Things were simple before the advancement of technology. Companies used to submit their Annual Financial Statements in PDF format, and everything was in order. Even though the process required constant analysis, processing, and extensive calculation, companies and accountants were set in their own ways of filing and reporting financial data.
But things changed when the CIPC mandated iXBRL filing for all South Africa-based companies. Now, the companies are required to file their AFS in the iXBRL format, a form of digital financial reporting system which aims to simplify the exchange of financial information. Doesn’t seem so simple with all the complex tagging and taxonomy, does it? Let’s discuss some common challenges faced by businesses in iXBRL filing and how to overcome them.
- Lack of Consistent Availability of iXBRL Resources Internally
Since iXBRL is still in its infancy stage, it isn’t easy to find professionals who specialize in iXBRL taxonomy and language. Moreover, even if you do, it can cost you an arm and a leg to sustain them in your organization full-time. This is the reason most businesses are shifting towards outsourcing the iXBRL reporting and conversion services to reputed software service providers.
- Special Software Requirement
Filing with iXBRL requires an in-depth understanding of CIPC regulations and complex taxonomy. Not only just that, but it also necessitates special software that converts the financial statements into the iXBRL format. So, there’s this additional need to invest in software and hire an expert who understands the language of iXBRL.
- iXBRL Tagging Process is Time-consuming
Another challenge that most companies face is that tagging every transaction or statement using the accurate taxonomy, keeping in mind the CIPC compliance regulations, is challenging and time-consuming. The solution is simple – OUTSOURCE. Reputed software service providers can take this tedious task off your hands, that too, at affordable costs.
- Final Submission is Almost Impossible
As mentioned above, it is difficult for the in-house team to tag respective accounts accurately, which may lead to errors and more time consumed. And the thing about submitting AFSs to CIPC in iXBRL format is that it requires accurate tagging, which makes final submission all the more complicated.
Keep Your Mind at Peace and Simply Outsource
Business owners find themselves in a pickle when it comes to iXBRL filing. But, why burden yourself with your already existing operational and sales troubles when you can simply outsource the entire tagging and conversion process for reporting to the experts like DataTracks? With DataTracks’s dedicated and highly trained iXBRL experts, you can now have access to trouble-free and accurate financial reports in the iXBRL format, which are compliant with the CIPC. So, no more head-scratching and manual entries; speak to one of the experts @ +27-10-446-9061 and unburden yourself from this hassle once and for all.