For every dollar in profit Jeffersonville Bancorp has made in the past couple years, it spent a dime on accountants, auditors and the like.
Warwick Valley Telephone's compliance costs have run into the millions of dollars, making regulatory expenses a critical factor as the company considers putting itself up for sale or buying out shareholders and going private.
Welcome to the world of Sarbanes-Oxley.
The accounting reform act was passed in 2002 in the aftermath of high-profile accounting scandals at huge companies like Enron and WorldCom. It's had the unintended consequence of crippling many smaller businesses.
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