Accountants are always looking for ways to automate, streamline, gain efficiency, and do more with less. Adding XBRL to the game doesn’t change this tendency-the trend so far has been to outsource the XBRL function. Compliance, though, can’t be outsourced. The review process becomes more critical and time consuming with this additional requirement, even if a service provider is hired on to produce our filings. The notion that a third party can provide a “one stop shop” for our SEC filing work has created a false sense of security-no matter who you choose, you will have to review both the HTML and XBRL files.
There is an impression in the market that once a source document is handed off to a printer, for instance, any changes to that document will be made in one source, both the HTML and the XBRL, alleviating the need to review two separate sets. While you only need to make one phone call to communicate a change, these changes are typically made by two separate departments, using separate software in a different file. Your thorough review must include both, every time, in order to avoid the possibility of inconsistencies.
The bigger issue here, though, is the archaic method in which finance professionals are asked to produce documents during the financial close and reporting phase. 10-Qs and 10-Ks are created in non-integrated Microsoft Office documents, changes are always manual, and there really is no version control for edits and comments across departments. The truth is that this hasn’t been the best option- it’s been the only option. The times are changing and exciting developments have been made in order to streamline the process. We can now look to partner with a provider who can offer:
- Document creation and management- automate the roll forward quarter to quarter by updating data from the ERP/GL system directly into your final document; ability to change one specific tagged item and automatically update the same item everywhere it is referenced in the document; ability to review and analyze both our public and non public data against peers prior to filing.
- Document content management- maintain a single source with customized workflow rules and security levels; version control and complete audit trail of changes; centralized reviewer notes and comments.
- Export to XBRL and Edgarized HTML from one source- a one stop shop is no longer a myth, it’s a reality.
