XBRL financial reporting can be applied to a wide range of financial and business applications. It can be used to handle:
- Internal and external financial reporting
- Exchange of information with a variety of regulators, including financial and tax authorities, governments and central banks
- Credit risk assessments
- Loan report and application filings
- Standardized accounting literature provided by authoritative bodies
Benefits of using XBRL
Among the many benefits of using XBRL:
- Automation: Organizations and entities that produce financial and business reports can automate the data collection process. For example, data from various company divisions and different accounting systems can be put together quickly and efficiently by using XBRL.
- Streamline reports: Those who serve the financial management, information technology and auditing sectors will be able to streamline their reports and will be able to more precisely publish and direct financial information to regulators, investors, lenders and analysts.
- Transparency: XBRL improves the efficiency of capital markets and helps analysts find relevant facts quickly and easily.
- Protect public interest: XBRL allows those in the CPA profession to fulfill its primary mission; that is, to protect the public by improving on investor access capabilities and increasing analyst coverage of small and large enterprises.
- Paperless system: XBRL helps create paperless systems and reporting, making it an environmentally friendly option.
Essentially, a financial reporting system that is XBRL-based will cut costs, increase productivity and efficiency, and adhere to industry standards. Many vendors are adapting to this system, making it the preferred choice for many organizations.
While XBRL may be a fairly new concept, it is one that is becoming widely accepted among both accounting professionals and regulatory bodies. It is among the few systems that provides a streamlined process, accountability and increased function. As it gains in popularity, newer versions and even better options are sure to emerge. Visit Colonial Stock Transfer Company, Inc.
