7 GOOD REASONS TO OUTSOURCE XBRL SERVICES FOR YOUR SINGAPORE COMPANY
XBRL is the required XML (eXtensible Business Reporting Language) standard for labeling financial and business reports for every company incorporated in Singapore. It helps to improve the accessibility and transparency of company information by employing a consistent format, and it is the open worldwide standard for digital business reporting.XBRL is the required XML (eXtensible Business Reporting Language) standard for labeling financial and business reports for every company incorporated in Singapore. It helps to improve the accessibility and transparency of company information by employing a consistent format, and it is the open worldwide standard for digital business reporting.
The purpose of XBRL is to provide machine-readable, structured data in a human-readable financial statement format. In addition to creating financial statements, ACRA requires financial preparers to tag each number, note, statement, table, and accounting policy with an XBRL.
Every day, more businesses join the XBRL movement due to regulatory compliance. But it’s difficult to ignore the financial savings, improved administrative accuracy, and heightened productivity that come with XBRL reporting. We advise outsourcing the entire cycle of XBRL reporting.
The following are the main advantages of XBRL outsourcing services, which is the best option for many Singapore businesses.
Many businesses still rely heavily on manual procedures for analysis and reporting throughout the financial close process. Utilizing technology can help companies employ a best-of-breed strategy, reduce or eliminate errors, increase process scale, and provide executives with additional visibility.
In addition to simplifying the process, automating the requisite form generation can drastically cut down on—if not eliminate—the manual labor involved in the analysis and reporting of financial statements.
Note that public firms must use the XBRL format with tagging and precise details. Automation technologies make it simple and quick to prepare and extract specific data from one source into another. Automating these tasks is far simpler than manually updating numerous papers with the same data by hand. Furthermore, automation enables you to maintain version control and track alterations in real-time while many users are accessing and editing the same document.
Furthermore, companies can feel more confident about the integrity of their financial reporting and reduce the risk of audits and reporting errors by automating the XBRL process.
Save money on software and technology.
It can become expensive to set up XBRL programming and assign full-time staff to handle consistency, whether you are managing a start-up or an established business.
An effective operator and a reliable software solution are necessary to set up an internal system, implying higher software and infrastructure expenses. Saving money on expensive software and technology is one of the strongest arguments for why companies are turning to outsourcing XBRL specialists. You can save money by outsourcing your company’s XBRL reporting services and instead invest in business expansion or other endeavors.
Low overhead and labor costs
Hiring new staff members and providing them with the necessary training, particularly for XBRL tagging, can be costly. You can save labor and overhead expenses significantly when you outsource. Additionally, you get the staffing flexibility that comes with hiring internal personnel.
Reduce training expenses
It takes specialized education, experience, and skill set to comprehend the XBRL taxonomy. You might need to make internal staff training and education investments. But when you contract out your XBRL reporting, all you’re investing in are the costs of the service providers. Their staff’s training and maintenance costs and effort are not your concern.
Outsourcing frees up your accounting department to concentrate on its primary duties and reduces needless strain on your employees. This is because the complexities of XBRL tasks are handled by dedicated professionals with extensive technical knowledge and resources. A seasoned Boardroom team possessing well-developed abilities and knowledge may guarantee accurate XBRL financial statement filing for your business, delivered on schedule and possibly at a lesser expense than if you employed one or more permanent staff members.
Cut down on turnover.
Hiring a permanent or full-time employee can make XBRL tasks and financial reporting more manageable for a publicly traded company. However, XBRL conversion and financial reporting workload is unpredictable because it combines high productivity periods with long pauses between projects. By outsourcing, the organization’s employees can concentrate on greater value tasks for the business rather than compliance with regulations.
Besides, XBRL tasks can also alienate many individuals because the position does not involve involvement in daily accounting operations. Additionally, there isn’t a clear-cut career path for this job. People from this role frequently move into other, more desirable occupations with a clear career path within the organization or into different careers outside of it. One possible benefit of outsourcing XBRL services is that it may remove the need to sift through the applicant pool to find suitable people.
Improvement in productivity
Proficiency is among the strongest arguments favoring external specialist firms for XBRL filing. Outsourcing experts have demonstrated their proficiency with the XBRL language and are conversant with its taxonomies. They check that all trade and record labels are accurate and precise. You get to work with a seasoned professional who takes great care of your file and ensures that the data format, accuracy, and consistency are all in order.
Concentrate on your main business tasks.
This could be the main advantage of XBRL outsourcing services. There are still several other things to do in your company, such as managing human resources, customer service, operations, marketing, sales, and logistics. Taking on the extra workload of internal XBRL reporting will make things more difficult. So why not choose the simple and economical route of outsourcing? It will be more productive to devote time to the main company functions.
Experts in outsourced XBRL programming already have the know-how, abilities, and resources needed for XBRL tasks like formatting and reporting. They take notes and update their knowledge of new developments regularly so you can concentrate on improving your company while the XBRL professionals take care of the technical details.
The bottom line
Your reporting structure will be quicker, better, and more effective if you work with an exceptionally dependable XBRL partner who can provide high-quality XBRL services and timely deliverables with shorter lead times. As a result, you may concentrate resources and efforts on your core business while enjoying enhanced efficiency, more accurate reporting, lower risk, and lower costs.