XBRL has been mandated by the U.S. Securities and Exchange Commission and various other regulators, as the only required format for electronic reporting. There are many advantages to using this form of electronic reporting. It is an extremely interactive programming language that is used for data in order to disseminate reporting information for corporations both public and private. This is used to create defined data tags (much like barcodes) that helps to identify the structure and the content. As of 2012, all of these submittals must have these data tags.
Standard for Financial Reporting
For a number of years, momentum has been building primarily towards a single electronic/financial reporting standard which provides efficient analysis and retrieval of very specific financial information. The primary objectives of this system for financial reporting are to provide precise financial information, which is able to be delivered at a faster and much cheaper rate. It also supports businesses when it comes to investing and business decisions. It also makes companies more compatible throughout the entire industry when it comes down to working with other corporations.
Using XBRL provides companies with the following advantages and perks:
- Reduction of reporting
- Significant decrease in costs
- Improves data accuracy and timelines
- Increases company transparency
- Improves flexibility as well as accuracy
XBRL and Your Business
The primary idea behind XBRL is very simple. Instead of treating all of the financial information you receive as static test, internet page, or individual printed documents, XBRL provides a specific ID tag for each piece of data, whether it is textual or numeric. It can be read by a computer and allows this important information to be used on an interactive basis.
XBRL Tagging
Understanding the full concept of XBRL tagging is not your responsibility. There are XBRL filing services available who can help you to better understand the importance of XBRL and how it can benefit your business in the long run. Even though you do not have to fully understand the concept, it certainly does help you understand how it makes your company more efficient, accurate, and helps you decrease your overall costs. Most importantly, it makes you more transparent to your competitors, financial partners, and clients. This is the best way that you can build a long-term relationship with your clients and partners with absolutely nothing to hide. A filing service can certainly make things much easier for your business and its future.
If your company is seeking out XBRL filing services, then Colonial Stock Transfer Company, Inc can help. Visit their website to learn more about their services.
