Why Should CFO Opt for iXBRL Software?
During the Covid-19 pandemic, companies all across South Africa have increased their reliance on technology. From remote working to tools like automation and analytics, all CFOs and auditors ensure productivity by building confidence in the quality data available for decision making. While assessing your organization’s digital priorities, one digital area that can benefit your accounting and reporting needs is adopting the iXBRL reporting standard. Like any other digital technology, CFOs need to understand iXBRL’s working, benefits, and challenges.
Inline eXtensible Business Reporting Language or iXBRL is a digital reporting standard that allows a single document to deliver both human-readable and machine-readable data. Investment in iXBRL software can lead to cost reduction & growth and enable automated handling of a company’s financial data. Besides these, there are some other benefits of opting for iXBRL software as well. Diving deeper…
Benefits of iXBRL Software for a Business
- Reduction in Time, Cost, and Effort
Many companies may look at iXBRL as another compliance burden. However, in practicality, it is more of an opportunity than a burden. The generation of automated reports can streamline the entire regulatory filing process, which can otherwise be an extremely labour and cost-intensive task. The manual generation of XBRL instant documents is nearly impossible. This is why CFOs need to opt for iXBRL software.
- Tax-Based iXBRL Software
Most of the iXBRL software available in the market today are tax-based. What is tax-based software, you ask? Tax-based iXBRL software is regularly updated with new tax regulations and policies, enabling companies to implement changes in their filing and preparation of AFS and annual returns.
However, CFOs of many South African companies believe that financial executives view iXBRL as just an added step for regulatory requirement or compliance. Reason? The benefits of iXBRL have not been communicated well to businesses. In addition, it generally requires investing in software to consume data, resulting in companies trying to avoid its use.
How can CFOs Tackle the Lack of iXBRL Awareness?
By training and educating the staff in accounting, finance, and investor relations, CFOs intensify their role in offering quantitative information and insights related to the company’s financial data. Moreover, they also need to be trained about the iXBRL tagging of reports. Why? Because the efforts of preparing AFS can go in vain if the stakeholders come across tagging errors in those reports.
iXBRL – Driving Efficiency
As the use of the digital reporting system – iXBRL continues to grow by the regulatory bodies, companies that have opted for an iXBRL software can reap benefits from preparing and filing high-quality reports. Moreover, it also helps them provide valuable information to stakeholders and capital markets, accelerating the decision-making process. However, if you want a streamlined filing experience without the need for in-house training, partnering with a trusted iXBRL service vendor can be your ideal choice.
DataTracks, with an expertise of more than 16 years and 200,000 compliance reports, ensure quality and reliability in your financial reporting with CIPC. Speak to an iXBRL expert at +27-10-446-9061 or email @email@example.com and make your way towards 100% error-free reports.