The article, “What’s all the fuss about XBRL?” highlights various features of the eXtensible Business Reporting Language as a tool for financial reporting. This tool enables the translation of data contained in financial reports into a computer-friendly format. XBRL uses the tagging approach to translate pieces of raw data in financial reports into a format that computers can understand and use in diverse accounting tasks (Drew, 2012). The article discusses the benefits of XBRL concerning the enhancement of accounting information systems. These benefits include increased control on financial data and efficiency in the scrutinizing of data by analysts and investors. Using XBRL and other validation software facilitate the creation of a framework upon which concerned parties and stakeholders can quickly extract key information. The author illustrates this concept by considering a scenario in which an analyst wants to evaluate the intellectual property (IP) spending within the technology sector. Using the traditional means, the analysts would undergo a gruesome process of extracting financial filings of all the technology companies and recording the IP spending number in an excel file (Drew, 2012). XBRL shortens the process by facilitating the use of the same IP spending tag in the analysis and compilation of financial results.
The author’s view concerning the importance of XBRL in enhancing the analysis of financial data is justified. This tool facilitates an easier and faster exchange of financial information throughout the world upon a platform of software applications. XBRL promotes transparency in various aspects of financial reporting as it allows easy exchange and extraction of fiscal data. It digitizes the existing accounting standards and thus facilitates the establishment of more comprehensive accounting information systems. Various aspects of XBRL introduce flexibility concerning companies’ reporting. XBRL eliminates negative outcomes associated with delayed analysis of financial information such as the loss of potential investors, difficulties in convincing financial institutions to provide loans and the depiction of incredible financial statements.
The article, “Technology and CPA”, discusses the changing trends in accounting due to the transformation in information technology. The author presents views of professionals concerning the technological trends in accounting. The transformation in mobile technology and cloud computing has facilitated the integration of information systems in most of the aspects of accounting (Drew, 2012). These developments allow accounting professionals to access cloud-based applications, data and communication using mobile devices. The author asserts that technological developments introduce high levels of connectivity that facilitates the efficient and faster exchange of accounting information between concerned parties. The article also discusses the enhancement of business intelligence due to the introduction of sophisticated data analysis tools. These tools will create comprehensive accounting information systems that use large databases and advanced algorithms to analyze the financial activity of an organization. The author describes a situation whereby accounting systems will encompass different perspectives for analyzing risks and opportunities for improvement. These systems will provide real-time data and thus reduce the workload associated with the consolidation of various aspects of accounting (Drew, 2012). In addition, the automation of financial information will streamline aspects of tax analysis, which is crucial in functioning of accounting systems.
An evaluation of the trend in technological advancement substantiates the author’s assertions regarding the change in accounting information systems. These advancements will create automated accounting systems that will eliminate the need for data entry. Computer systems will facilitate automated recording of transactions and thus promote effective analyzing of trends and areas that require improvement within organizations. This shift towards miniature gadgets such as tablets and mobile phones as tools for analyzing financial activity will introduce flexibility within an organization’s accounting systems and minimize operational costs. Cloud computing will foster faster access to data of an organization by both its employees and external parties such as potential investors.