The Singing CPA does it again with, "Hey There, Bob Pozen (Too Much Complexity in SEC Reporting)."
And as if you didn't see this tie-in coming, how can you reduce the complexity of your SEC reporting requirements and streamline your entire process in ways not previously available to financial reporting professionals? With WebFilings' revolutionary SEC reporting solution, of course!
SEC Reporting: When being "satisfied" is just not good enough
Posted by Kevin Hachey | WebFilings Regional Sales Director | May 12, 2011
Let me ask you a question: How did you get to work today? Was it by horse and buggy? Because I bet before cars were invented people who traveled using a horse and buggy were “satisfied” with that means of travel. What the heck is an “automobile,” anyway? No thanks. My horse and buggy are just “fine.” Now please remove me from your list.
To wit, I spend each and every work day talking with people just like you about the SEC reporting revolution that is WebFilings. Many people are intrigued, even skeptical. But that curiosity - of those open-minded enough to entertain a new paradigm of thinking - most often leads to a demonstration of the application in action, which is really just the first step in being won over by a solution many SEC professionals have always dreamed of – they just never imagined it to be a reality...or at least a reality right now.
Sadly, the remaining population simply say, “We’re satisfied with our current vendor.” Or, “No thanks, we’re fine.” Click.
To that I say, imagine if Humphry Davy, Joseph Swan, and Thomas Edison (three contributors to the first light bulbs) were “satisfied” with simply lighting candles to see in the dark?
And what if the Wright Brothers were just “satisfied” with the aforementioned automobile getting them from A to B – where would we be without airplanes?
Finally, consider the world at this moment if Steve Jobs was just “satisfied” with Sony disc players and flip cell phones – how different would yours or your child’s life be without iPods and iPhones leading the charge in music and mobile innovation?
I’ve been in sales long enough to understand and appreciate the auto-response reflex people have when interrupted by a sales call. “I’m satisfied.” “Things are fine.” “Now buzz off, please.” I get it. I do.
But even for people involved in accounting and external reporting, it is not enough to just be “satisfied” when that next great innovation is at your doorstep wrapped in a warm blanket – the proverbial gift horse, if you will.
In all areas of business, innovation is an absolute must. And it is not just for product developers, code writers, or marketing guys. It is required of everyone, even accountants. If you’re not finding innovative ways to improve the efficiencies of your day-to-day tasks and responsibilities – no matter how mundane they may be – then you are falling behind those who already are. Beyond your peers who have already embraced innovation for their financial reporting, let’s also not forget that there are thousands of college seniors writing thesis papers right now on the intricacies of XBRL. If you’re not ready to innovate, I guarantee some of those soon-to-be grads will be.
The good news for you, however, is that WebFilings has made it easy for you to be innovative beyond your wildest dreams, without having to actually innovate anything. Or go back to college.
You just have to finally come to terms with the fact that you aren’t actually satisfied at all. And then let WebFilings do the rest.
The financial printers and bolt-on software providers have had their day in the sun as that big ole' honking box TV. It's now time you think about that new flat screen....with all-in-one remote and all the bells and whistles you can shake a stick at.
BusinessFinanceMag.com: 10 XBRL Myths Exploded
Written by Brad J. Monterio | Posted on BusinesFinanceMag.com on May 3, 2011
In the 11 years since I began working with the financial data standard that eventually became XBRL (eXtensible business reporting language), I've traveled a road filled with challenges, obstacles, and diversions. But the global XBRL community has stayed the course and persevered.
XBRL is a global, freely available, open data standard format that's used for the electronic transmission of financial and nonfinancial information within organizations and to external users. It's a language that bridges the gap between business systems.
And nowadays, it's everywhere.
XBRL's Expanding Sphere of Influence
In numerous countries, including the United States, China, Japan, India, the United Kingdom, and Germany, XBRL has either been mandated by one or more regulatory or government agencies for various types of external reporting (for example, tax or primary financials) or is currently in use for voluntary programs. Dozens more countries are considering XBRL for various purposes.
Several million companies, both privately held and listed, are already using XBRL to meet regulatory mandates, including tax and financial statement filings. Governments are increasingly integrating XBRL across their agencies to streamline reporting and information-gathering processes for businesses and the public, reducing compliance burdens.
XBRL is being used, or planned for use, with many asset classes, including mutual funds, asset-backed securities, and derivatives. Bonds and annuities may be next.
