Today, XBRL plays an important role in the generation and use of financial information.
As an XML-based standard, XBRL requires computer platforms, software applications, and accounting standards.
However, when it comes to selecting the best software from multiple options, you may get confused. Not anymore, choosing the right XBRL reporting software can be easier when you know the seven aspects below.
It’s important to highlight the best features of XBRL software so that you can look for these features while choosing an appropriate XBRL technology solution. Here are some essential features that can let you operate all the XBRL tasks easily.
#1 Easy Integration of Source Data
As an organization, you can source data from a wide variety of enterprise applications. Now, the data sources you find vary in formats such as databases, spreadsheets, or XML files. Therefore, you should get a solution or software that easily integrates these data. Secondly, it needs to provide automatic sourcing of data and user-initiated sourcing of data.
#2 Tagging of Information
To master tagging, you need to have extensive knowledge of your business and information requirements. In XBRL, mapping files are used for the conversion and instance document generation process. The process requires further care as mapping determines the quality of the submitted data. If you rely on software instead of manual tagging, the software needs to provide an intelligent tagging feature.
#3 Smart Search of Taxonomy Element
In tagging, the source data and taxonomy are deeply associated. There are approximately 5,030 elements in ESMA Taxonomy and more than 17,000 elements in US GAAP taxonomy. Hence, the process of finding the most appropriate XBRL element for tagging can be difficult for you. You can look for software that offers you an easy and context-based search facility.
There are other important features related to tagging such as mapping management, source document tagging, etc.
#4 Complex Data Management
In financial reports, both financial data and narratives remain present. Now, most of the information comes in a tabular manner or formatted content. It is done mostly for better presentation and analysis.
Therefore, your software should be capable of tagging the formatted content in the source document. Secondly, it should also maintain the same formatting in the instance document.
#5 XBRL Taxonomy Features
Taxonomy vision management is a vital aspect of XBRL reporting software. It should be capable of rolling the taxonomies forward from period to period. Customization of Taxonomy is another feature that your software should have.
Every company is exclusive and requires customization in XBRL services. The software should allow you to create and record a new element when a concept is not present in the taxonomy.
Taxonomy published by Regulator is subject to updates. Software should have the ability to quickly move from the older version to the newer version of the taxonomy.
#6 Comprehensive Validation
The rules of XBRL are constantly changing and therefore, your software should come with comprehensive validation. It should be capable of providing an integrated process of validating all the criteria.
There should be validation at every stage of the process apart from a final validation. Also, it needs to provide a user-friendly report for resolving errors. Larger organizations often require a larger set of validation and business rules. For them, this feature is mandatory.
#7 Instance Previewer
Your XBRL software needs to have an easy instance previewer. This feature helps you to go through the report before creating an instance document or submitting it. As a result, you can get a feel of how the information tagged is looking in your instance document.
Now that you know the seven essential features of an XBRL reporting software, go ahead and get the most appropriate software for your business. If you are looking for a company to provide FERC XBRL software and other smart solutions at an affordable cost, you can feel free to get in touch with us.
We, Ez-XBRL, provide all the essential tools and technologies for creating accurate XBRL documents. We are recognized as one of the top companies providing XBRL consultation and solutions in the USA.
XBRL 2.1 specifications and complies with the XBRL conformance suite are supported by our services and products.
Our solutions are the most updated ones that comprise the features mentioned above. So, why wait anymore?
Call us today to learn more about our products and services.