XBRL simply refers to a file format that you use to submit financial information about your business to the SEC (Securities and Exchange Commission). To protect investor interests, it was expanded to eXtensible business reporting language.
Through XBRL conversion, the SEC makes all pertinent business information available in one place for people who are looking to invest. The bottom line is that the information in this format is intended for the general public. These are the top three reasons to seriously consider XBRL conversion.
Investors, regulators, economists, stock exchanges, financial companies, and the government can view the information you provide to the SEC. It helps to form opinions about your company. This could be either positive or negative depending on how you present your company.
Companies offering credible XBRL services have a solid understanding of GAAP. This is a set of commonly used accounting principles and taxonomies, which are dictionaries that are used to organize tags for XBRL tagging. This allows people to draw an analysis using descriptive information bundled in line items like reporting period, currency, etc.
Good XBRL conversion results in great visibility. This is an analyst's dream. Analysts don't need to spend hours searching for the information they seek. It takes just a few seconds to find specific details and tags data.
Great dialogue efficiency
This system makes it easy to search for your information, extract it, and download it from SEC filings. This makes it easy for your company to be analyzed and followed. Investors can also export the information in Excel sheets. This greatly increases investor visibility and can increase your chances of getting new capital.