Today’s publicly-traded companies have more choices than ever when it comes to selecting an XBRL provider. For better or worse, new financial reporting companies seem to be setting up shop on a daily basis. A Google search for “XBRL software” churns out nearly 350,000 results. So, how do you filter through this clutter and noise to find an XBRL provider that will meet your needs?
There are a number of key differentiators in the myriad of XBRL technology companies, but I’ll focus on one of the most critical factors in this blog post – support.
XBRL financial reporting is in its infancy; therefore true experts are few and far between. There are a handful of XBRL companies that have earned stripes through years of experience coupled with significant R&D investment. These pioneers and early adopters of XBRL have, for the most part, spent time building their troops. The best of this group are staffed with teams of CPAs, accountants, subject matter experts (SMEs), XBRL techs and software engineers. These are the people you need to learn from. This is the collective know-how you want from the team working on your behalf. And should something go wrong in the 11th hour of your filing, you want to talk immediately with someone in this group who is very familiar with your data.
Competition is generally healthy for any marketplace, but newer companies sometimes fall short because they don’t know what they don’t know. Staffing and workflow synching result from best guesses, and client work can suffer, especially in deadline situations. Sales reps are more focused on numbers than service, and IT professionals outnumber financial experts in many XBRL companies. Worse yet, you don’t want to find yourself talking with a recent Computer Science grad on another continent when you have a taxonomy question.
It is crucial that you understand exactly who “has your back” before signing a contract that locks you into a relationship with a company that isn’t properly staffed to get you through an SEC filing on your schedule. Ask very specific questions about support:
- Can someone there help with tagging questions specific to my industry?
- Where is the help/support team located precisely?
- What are support hours?
- Who will be in charge of my filing?
- Who will be available to answer software questions?
As I’ve said before, you should approach the XBRL selection process with the diligence you would use to find a physician. There are thousands of doctors out there who can perform an annual physical exam for you, no problem. But you want someone who will proactively steer you in the right direction before there’s a problem, and someone who is experienced when challenges occur.
SEC financial reporting is serious business and there is much at stake, including severe consequences for errors and missteps. Be sure to find out everything you can about an XBRL provider’s support team before trusting them with such a critical piece of your business.
Related Posts:
Critical Questions to Ask When Choosing an XBRL Provider: Part Two – Style vs. Substance
Critical Questions to Ask When Choosing an XBRL Provider: Part Three – Software Demos
Tags: due diligence, support, XBRL
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