Business Process Integration Blog # 3

Since you first heard the term XBRL (eXtensible Business Reporting Language) you have wondered if you should have it implemented into the business. So you asked me to learn more about XBRL, so now I am going to relay to you the information that I have learned about XBRL.

XBRL is an electronic language that has begun to revolutionize the way that business and financial data is being prepared and reported. It is quickly becoming the standardized channel of communication between businesses and through the use of the internet. Although it is a new process it already being put to practical use in many other countries and is continuously growing rapidly throughout the rest of the world.

There are many reasons why it would be a good idea; however, I will provide you with what I believe are the three most important reasons for the implementation and use of this system.
The first and the most important reason for the using XBRL is it allows us use the XBRL tags which allows an XBRL supported computer software to purely cutting costs and eliminating the laborious tasks of manual entry and re-entry. This software is can treat XBRL intelligently, meaning it can recognize the information in an XBRL document and then select, analyze, store and exchange the information with other computers which can then present the information in a variety of ways.

The second reason for using XBRL allows companies to cut costs drastically by streamlining the processes used for collecting and reporting the financial information. This allows financial advisors, analysts, etc. to receive, find, analyze, and compare data much more efficiently if it is in an XBRL format.

And the third reason for using XBRL is it enables producers and consumers of financial data to step away from costly manual processes, usually entailing time-consuming comparison, assembly, and re-entry of data. This allows the users of this data to concentrate most of their energy towards the analysis which is supported by the computer software which authenticates and manipulates the XBRL information.

If we were to begin using XBRL with our company we would first of all need to join XBRL International, which carries the most up-to-date version of XBRL. We would then have to have somebody who knows how to operate the software to come in and set it up on the companies’ computers. Then we would have to have that person in for one or two weeks to teach us how to use the XBRL software which will provide the most reliable information to our consumers.

Accountants do not have to stay up-to-date with XBRL standards as the use of XBRL does not enforce a standardization of financial reporting. The XBRL language is flexible which is intended to support all aspects of financial reporting in different countries and industries. This allows the XBRL to meet certain business requirements no matter what type or level of the organization uses the information