subject: Getting Xbrl Conversion Done The First Time? [print this page] XBRL stands for eXtensive Business Reporting Language. It is nothing but a file format in which financial data of your company should be filed with the Securities and Exchange Commission. This data is then made available to the general public. SEC is a government body set up to protect investor interests and by making this information available to the general public; informed decisions can be made. XBRL is basically a file format which allows all this data to be presented and stored electronic ally. Although this sounds like an easy task, it is not all that simple.
Heres why XBRL should be treated seriously
XBRL conversion is done through software which laymen cannot operate. It combines programming knowledge with accounts to produce a clear and faultless electronic rendition of your financial data. Hence if you wish to create a good impression among investors and others, it is important that you put some thought into this. Experts say that good XBRL conversion should be treated as a onetime investment because having it done all over again could result in double the cost. So if you are looking to get good XBRL services, you might want to consider the following points.
1.Look for a company that has a team of programmers, accountants and engineers who are available to answer your queries should you need them. You dont want to take up XBRL services with a company that has a rookie team.
2.Be specific of the turnaround time before you assign this task to a provider. Dont allow for delays and dont assign the task if the provider demands too many days. This is often a sigh of inexperience.
3.Be sure to be in the loop all through the XBRL process. See to it that the company has a support team to answer your queries.
4.Take the upper hand and see to it that you get the best out of the company. Dont let them call the shots. Often it so happens that the team will give you only their bare minimum unless pushed.
5.Talk to the accountants on the team. Be clear on what you want to present. It is also recommended that you talk to the accountants on the team before you sign up for XBRL services with them. If they sound inexperienced, then it is a good idea to go for the next choice of company.
Setting up an XBRL team in house is not a wise idea unless you have the investment for it. The best thing to do is to assign this task to a good XBRL services provider. But be picky about your choice. If the provider has a website, visit it and learn as much as you can about the place. Remember that it is your reputation on the line here.
