The contribution of Small and Medium Enterprises (SMEs) to the economy is large. Having great potential and scope to grow, they are the businesses that are the engine for the future. However, they have challenges to grow from small companies to medium companies and beyond.
There’s a forward looking saying “that all companies will become technology companies”, which is more true now then ever. In this article we want to show one technological solution that can help SMEs reach their goals. Continue reading to learn more about XBRL and its advantages.
What is XBRL?
Extensible Business Reporting Language (XBRL) is a markup language that promotes the electronic communication of business and financial data. By providing major benefits in preparing, analyzing, and communicating business data, it is revolutionizing business reporting worldwide.
XBRL helps all types of businesses in saving costs and improving efficiency in handling business and financial data. Being extensible and flexible, it can cater to a wide variety of different requirements. The solution benefits all participants in the supply chain of financial information; they can be preparers, transmitters, or users of business information.
Features of XBRL
XBRL enables the creation of taxonomies that are reusable, authoritative definitions. They capture the meaning of all the terms in a business report and the relationship between them.
Testable Business Rules
XBRL allows the creation of testable business rules constraining what can be reported. These rules stop the transfer of poor-quality information and create value-added information based on the data provided.
XBRL allows the preparation of concept definitions in as many languages as required. Thus it enables displaying a range of reports in various languages without any additional work.
Strong Software Support
A wide range of software ranging from large to small vendors supports XBRL; thus, a wide range of stakeholders can work with the standard.
Advantages of XBRL for SMEs
The following advantages of adapting XBRL helps SMEs become a top performer.
When the processes get automated, SMEs can save their time and money and utilize it for other purposes.
Data transparency plays a crucial role in the various processes carried out in SMEs. Since the information is readily available for everyone using the system at any time, it helps improve efficiency.
Cost-cutting is a challenging task for every business, and when it comes to SMEs, it’s highly crucial. Adapting to XBRL automates different processes and helps improve efficiency. Thus it ultimately results in a reduction in expenses.
With multi-lingual support and automation of processes, XBRL helps SMEs improve their speed and further their performance. Since the processes get completed faster with XBRL, it eventually helps SMEs to become top performers.
With the testable business rules, XBRL stops processing poor-quality information and promotes value-added information. Apart from this, due to the automation of the process, the errors are also minimized, and thus reliable information is delivered. In this way, SMEs can become top performers by adapting to XBRL, delivering high reliability.
Easy Analysis, Transformation, and Comparison of Data
Analyzing, transforming, and comparing the fundamental data received is quite difficult and time-taking. But, when SMEs adapt to XBRL, it facilitates easy data analysis, transformation, and comparison. Thus it helps deliver reliable information and improved performance for SMEs.
Benefit for Stakeholders
SMEs can level up their management processes and internal data collection by implementing XBRL. Availability of reliable information and analytical insights help in making well-informed decisions.
Reduced Need for Manual Data Entry
By reducing a business’ reliance on manual input and review processes, XBRL helps save time and minimizes data entry errors, ensuring better performance for SMEs.
Reporting, Compliance, and Audit
XBRL enables efficient financial reporting and promotes easier regulatory compliance. It also reduces audit costs and financial reporting costs while facilitating continuous auditing. This contributes to improved overall performance for SMEs.
Contact us today at semansys.com if there’s anything we can do to help you with you business reporting needs.