It's also being used (voluntarily at the moment) or considered in areas such as proxy practices; corporate social responsibility reporting; environmental, social and governance (ESG) practices; and integrated reporting (the reporting of combined financial and nonfinancial information).
Myths and Misperceptions
Throughout XBRL's journey to global usage, myths about the standard have cropped up along the way. Here are 10 misperceptions that may be blocking your company's ability to get the most from this crucial management tool.
1. XBRL is just one more compliance burden imposed on my organization.
While it's true that many companies now must comply with XBRL requirements for external reporting, all types of organizations can gain significant efficiencies by using the standard, including:
* Streamlined information gathering, analysis, and reporting (internal and external)
* More accurate, clean, reliable, reusable data
* Reduced information processing costs
* More informed management decision-making
* Improved communication within the organization about performance and fundamentals
* Better-integrated cross-functional teams and improved collaboration (because XBRL breaks down information silos)
* Improved transparency and, as a result, better risk management
* A reduction in the time that managers spend on gathering historical information -- which means that more time is available for value-added tasks such as forecasting, planning, and performance measurement
* Enhanced ability to "tell your story" to analysts and bankers.
2. XBRL is only for publicly listed and/ or large companies.
XBRL provides significant benefits for, and is currently being used by, both listed and privately held companies. Privately held firms far outnumber listed organizations around the world, and governments are focusing on delivering the benefits of XBRL for all enterprises.
Millions of small to medium businesses across Europe, Australia, and parts of Asia must meet XBRL tax filing requirements. The increasing use of XBRL by government agencies for purposes such as business licensing and grants directly impacts smaller companies. Charities and not-for-profit organizations also have XBRL requirements in some countries (for example, the United Kingdom) for taxation purposes.
3. XBRL is only for financial reporting.
While the initial focus was on the use of XBRL for financial reporting -- both internally to management and externally to regulatory agencies, analysts, and investors -- XBRL today is increasingly used for nonfinancial reporting.
Read full article here >>
In the 11 years since I began working with the financial data standard that eventually became XBRL (eXtensible business reporting language), I've traveled a road filled with challenges, obstacles, and diversions. But the global XBRL community has stayed the course and persevered.
XBRL is a global, freely available, open data standard format that's used for the electronic transmission of financial and nonfinancial information within organizations and to external users. It's a language that bridges the gap between business systems.
And nowadays, it's everywhere.
XBRL's Expanding Sphere of Influence
In numerous countries, including the United States, China, Japan, India, the United Kingdom, and Germany, XBRL has either been mandated by one or more regulatory or government agencies for various types of external reporting (for example, tax or primary financials) or is currently in use for voluntary programs. Dozens more countries are considering XBRL for various purposes.
Several million companies, both privately held and listed, are already using XBRL to meet regulatory mandates, including tax and financial statement filings. Governments are increasingly integrating XBRL across their agencies to streamline reporting and information-gathering processes for businesses and the public, reducing compliance burdens.
XBRL is being used, or planned for use, with many asset classes, including mutual funds, asset-backed securities, and derivatives. Bonds and annuities may be next.
It's also being used (voluntarily at the moment) or considered in areas such as proxy practices; corporate social responsibility reporting; environmental, social and governance (ESG) practices; and integrated reporting (the reporting of combined financial and nonfinancial information).
Myths and Misperceptions
Throughout XBRL's journey to global usage, myths about the standard have cropped up along the way. Here are 10 misperceptions that may be blocking your company's ability to get the most from this crucial management tool.
1. XBRL is just one more compliance burden imposed on my organization.
While it's true that many companies now must comply with XBRL requirements for external reporting, all types of organizations can gain significant efficiencies by using the standard, including:
* Streamlined information gathering, analysis, and reporting (internal and external)
* More accurate, clean, reliable, reusable data
* Reduced information processing costs
* More informed management decision-making
* Improved communication within the organization about performance and fundamentals
* Better-integrated cross-functional teams and improved collaboration (because XBRL breaks down information silos)
* Improved transparency and, as a result, better risk management
* A reduction in the time that managers spend on gathering historical information -- which means that more time is available for value-added tasks such as forecasting, planning, and performance measurement
* Enhanced ability to "tell your story" to analysts and bankers.
2. XBRL is only for publicly listed and/ or large companies.
XBRL provides significant benefits for, and is currently being used by, both listed and privately held companies. Privately held firms far outnumber listed organizations around the world, and governments are focusing on delivering the benefits of XBRL for all enterprises.
