Why you should outsource your iXBRL requirements
Different regulatory bodies worldwide have recently passed regulations for publicly traded corporations. Over the past year, many organizations and regulatory agencies have put forth new rules that govern how and when organizations must report their annual and quarterly financial statements. One of the most significant changes that organizations will have to handle concerning financial reporting in the future is a new requirement called Inline XBRL or iXBRL reporting.
iXBRL is a new form of financial reporting that will make initial reports more readable for both humans and machines that need to analyze financial statements. When trying to generate financial statements that are compliant with the new processes, you will have to complete a fair amount of work to ensure that they are appropriately coded and can be transmitted effortlessly through the new regulatory system. Those that are not able to stay in compliance could end up facing regulatory penalties.
5 Advantages of outsourcing your iXBRL requirements
Meeting this new requirement and staying in compliance is not always as straightforward as it sounds. Simply because preparing files in the XBRL and iXBRL formats is not the primary focus of your business, you might be better served to outsource this part of your compliance. Enlisting the services of experts who know their way around the reporting language comes with a slew of benefits.
- Ensures that everything is up to code.
One of the main reasons to hire professionals for iXBRL conversions is that it will help ensure things are done correctly. In the process of tagging all of your financial statements for the first time with iXBRL taxonomy, making a mistake can be rather easy. Since all lines on a financial statement will need to be carefully assessed and reviewed, letting experts handle the tagging is a good idea. It will drastically reduce the risk of accidentally submitting incorrect financial statements.
Providers of iXBRL solutions have a singular focus on delivering documents of the highest possible quality. For example, an average of over 89% of existing DataTracks customers around the world vouch for the quality of our services and output and 86% of them swear by the continuous improvement in the quality of our service. It only goes to show that dedicated providers of iXBRL solutions are the prudent choice when it comes to compliance reporting.
2. It effects massive savings in costs
Outsourcing your iXBRL requirements can result in considerable savings of expenses for your organisation. Even if your company has a full accounting and computer programming staff, all of them would need to be trained in the new standard of accounting from scratch, which can be a costly and elaborate process. A much better option would be to outsource this process to an organisation made up of individuals that are already experts on the new reporting requirements.
8 out of 10 businesses report significant savings in both cost and time after outsourcing their XBRL and iXBRL needs.
3. It improves accountability
When your organisation submits new financial statements in any given year, it assumes ultimate responsibility for those financial reports. However, when it comes to the new reporting procedures, dedicated XBRL/iXBRL solution providers will facilitate the thorough review of element selections before submission, resulting in better compliance. They will be able to work with you and the regulatory agencies in tandem to find optimal solutions to any problems that might crop up.
4. It makes business processes more efficient.
Another benefit of hiring a third-party service for your accounting conversion is that it will help to make your organisation more efficient. It frees up your company’s time and resources to focus on your primary business objectives. It enables your accounting and IT staff to concentrate more on the essential daily operations of your organisation, keeping them efficient and moving in the right direction.
5. It lightens the load of having to keep up
Other notable advantage of outsourcing iXBRL conversions is that it’s significantly future-proof. While the new reporting standard is here to stay, there are bound to be additions and changes to it in the future – be it in the taxonomy or the structure or the validation rules. In any given year, there will be new ways that you’ll be required to code accounting lines and make additions. A service provider will unquestionably stay on top of news and updates, saving you the hassle of having to learn things afresh periodically. This way, all your iXBRL needs will be taken care of for the foreseeable future.
DataTracks is the foremost provider of regulatory reporting and compliance solutions, and we consistently hold the top two positions in the general rankings of the XBRL Cloud Report. Our rankings indicate a demonstrable history of the lowest error margins and maximum adherence rates. For more detailed information, reach out to us at enquiry@datatracks.com.