Free Pricing | JCPenney Coupons | Pizza Hut Coupons | Home Depot Coupons
Compliance efforts come with big accounting bills

Compliance efforts come with big accounting bills

by Rick Turoczy on October 4, 2004

Paul Shipman, the chief executive officer of Redhook Ale Brewery, would like to focus on making money for his Woodinville company. He’s ramping up a new marketing and production partnership with an Oregon brewery, contending with increased freight costs and facing tight competition from other breweries.

Yet before he can devote his money and time to those concerns, there are tough new accounting standards under the Sarbanes-Oxley Act his company has to meet.

The brewery expects to swallow $500,000 in Sarbanes-Oxley related accounting expenses this year and an additional $250,000 in 2005. Shipman wouldn’t mind if he thought the spending would help his business, which lost $1.8 million on sales of $38.7 million last year, but he doesn’t believe it will.

“Sarbanes is a mess,” said Shipman, who this year added two accountants to his nine-member accounting department to handle the new requirements. “I don’t expect it to add to the accuracy or the quality of disclosure — it only adds costs.”

Compliance efforts come with big accounting bills

Leave a Comment

Previous post:

Next post: