Companies will sometimes need investor funding to keep their operations going and that is less likely to happen without transparent data.
In another argument, the SEC advocates that the data in XBRL has helped the agency search for patterns of possible fraud or misreporting. This should be a good thing, no? Not so much for smaller companies because they claim that although XBRL may benefit investors, analysts and the SEC, the cost of XBRL is too high for a company trying to get its business up and running in the first five crucial years. However, this argument also does not hold much weight as reported in an earlier post because the average annual cost of XBRL is only $10, 000, and far less than that with some filing agents such as Edgar Agents.
As the argument goes back and forth between the different groups, the White House threat confirms XBRL is here to stay, at least for now. So, how do we move forward? Best bet is for everyone to start shopping for a filer that will work with your requirements and within your budget.
Shopping for a better filer might be the answer to cutting costs whether you are continuing with your XBRL operations or are an IPO just getting started. Be sure you are prepared with the proper tools and tips in order to find a filer that will customize your specific needs at a reasonable rate. Also, be sure to read our latest blog posts for questions to ask and tips to consider before shopping for a filer. Do not hesitate to call an Edgar Agent or visit www.edgaragents.com if you have specific questions or want to learn more about our services.
“The bill would undermine the Dodd-Frank Wall Street Reform Act ‘while benefiting Wall Street and other narrow special interests,’” the President stated in an article in USA Today.
But in the meantime, opposing parties continue to debate their respective sides. Investors and financial analysts say that the SEC allows too many exceptions for public companies filing their financials and oppose a bill that will exempt companies with less than $250 million in revenues from filing their financials in XBRL. They argue that with more exceptions, the less data there is to compare, making for an inaccurate analysis of companies and certain markets. Let’s face it, complicated and sketchy data will scare investors from investing in a company. It makes one wonder if the extra costs to file in XBRL are not only worth the extra effort but essential to a company’s longevity? Companies will sometimes need investor funding to keep their operations going and that is less likely to happen without transparent data.
In another argument, the SEC advocates that the data in XBRL has helped the agency search for patterns of possible fraud or misreporting. This should be a good thing, no? Not so much for smaller companies because they claim that although XBRL may benefit investors, analysts and the SEC, the cost of XBRL is too high for a company trying to get its business up and running in the first five crucial years. However, this argument also does not hold much weight as reported in an earlier post because the average annual cost of XBRL is only $10, 000, and far less than that with some filing agents such as Edgar Agents.
As the argument goes back and forth between the different groups, the White House threat confirms XBRL is here to stay, at least for now. So, how do we move forward? Best bet is for everyone to start shopping for a filer that will work with your requirements and within your budget.
Shopping for a better filer might be the answer to cutting costs whether you are continuing with your XBRL operations or are an IPO just getting started. Be sure you are prepared with the proper tools and tips in order to find a filer that will customize your specific needs at a reasonable rate. Also, be sure to read our latest blog posts for questions to ask and tips to consider before shopping for a filer. Do not hesitate to call an Edgar Agent or visit www.edgaragents.com if you have specific questions or want to learn more about our services.
Will XBRL Exemption Be Too Risky for Small Cap Companies?
In an earlier blog post, we discussed the cost burden of XBRL and the ongoing debate related to H.R 37. With the new resolution passed by the house last week, H. Res. 27, the Senate will now have an opportunity to vote on the XBRL mandate.
News outlets (see recent coverage in Accounting Today) report that the Senate is likely to pass the bill making small businesses with revenues less than $250 million exempt from the XBRL requirement. The intention is to reduce financial reporting costs burdens to help small businesses focus on innovation.
The current bill states that companies with revenues less than $250 million are exempt for 5 years from XBRL filings. While this might provide small businesses with relief now, what happens in 5 years?
Unless the matter is taken up again in 5 years, small companies will be expected to file both EDGAR and XBRL. Companies may find that revamping their XBRL operations in 5 years will be more costly than implementing procedures today.
Currently, the cost of XBRL conversions is less than $10,000 annually (“Financial Executive International survey” page 19). However, the effort and resources required for companies to get up to speed after five years could be double that. Several steps will be involved including training of internal staff to review the XBRL; integrating financials to flow within the XBRL system; and retagging financial notes with the latest GAAP taxonomies.
Retagging financial notes will likely be the most costly. As it stands now, SEC filers like Edgar Agents are able to seamlessly roll financials in from the last quarter so all the latest taxonomies and mandates apply. It would be time consuming if a filer stopped reporting in XBRL now then started up again in five years. They would need to basically start over from scratch. The final bill to incorporate XBRL could significantly exceed expectations if a company’s SEC filer charges extra fees for overtime hours.
If resources and costs remain the argument against XBRL, delaying the implementation may not be the answer. It’s true that the process of converting financial data to XBRL has advanced over the last few years and will continue to get easier (and more affordable) for companies. But, if companies need to reconvert their filings into XBRL after 5 years, companies could be faced with higher costs of implementation down the road.
At Edgar Agents, we help companies meet the XBRL requirements in a cost effective way. We guide companies through the process and offer specialized tools that make implementing XBRL easier, such as our XBRL widget. More importantly, we help companies adjust and meet new SEC requirements while improving transparency to investors.
While the debate continues, one thing is for sure – XBRL will continue to evolve and Edgar Agents will be there to help companies navigate it today and in the future.
News outlets (see recent coverage in Accounting Today) report that the Senate is likely to pass the bill making small businesses with revenues less than $250 million exempt from the XBRL requirement. The intention is to reduce financial reporting costs burdens to help small businesses focus on innovation.
The current bill states that companies with revenues less than $250 million are exempt for 5 years from XBRL filings. While this might provide small businesses with relief now, what happens in 5 years?
Unless the matter is taken up again in 5 years, small companies will be expected to file both EDGAR and XBRL. Companies may find that revamping their XBRL operations in 5 years will be more costly than implementing procedures today.
Currently, the cost of XBRL conversions is less than $10,000 annually (“Financial Executive International survey” page 19). However, the effort and resources required for companies to get up to speed after five years could be double that. Several steps will be involved including training of internal staff to review the XBRL; integrating financials to flow within the XBRL system; and retagging financial notes with the latest GAAP taxonomies.
Retagging financial notes will likely be the most costly. As it stands now, SEC filers like Edgar Agents are able to seamlessly roll financials in from the last quarter so all the latest taxonomies and mandates apply. It would be time consuming if a filer stopped reporting in XBRL now then started up again in five years. They would need to basically start over from scratch. The final bill to incorporate XBRL could significantly exceed expectations if a company’s SEC filer charges extra fees for overtime hours.
If resources and costs remain the argument against XBRL, delaying the implementation may not be the answer. It’s true that the process of converting financial data to XBRL has advanced over the last few years and will continue to get easier (and more affordable) for companies. But, if companies need to reconvert their filings into XBRL after 5 years, companies could be faced with higher costs of implementation down the road.
At Edgar Agents, we help companies meet the XBRL requirements in a cost effective way. We guide companies through the process and offer specialized tools that make implementing XBRL easier, such as our XBRL widget. More importantly, we help companies adjust and meet new SEC requirements while improving transparency to investors.
While the debate continues, one thing is for sure – XBRL will continue to evolve and Edgar Agents will be there to help companies navigate it today and in the future.
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