Providing precise and reliable data at a substantial pace, XBRL has been in the limelight for quite a time. But that is not all. There are few potholes where extensible business reporting language fails to deliver resulting in data inconsistency and data comparison issues. We will go through these pitfalls in detail before discussing how to tackle them.
Security and Exchange Commission strictly monitors and traces incorrect filing of data. Since outsourced XBRL services do have errors, this data cannot rely heavily on; this can pave way for certain mishaps. SEC follows a zero-tolerance policy towards erroneous filings and that is quite obvious.
2) Final validation after review process
This step is really challenging because there has to be a dedicated team to monitor any and all activities. It requires considerable amount of time and patience and needs very careful monitoring. It has to be reviewed first to make sure that the entire editing works are incorporated successfully, Most of the professional companies have a separate team dedicated to do the job.
3) Being a master of XBRL
The companies you hire must be well adept to handle EDGAR and XBRL process. The professionals with them should have thorough knowledge of mapping criteria and tagging. Detailed footnote tagging has to be taken special care of by all possible means. They must also have a good idea of the US GAAP financial reporting taxonomy.
4) Turn-around time and accessibility
Final reports should be done in advance to make sure that all the filings reach before their deadline without fail and every single time. There has to be a timing for merging the changes which depend heavily on the reporting personnel of the team.
5) XBRL features and downtime
Since financial reports require last-minute changes any downtime will severely affect the performance. Both EDGAR and XBRL processes require to stand hard in order to process the given data in a given time frame. As usual, there will be huge amount of pressure due to resource constraints which have to be dealt with properly.
There are more than a few companies that claim to provide excellent XBRL conversion services. It is advised to do an assessment of the various XBRL solution providers in India before zeroing in on one of them. The obvious reason is that, not all those who claim to be the best perform as per the standards.