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Friday, January 28, 2005

XBRL and Business

By using XBRL, companies and other producers of financial data and business reports can automate the processes of data collection. For example, data from different company divisions with different accounting systems can be assembled quickly, cheaply and efficiently if the sources of information have been upgraded to using XBRL. Once data is gathered in XBRL, different types of reports using varying subsets of the data can be produced with minimum effort. A company finance division, for example, could quickly and reliably generate internal management reports, financial statements for publication, tax and other regulatory filings, as well as credit reports for lenders.

Small businesses can benefit alongside large ones by standardising and simplifying their assembly and filing of information to the authorities.

Users of data which is received electronically in XBRL can automate its handling, cutting out time-consuming and costly collation and re-entry of information. Software can also immediately validate the data, highlighting errors and gaps which can immediately be addressed. It can also help in analysing, selecting, and processing the data for re-use. Human effort can switch to higher, more value-added aspects of analysis, review, reporting and decision-making. In this way, investment analysts can save effort, greatly simplify the selection and comparison of data, and deepen their company analysis.

Such type of standard XML format for businesses can be boon to the industry mainly when it comes to communicating the data with some alien application.

3 comments:

adarsh said...

kya yar.. all ur blogs are too techincal..

Nehal Shah said...

Thanks adarsh for visiting my blog. Though I am not that technical geek but these days I am into lot of technical stuff so u know.

You can see some of my older blogs and they are not technical at all.

data entry home employment said...

Well done on a nice blog nehal. I was searching for information on data entry jobs at home and ran across your post XBRL and Business - not exactly what I was looking for related to data entry jobs at home but a very interesting read all the same!