Millions of small to medium businesses across Europe, Australia, and parts of Asia must meet XBRL tax filing requirements. The increasing use of XBRL by government agencies for purposes such as business licensing and grants directly impacts smaller companies. Charities and not-for-profit organizations also have XBRL requirements in some countries (for example, the United Kingdom) for taxation purposes.
3. XBRL is only for financial reporting.
While the initial focus was on the use of XBRL for financial reporting -- both internally to management and externally to regulatory agencies, analysts, and investors -- XBRL today is increasingly used for nonfinancial reporting.
Read full article here >>
EAT. PRAY. STREAMLINE. (Wait...what?)
Posted by Kevin Hachey | WebFilings Regional Sales Director | March 26, 2011
As many good husbands do, I know my place in life - my role. There is a give and a take, a yin and a yang, and the most functional of marriages understand this, and execute it without issue.
This is why I enjoy the occasional night out with the fellas, and my wife the routine “mani and pedi” with the girls. I own Sundays during football season, and in return I go apple picking and hang Christmas lights without debate.
It is also why my wife will sometimes endure a random celluloid featuring the venerable Will Farrell, and why I will repay her by silently gritting my teeth through Julia Robert’s latest offering. And that, right there, is where this tale begins...
Two nights ago, kids sound asleep, my wife stumbled upon “EAT PRAY LOVE” in our cable provider’s On Demand menu, and requested that I join her for the viewing. If unfamiliar, as I was, EPL is an inspirational drama based on Elizabeth (Liz) Gilbert's best-selling memoir. Liz, played by Julia Roberts, is a woman who, on the surface, has it all - a career, a husband, and a new home. However, she realizes that she no longer has a thirst for life. So after a bitter divorce, she decides to journey overseas to Italy, India, and Indonesia to try and rediscover the true meaning of herself, and of life.
Surprisingly, this film held my attention, and I found it both well-written and heart-felt. And it is jam-packed with quotes that will make you pause and search for greater meaning of your own existence.
Among them was the following narrative by the story’s main character:
"I remember an old catholic joke about a man who spent his whole life going to a church every day and prayed to the statue of a great saint, begging, ‘Please, please, please, let me win the lottery.’ Finally, the exasperated statue comes to life and looks down at the begging man and says, ‘My son, please, please, please, buy a ticket.’ So now I get the joke, and I bought three tickets."
Interestingly enough, when I heard this quote in the movie I instantly thought of many of the day-to-day conversations I have with prospective customers here at WebFilings, and how similar in context they all are. And with good reason. It may sound a little crazy – a little zany and kooky, I know – but there is an undeniable truth to it. You ready? Well here goes:
If you want to actually improve your external reporting process – like, streamline it, make it more efficient, reduce your costs, reduce your risk, reduce your stress – then you have to, ya know, actually do something about it!
I know, I know, it’s definitely a moon-bat concept – something straight out of the X-Files or something – but unfortunately it is true. Yes, people, if you want to improve your SEC reporting process then you have to take action to make it better and not just pray to the statue of a great saint.
And to be clear, tossing your responsibilities over the fence to an already overwhelmed and unprepared Financial Printer is not improving your process. If anything, it is making it worse. It is sacrificing control, increasing risk, getting in the back of the proverbial deli line on a Sunday afternoon, and asking someone else to represent your company’s accounting for you. Not good. Bad. Their messaging might be that it is easier for you to sit back, relax, put your feet up, draw yourself a Calgon bath, and let them wash your sorrows away. And to that I say, good for you, Financial Printers, your marketing spin is working wonders (I mean, their marketing guys get paid too, right?). But deep down, I think we all know that, at the end of the day, all it really is is spin.
Bolt-on software for EDGAR or XBRL? Sure, I guess that solves a single problem, but it doesn’t really improve your process as a whole, does it? By comparison, if you put a spoiler on your 1970 AMC Gremlin to improve the aerodynamics does it make the car function any better overall? Of course not. Bolt-ons are band-aids, nothing more, over a wound that will never heal. Eventually you'll need to peel it off and put on a new one. Bolt-ons might solve a single need but they do not address the entire process. In fact, what they do is actually add yet another process, another set of licenses to maintain and pay for, and another throat (or set of throats) to choke. No thank you.
Lucky for you, you don’t have to buy that lottery ticket for a chance at improving your entire SEC reporting process, soup to macademia nuts. No, all you have to do is the same thing that hundreds upon hundreds of your peers have already done, and join the revolution that is WebFilings.
