The Importance of Finding the Right Managed Tagging Service Provider
Since April 2011, legislation has been in place in the UK that requires the vast majority of companies to submit their corporation tax returns and accompanying financial statements in iXBRL format to HMRC.
As a result, companies – especially large companies or companies with complex financial statements – should ensure they have a managed tagging expert in hand to convert their financial statements from a word, excel or PDF document into an iXBRL-readable format that is compatible with HMRC’s requirements.
Why enlist the help of a managed tagging service provider?
Choosing the right managed tagging service provider can make a world of difference to your business. A good provider, for instance, should:
- Ensure that your company’s financial statements are converted into an iXBRL format in a timely manner;
- Undertake testing to ensure that your company’s converted financial statements will be accepted by HMRC; and
- Offer their services at an affordable price.
On the other hand, pick the wrong provider and you may find that you pay too much for a service that prepares a faulty output. For example, you may find that your company’s financial statements are rejected by HMRC, or you may even receive tagged financial statements that do not accurately reflect the information contained in the original word, excel or pdf file.
If you’re in doubt about which managed tagging service provider to use, a good rule of thumb is to find a provider with a proven track record of successfully delivering accurate returns to HMRC.
DataTracks, for example, is recognised by HMRC as a managed tagging service provider, with over 50,000 iXBRL financial statements prepared to date. Additionally, DataTracks works to ensure that returns are successfully submitted to HMRC and offers pre-validation checks prior to filing for that additional peace of mind.
There’s never been a better time to look for a provider
Change is on the way when it comes to how certain companies within the EU will have to prepare their financial statements. Specifically, from 1 January 2020, the European Single Electronic Format (ESEF) will be introduced, which will require issuers with listed securities in EU regulated markets to prepare their annual financial reports in an XHTML format.
Although it’s not fully clear how the ESEF will impact UK businesses given the ongoing uncertainties surrounding Brexit, it’s always best to be prepared in case your company is affected.
Having an experienced managed tagging services provider on hand during this time can be highly beneficial, as they can guide your company through the different tagging processes that may arise in the near future and keep you updated on the latest reporting developments.
DataTracks understands the importance of providing a cost-effective service and offers transparent, affordable pricing that takes into account the complexity of your company’s accounts, as well as your required turnaround time.
Speak to a member of our team today for more information on how we can help get your company ready for year-end submissions.