4 Common Challenges in Preparing Financial Statements in the XBRL Format
Even though XBRL is an interactive digital tagging system for financial reporting, companies continue to face several challenges when preparing XBRL filings. They remain sceptical about its usefulness.
One of the most significant hindrances in this arena is making the transition from stand-alone in-house XBRL preparation to outsourcing services. Outsourcing XBRL filing to the experts enables companies to not only bring all aspects of the ACRA-compliant filing preparation and reporting to rest but also gives them the added insurance of error-free filing. Let’s try to address these concerns.
Challenges Faced by Companies in Preparing Financial Statements in the XBRL Format
- The Fear of Rejections or Warnings
First things first, whether you choose in house preparation or outsourcing, the major concern of every Singapore based firm is the fear of rejection or warning. Before final submission, most of the errors are pointed out, but the accuracy of the financial statements cannot be determined. But, with the help of credible and reputed conversion services, companies can now put all their worries at bay as these service providers make sure that all financial data is precise and there are absolutely zero chances of penalties or rejections.
- Error-free XBRL Filing
In order to ensure error-free filing of financial statements in compliance with ACRA, companies have to attempt multiple revisions. The issue here is that one cannot submit their financial statements in the XBRL format if there is even a single error point, which is why companies face a challenge as most of them are not fluent in proper XBRL tagging and ACRA Taxonomy. This is the reason why hiring an XBRL expert or outsourcing the tagging and conversion is an ideal choice.
- Time Consuming
The entire process of converting accounts to XBRL format takes approximately 30 minutes and that’s just for a single set of accounts. Additionally, the financial statements include several tagging and taxonomy compliances that need to be taken care of, which makes it a tedious and time-consuming task.
- The Requirement of Manual Entries
Paying huge subscription fees for software to ensure accurate XBRL conversion doesn’t suffice anymore. With complex tagging and taxonomy, companies have to perform manual entries in order for the software to convert financial statements into the XBRL format.
Many Challenges, One Solution – Outsource
Why face so many challenges when you can simply outsource the task of managing and converting financial statements into XBRL format to outsourced service providers like DataTracks. With an exemplary record of over 15 years, DataTracks has built a prowess in the error-free conversion of financial statements to XBRL format. For more information on the services and benefits, reach out to an expert @ +65-315-836-54.