What attracts potential stakeholders to invest in any organization? Accurate numbers? Easy data comparability? Good governance? None of these. What attracts them the most is a good return on their investment? However, a good return is only possible when the company has a bird’s eye view of its financials. And this is where iXBRL comes in. By helping companies present their data more accurately to the regulators, iXBRL has now become the mainstay method for reporting annual financial statements to the CIPC.
Let’s take a look at how iXBRL helps companies, including various users of information such as regulators and stakeholders.
1. Better Access to Information
Stakeholders can ask for a company’s financial any day of the week. Usually, it takes time to fetch numbers and present them accurately. But what if there is a way to extract the same data with nothing but a click of a button? iXBRL, with its account-tagging and taxonomy, allows users to fetch data easily in a standardized format. By providing easy access to data and comparability, it helps put the stakeholder’s mind at ease
2. Improved Data Accuracy
It has been proven time that iXBRL is the error-less reporting way. The tagging and taxonomy of iXBRL does not leave room for any errors, which is why it is the most effective method of reporting annual financial statements. Apart from high returns, accurate data in a standardised format is what stakeholders are on the lookout for.
3. Saves Time
Creating and presenting multiple reports to stakeholders can be time-consuming. By owning data in the iXBRL format, companies can save time on creating different reports for different purposes. They can easily create different subsets of the same annual financial statement with minimal efforts and without compromising on its accuracy.
CIPC holds the most extensive data of businesses, and iXBRL is a global standard based on XML that allows for the provision of all financial data to various users with utmost transparency. These various users may include company directors, investors, board, CFO, or even potential investors. When you file the iXBRL way, all your financial data is cumulated in an orderly and systematic manner, which makes it more functional and convenient for users to vet.
Get it Right with iXBRL
If you don’t get your iXBRL filing right, you may have to face troubling waters ahead with customers, investors, and potential stakeholders. But with the help of a proficient professional like DataTracks by your side, you reap the benefit of error-free reporting. By helping companies comply with every new and existing rule of the CIPC, DataTracks has a commendable track record of 15+ years in the industry. Having prepared more than 185,000 iXBRL returns globally, DataTracks strives to provide cutting-edge regulatory reporting solutions across the globe. To know more about their solutions, speak to an expert (@ +27-10-446-9061) or write to firstname.lastname@example.org today.