Should Small Companies in Singapore Choose to Outsource XBRL?
In Singapore, XBRL filing works by converting the financial data of an organization into the XBRL format. This can be done by using tag libraries prescribed by the ACRA and requires an in-depth knowledge of XBRL tags. If a company does not possess adequate resources or time to complete the process it is advisable for them to outsource their XBRL filing.
Let’s have a look at the reasons why it would be more advantageous for smaller companies in Singapore to outsource XBRL conversion.
The cost that a company would have to bear if it chooses to file in-house would be huge. Some of the the expenses incurred in case of inhouse filing are:-
- Investing in hiring and training a team to handle the process.
- Heavy penalties in the form of rectification costs resulting from the absence of a proper understanding of taxonomies and principal subsets, leading to inaccurate XBRL conversion.
- Associated infrastructural facilities and technical support.
Outsourcing XBRL conversion services, in exchange for a comparatively small service fee, would relieve the company of all the costs mentioned above.
- Reallocation of Resources
Outsourcing allows a company to let go of the monumental outlay of recruiting Investments, IT structures, and other costs. With the latest XBRL software and trained professionals on their teams, outsourced XBRL providers are equipped to handle the process better.
This fact allows the company to invest the funds to expand its business that would have otherwise been spent in setting up a team and preparing them for complex XBRL tagging and systems.
- Guaranteed Accuracy
XBRL service providers consist of teams of individuals with experience and requisite skill sets. By outsourcing XBRL filing, a company can be rest assured that its XBRL reports are overseen by XBRL experts who are not only experienced but also up to date with the complex financial reporting standards and the Singapore taxonomy.
- Satisfactory Compliance
ACRA lays down several XBRL filing requirements that need to be complied with by every Singapore-based company. Outsourced XBRL service providers are generally always up to date with ACRA’s filing requirements, thereby ensuring compliance with the latest norms and standards.
- Control Concerns Waived Off
Control over the process is one of the major concerns shown by companies when it comes to XBRL filing. During the XBRL conversion and filing, process companies seek various controls like change control, multiple reviews, version control, approvals, and IT controls.
The need for constant involvement of the company is taken away by outsourcing XBRL conversion services. Smooth communication flow between the outsourced partner and the company’s team and robust data security measures help overcome the fear of lost governance over XBRL conversion.
Outsourcing XBRL is the Ideal Solution
Outsourcing is the ideal solution for error-less and hassle-free XBRL conversion and filing services. Choosing an experienced and reputed XBRL conversion service is very crucial for any business.
DataTracks, a global leader in XBRL Solution, is market-ready with ACRA taxonomy. Catering to the needs of Singapore entities since 2013, DataTracks can help any company in Singapore that is looking to outsource XBRL conversion.