XBRL and the End of Accounting

What’s XBRL? It’s the end of accounting. As we know it anyway. XBRL (eXtensible Business Reporting Language) is the emerging international electronic language for business and financial information. Over 450 corporations and government agencies have joined forces an international non-profit consortium to develop XBRL and promote its widespread use.

Why XBRL?

• XBRL saves money.
• XBRL increases efficiency.
• XBRL improves the accuracy and reliability of financial data.

XBRL is a way to digitize financial information so that your old fashioned financial statements are expressed in a format that is computer readable to enable automated processing and access in real time.

What’s this got to do with your job? Maybe not much. Yet. But eventually the computer programs that manipulate XBRL may completely eliminate the accountant and the auditor. It’ll start with the largest corporations and trickle down to the mom and pop bakery on the corner. Don’t believe me? Did you ever think SAP would be marketing to small businesses? The have paved the way for all companies, large or small, to tap into the grid. And once you’re on, there’s no going back.

XBRL: Priceless tool of the future or evil rise of the machines?