Top 3 Tips to Save Price on iXBRL Preparation
Inline eXtensible Business Reporting Language or iXBRL is an open format that permits a single document to provide human and machine-readable data. The iXBRL format is used extensively by companies in South Africa, allowing regulators and preparers to have complete control over the preparation of Annual Financial Statements and reports.
The primary reason behind CIPC introducing the iXBRL standard was to streamline the financial reporting process of the companies and make financial information more accessible to users such as investors, regulators, stakeholders, etc. However, from investing in the right software to hiring/training experts in financial reporting, iXBRL has increased the cost burden of South African companies. Here are the top 3 tips to save price on iXBRL Preparation.
Fortunately, there are actions you can take to save money on iXBRL preparation. Intrigued? Read on to find out what these are.
How to save money on iXBRL preparation?
Tip #1 Streamline Your Financial Data Collection Process
With such a massive amount of financial data available for companies, it becomes increasingly difficult to process and collect this data. There is a tremendous expansion of cost and time required to analyze financial data to meet business requirements. Moreover, collating this massive amount of data can also result in many errors, further increasing the cost by adopting corrective measures.
Here’s what you can do: Streamline the whole process of financial data collection. You can simplify the task by automating the data collection through spreadsheets and breaking down your operations. Result? It becomes easier to collate reliable data. Removing complexities in data collation can help maximize cost savings. Furthermore, the better the financial data is collated, the less inclined you’ll be toward errors in financial reporting.
Tip #2 Invest in an Agile iXBRL Software
Financial statement preparation and report generation can be tedious and costly for companies, requiring lengthy procedures and professional expertise. Manual tagging and AFS preparation can take several days to complete.
How can you avoid that? Invest in comprehensive and agile iXBRL software that can ease the process of financial report generation. A standardized report can help in better comparison of business evaluation. Moreover, effective iXBRL software will ensure transparency of financial information to investors. Simply put, the repetitive tasks will decrease, resulting in overall cost reduction.
Tip #3 Outsource Your iXBRL Preparation
Filing your financial reports in the iXBRL format requires you to stay abreast of the latest updates and requirements of CIPC. You also need to hire experts with prowess in iXBRL report preparation and filing annual returns. This can result in substantial costs for your business.
What can you do instead? OUTSOURCE! Outsourcing your iXBRL preparation can reduce filing burden and errors. But most of all, it will help you minimize your overall labor costs. It will relieve the pressure off your employees and permit them to focus on other productive business tasks. Moreover, the experience and expertise of the outsourcing company can ensure the quality filing of financial statements and report generation.
What’s the Next Step?
Following these tips to save costs on iXBRL preparation is not as difficult as it seems. All you need is a reputable iXBRL solutions provider like DataTracks. With an experience of 16+ years and 2,00,000+ successfully generated reports, professionals at DataTracks provide CIPC updated taxonomy solutions catering to the iXBRL conversion needs of all South African eligible entities.