Understanding XBRL Filing

Understanding XBRL Filing

 

XBRL filing is a mandatory part of life for many businesses. XBRL is an XML based language that allows computers and software to fully read financial data. This gives a business the ability to file their financial reports and data in a way that it is compatible with virtually everyone. Without XBRL, most financial data ends up being no more than a simple block of text. XBRL lets the data have meaning, show relationship to other parts of data and be completely understand by machines. In order to file XBRL financial statements, one has to fully understand the reasoning and process involved.

Why Worry With XBRL Filing?

For many the first and biggest question is why? Is XBRL filing really necessary? The simple answer is that it is. The SEC has regulated the filing of financial reports for many types of business and had made it where filing those reports with XBRL is a requirement. That means that business owners have two choices. They can learn about this process and handle it themselves, or they contact a professional that knows how this works.

Are There Guidelines for XBRL Filing?

XBRL filing has to be done a specific way. There are rules to follow and guidelines that have to be met. The best way to ensure that the filing is done correctly is to familiarize oneself with the SEC rules and guidelines and the language itself. Oftentimes it is easier for a business to hire someone that is already familiar with these details as it can be done quickly and effectively.

What Must One Know About XBRL Filing?

The biggest thing that will ensure success with XBRL filing is understanding the language and components of the report. There must be an XBRL instance included in the document that tells the facts that are being reported. There must also be taxonomies that help define the facts and tell what they mean and how they might be related to other facts. These two components are vital if the report is to be read accurately by computers and software.

Businesses that are required to participate in XBRL filing will find that knowing the laws, rules, guidelines and language is the key to making sure it is successful. This can take some research as well as simply trying things out to see how it works. If that seems too time consuming, then one can easily find a professional that understands what is needed and can accomplish the task quickly. The most important thing that matters is that the filing is done correctly and in a timely manner. The fact that it is mandatory means that one cannot simply ignore that the filing must be completed.

Ensure that your XBRL filing is done quickly and correctly. Hire a professional that understands the language, rules and how to properly file XBRL reports. Visit Colonial Stock at colonialstock.com to find the professional that you need for your XBRL filing.

 

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