XBRL Dos and Don’ts
Top tips in preparing for the new legislation
Keep it simple
With so many decisions to be made in the field of iXBRL filing we have produced a set of simple dos and don’ts to assist you in your decision making. For more details on any of the issues below please contact one of our iXBRL team.
- Undertake the correct preparatory work:
- Optimise your tax computations for e-filing (for example by using the standard template schedules provided by your compliance software).
- Consider a two step strategy. i.e. A tactical approach to comply in the short term bearing in mind HMRCs ‘soft landing’, alongside improving your entire accounts production and tax compliance process over 2 - 3 years.
- Understand how this fits into wider IT and finance function programmes in your organisation
- Consider outsourcing, as it may be the most appropriate and cost effective approach for your business.
- Understand the new solutions and services available in the market, including accounts conversion tools, accounts preparation packages and financial reporting transformation.
- Comply with just the minimum tagging list that HMRC require. Tagging more of your tax computation or accounts will require additional effort with no immediate benefit.
- Review success of first year’s filing and assess other suppliers.
- Don’t invest in changing your existing financial processes to support e-filing under UK GAAP without considering the implications of transitioning to IFRS accounting standards.
- Don’t commit too early to a manual iXBRL ‘accounts conversion’ tool, tying your organisation into a software solution which may not be suitable in the longer term.
- Don’t assume that your tax compliance software will automatically tag all the required elements of your computations. Some preparation may be required for non-standard or free format areas of computations.