Filing company accounts in digital format to Companies House
The UK businesses filing their annual accounts to Companies House are undergoing a significant transformation. Moving towards complete digitalisation, Companies House will mandate a full software-only filing approach. This article will underline the key aspects of this transition and how it will benefit UK companies in the coming years.
What Happens In The Software-Only Filing?
The software-only filing format will make the process seamless for companies by eliminating the option for web-based or manual filing options. All companies must use dedicated software to create and submit their annual accounts in a standardised format. This change will apply to companies filing accounts independently or seeking assistance from third-party agencies for the annual filing process.
According to reports, this change will be applied in phases over 2-3 years. A detailed timeline will be released to announce the implementation of the modification. While the date for the software-only filing is yet to be confirmed, many companies are already embracing the change and applying it across their accounts.
It is significant to mention that the software solutions will address various accounting needs. This will not only allow them to file electronically but also minimise the efforts incurred in the filing process. It also addresses the current complexities involved in paper filing. Companies House has also been collaborating with many accounting software providers to develop customised solutions for different scenarios, providing a smooth transition.
Why Does This Change Matters To UK Companies?
The radical shift to software-only filing is a step towards seamless and centralised financial reporting. There are plenty of reasons why this change is requisite for UK businesses; a few are mentioned below:
● Maximised Security: Software-only filing will make the process seamless by saving businesses time and effort. Compared to manual submissions, it will also strengthen data security.
● Better Data Quality: A standardised format for annual filing will increase the accuracy of business data. Automated checks will ensure that data submitted by businesses is error-free, leading to reliability.
● Sustainability and Cost-Effectiveness: Software-only filing will eliminate the need for printing and physical storage, making the entire filing process cost-effective and sustainable for businesses in the UK.
● Enhanced Transparency and Traceability: It will become much easier for businesses to showcase transparency in their accounts. The electronic submission will foster traceable audits for all the financial accounts, bringing accountability to the business data.
What Edges Will The Change Bring?
UK businesses are looking forward to the positive changes the software-only filing approach will bring. Companies can indeed enjoy several advantages from this transaction. The following are some evident benefits:
● Simplified Compliance : Generally, these accounting software come with built-in compliance features, making it much easier to file compliant reports. This will ensure proper adherence to all the latest reporting regulations by Companies House and HMRC.
● Minimised Errors : The automated data feature minimises errors. The data validation function further helps reduce the errors generally encountered in manual filing.
● Better Collaboration : With manual filing, there is a limit to collaborating with different departments. However, software-only filing will provide seamless collaboration with various teams for accurate and up-to-date data filing.
● Enhanced Accessibility: Accounting software’s user-friendly interface makes every feature and data accessible to everyone on the team.
Why iXBRL Matters More Than Ever?
Inline Xtensible Business Reporting Language, or iXBRL, will be pivotal in the software-only filing process. As a widely accepted filing format, businesses must ensure that software generates data in this format. With iXBRL, embedding data tags will become more effortless than ever. This will allow Companies House to allow automated analysis.
Companies accustomed to manual filing may encounter some complexities. Hence, switching to the iXBRL format is advised to blend in with the software-only filing. The benefits of iXBRL outweigh the challenges, and businesses of all sizes should adopt to file accounts in digital format while the transition happens.
How Will DataTracks Help?
DataTracks, as a leading provider of regulatory reporting solutions, facilitates businesses with seamless iXBRL accounts preperation enabling smooth company tax retun filing with HMRC.
Our services range from company accounts tagging, tax computation tagging to CT600 filing, so you never have to switch between agencies. Additionally, DataTracks supports iXBRL tagging for Companies House for an easy transition to software-only filing.
Get in touch with our experts today to convert your company accounts into iXBRL reports for smooth filing with Companies House and HMRC.