That’s it. EAT. LOVE. And WEBFILINGS. That's all you will need in life, and not necessarily in that order. Because once you’re on board with us, praying is optional but no longer required.
Read more:
Top 3 Myths of XBRL Outsourcing
Your Data is Secure: WebFilings Completes SAS 70 Type II Audit
Accounting Doesn't Have to be Depressing
The Devil is in the XBRL Details: Year 2 Compliance
This is why I enjoy the occasional night out with the fellas, and my wife the routine “mani and pedi” with the girls. I own Sundays during football season, and in return I go apple picking and hang Christmas lights without debate.
It is also why my wife will sometimes endure a random celluloid featuring the venerable Will Farrell, and why I will repay her by silently gritting my teeth through Julia Robert’s latest offering. And that, right there, is where this tale begins...
Two nights ago, kids sound asleep, my wife stumbled upon “EAT PRAY LOVE” in our cable provider’s On Demand menu, and requested that I join her for the viewing. If unfamiliar, as I was, EPL is an inspirational drama based on Elizabeth (Liz) Gilbert's best-selling memoir. Liz, played by Julia Roberts, is a woman who, on the surface, has it all - a career, a husband, and a new home. However, she realizes that she no longer has a thirst for life. So after a bitter divorce, she decides to journey overseas to Italy, India, and Indonesia to try and rediscover the true meaning of herself, and of life.
Surprisingly, this film held my attention, and I found it both well-written and heart-felt. And it is jam-packed with quotes that will make you pause and search for greater meaning of your own existence.
Among them was the following narrative by the story’s main character:
"I remember an old catholic joke about a man who spent his whole life going to a church every day and prayed to the statue of a great saint, begging, ‘Please, please, please, let me win the lottery.’ Finally, the exasperated statue comes to life and looks down at the begging man and says, ‘My son, please, please, please, buy a ticket.’ So now I get the joke, and I bought three tickets."
Interestingly enough, when I heard this quote in the movie I instantly thought of many of the day-to-day conversations I have with prospective customers here at WebFilings, and how similar in context they all are. And with good reason. It may sound a little crazy – a little zany and kooky, I know – but there is an undeniable truth to it. You ready? Well here goes:
If you want to actually improve your external reporting process – like, streamline it, make it more efficient, reduce your costs, reduce your risk, reduce your stress – then you have to, ya know, actually do something about it!
I know, I know, it’s definitely a moon-bat concept – something straight out of the X-Files or something – but unfortunately it is true. Yes, people, if you want to improve your SEC reporting process then you have to take action to make it better and not just pray to the statue of a great saint.
And to be clear, tossing your responsibilities over the fence to an already overwhelmed and unprepared Financial Printer is not improving your process. If anything, it is making it worse. It is sacrificing control, increasing risk, getting in the back of the proverbial deli line on a Sunday afternoon, and asking someone else to represent your company’s accounting for you. Not good. Bad. Their messaging might be that it is easier for you to sit back, relax, put your feet up, draw yourself a Calgon bath, and let them wash your sorrows away. And to that I say, good for you, Financial Printers, your marketing spin is working wonders (I mean, their marketing guys get paid too, right?). But deep down, I think we all know that, at the end of the day, all it really is is spin.
Bolt-on software for EDGAR or XBRL? Sure, I guess that solves a single problem, but it doesn’t really improve your process as a whole, does it? By comparison, if you put a spoiler on your 1970 AMC Gremlin to improve the aerodynamics does it make the car function any better overall? Of course not. Bolt-ons are band-aids, nothing more, over a wound that will never heal. Eventually you'll need to peel it off and put on a new one. Bolt-ons might solve a single need but they do not address the entire process. In fact, what they do is actually add yet another process, another set of licenses to maintain and pay for, and another throat (or set of throats) to choke. No thank you.
Lucky for you, you don’t have to buy that lottery ticket for a chance at improving your entire SEC reporting process, soup to macademia nuts. No, all you have to do is the same thing that hundreds upon hundreds of your peers have already done, and join the revolution that is WebFilings.
That’s it. EAT. LOVE. And WEBFILINGS. That's all you will need in life, and not necessarily in that order. Because once you’re on board with us, praying is optional but no longer required.
Read more:
Top 3 Myths of XBRL Outsourcing
Your Data is Secure: WebFilings Completes SAS 70 Type II Audit
Accounting Doesn't Have to be Depressing
The Devil is in the XBRL Details: Year 2 Compliance
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