An overview of Using iXBRL Software for Conversion and Tagging
Over the past few years, the European Union has directed that all financial reports will now be done with support from iXBRL. iXBRL stands for inline extensible business reporting language. It is now being adopted by business firms and financial institutions and allows the presentation of financial information readable by both humans as well as the computer.
Tagging and conversion
The iXBRL has further been used for tagging information so that it can be recognized easily for analyzing reports. Special iXBRL software is also used by specialist firms to convert financial documents into iXBRL readable format. As per HMRC guidelines, the companies have to submit the tax returns and accounts in the prescribed format or they will face rejections and penalties.
With easy tagging, exchange of financial information between two departments becomes easier and saves time with less chances of errors. Tagging the data along with a Ixbrl software conversion tool from documents is also used.
The HMRC has made the process easier by introducing online filing software for small companies. Alternatively, companies can outsource the financial planning report work to outside firms that have their own conversion software. The software is used to convert word documents and PDF into iXBRL and then uploaded online.
Use of conversion software
The software is used for sending company tax returns form CT 600 and their supplementary pages, statutory company accounts and other financial attachments. The conversion software as noted before is used to convert word and excel accounts into iXBRL efficiently. This assists in better review of the files and tag accounts manually.
Outsourcing the iXBRL work reduces high risk of errors and is cost-effective for a business. The software gives a transparent system and reporting in organizations with better return on investments. The business files can be used again if required. The conversion supports big organizations also and extracts unnecessary data out by conversion of business accounts.
Make sure that the firm you strike a deal with uses a good quality software.