In April last year, HMRC mandated that all corporation tax returns including Accounts and Computations for accounting periods ending after 31 March 2010, must be submitted online in iXBRL format. For many companies this meant that they had to convert their Accounts into iXBRL for the first time last year.
Outsourced iXBRL conversions proved very popular in 2011 as companies chose their auditors or other fully managed iXBRL service providers to convert Accounts on their behalf. This option was mainly driven by the uncertainty surrounding the requirement but some companies opted for their auditors as a “safe” solution to the requirement regardless of the (often) high charges imposed.
Nearly a year on since the first mandatory iXBRL submission to HMRC, it appears that companies are now more comfortable around the subject. In line with the prediction from the Big 4, at Arkk Solutions we have seen an increase in the number of companies enquiring about our iXBRL tagging software as companies look to bring the work in-house and regain control.
SOLUTIONS FOR BRINGING IXBRL IN-HOUSE
HMRC’s Free Software
HMRC’s free iXBRL software allows companies with very basic disclosures to easily convert their Accounts into iXBRL. However it does have limitations and most Corporate Accounts will not fit into the template.
If your accounting disclosures are basic then you shouldn’t have had to outsource your iXBRL conversion last year, but if you fall into the category of companies that outsourced because they found HMRC’s template difficult to use, then you may want to consider having another go this year. Try submitting your Accounts early outside the busy December and March peak periods for a smooth first time in-house conversion.
Accounts Production Software
Most accounts production software solutions now come with iXBRL as standard and in many cases they also offer fully automated conversion of Accounts into iXBRL. If you currently prepare your Accounts in Word or Excel but have been considering moving to accounts production software, then you could make the move now to save on iXBRL conversion costs.
There are likely to be changes to your current work processes so make sure you consider all necessary factors like your long term strategy, cost, resources and support before taking the plunge.
iXBRL Tagging Software
Investing in a stand-alone iXBRL tagging software means you can continue to prepare your Accounts in Word or Excel with little or no changes to how your Accounts are currently prepared. There are mainly three types of iXBRL software available:
1) Cloud software – the software is based in the cloud which means you don’t have to download anything to your computer. You visit the vendor’s website or online portal, upload your Word or Excel Accounts and embed the necessary tags online. The main advantage of using cloud based software is the flexibility to start using the solution straight away, however as the software is based online; the tagging experience is largely dependent on the quality and availability of your internet connection.
2) Desktop software – unlike cloud software, you will be required to install the software onto your computer, however this means you will be able to access the system whenever you need it as it is available offline.
3) Word or Excel Software – this is where your tagging takes place inside Word or Excel so the tagging software is actually part of your Microsoft office document. This offers fantastic conversion of Accounts into iXBRL as the layout and format of the original document stays intact. Arkk Solutions was the first company to launch iXBRL tagging software that works in this manner.
Reuse The Auditor’s Tagging Work
At Arkk Solutions, we recently launched a new bolt-on to our iXBRL Adapter that allows companies to import iXBRL documents prepared by their iXBRL provider last year (including The Big 4 auditors), directly into Word. This helps companies get the most from their 2011 investment while preserving their iXBRL tags with a simple one click rollover button. To find out more about how to use this service, please email us at enquiries@arkksolutions.com or join us at our breakfast briefing, details below.
Outsourced your iXBRL Last Year? Bring it back in-house while preserving and reusing your tags from last year!
Join us at our breakfast briefing to learn pragmatic solutions for bringing iXBRL in-house in 2012.
Why attend?
1) 1) Discover how to easily reuse the tags prepared by your provider last year, including the Big 4
2) 2) Get expert iXBRL tips from our senior iXBRL consultant - Nick Baldwin
3) 3) Learn how to significantly reduce your iXBRL tagging costs
To register and to find out more, please click here
