With steep penalties for non-compliance, missed deadlines, and incomplete submissions, filing your annual tax returns using iXBRL tagging is a headache most businesses don’t want or need.
Fortunately, there are a number of organisations willing to take iXBRL accounting off your hands, saving you the time, hassle, and worry of attempting to manage this highly complex and mandatory tax accountancy process in-house.
Experts in iXBRL tagging, Chartered Accountants HWB, explain why outsourcing your iXBRL in 2023 still offers businesses a more beneficial solution than taking on the burden of responsibility in-house.
Benefits of outsourcing iXBRL tagging
With iXBRL compliance requiring investment into specialist accountancy software as well as extensive taxonomy expertise, there’s much to be gained by outsourcing this part of your business accounting to a third party.
Here are just some of the main benefits that bringing in a specialist iXBRL-approved accountancy firm to manage your iXBRL tagging can offer:
1. Keeps your business compliant
iXBRL tagging is a highly specialised and complex area of business accounting that requires in-depth expert knowledge, far in excess of standard accountancy practices.
With it now mandatory for the majority of companies to file their business accounts this way, outsourcing your iXBRL tagging provides the reassurance that your accounts are in the hands of an expert iXBRL accountant, who is familiar with the compliance and technicalities of the process.
With cost of living rises already stretching consumers’ pockets, 2023 is likely to be as financially challenging an economic climate as 2022 for UK businesses. Outsourcing your iXBRL tagging helps you to relieve yourself of worry and avoid any penalties that could put your business under further financial strain at an already difficult trading time.
2. Frees-up your in-house resource
Another beneficial reason for outsourcing your iXBRL accounting is that it relieves your in-house resource from the responsibility, freeing them up to focus on other day-to-day aspects of your business accounting.
Rather than have your in-house team pulled from their usual responsibilities of payroll, book keeping, and invoice processing, thereby neglecting some of your business’s most important functions, iXBRL outsourcing allows them to focus on what they do best, while an expert takes care of making sure your end of year accounts are correctly iXBRL tagged and filed with HMRC.
3. Saves you the expense of having to purchase iXBRL software
Putting your iXBRL accounting in the hands of an independent iXBRL accountancy firm also relieves you from the expense of having to buy and maintain iXBRL software. This saves you from yet another costly business outgoing at a time when rising fuel and logistics costs are already putting businesses under extra financial hardship and impacting profit margins.
By bringing in outside support to manage your iXBRL tax filing you’ll be able to hand over all required documents simply as Excel spreadsheets and Word docs, without having to convert them to iXBRL compatible files.
Your appointed iXBRL accountant will then manage the entire end-to-end iXBRL tagging process on your behalf, so you won’t have to pay for software licenses and subscriptions, nor invest in any training for your in-house accountancy team.
4. Ensures no late filing
Entrusting your company’s iXBRL accounts to a professional accountancy provider also ensures your business tax accounts will be completed and submitted to HMRC in plenty of time before the deadline.
This gives you the further reassurance of knowing that, not only, are your accounts being professionally handled by an expert team with extensive iXBRL knowledge, but that you will never incur a late penalty from leaving your accounting too late or missing HMRC’s cut-off.
5. Makes it easier to grow your in-house resource
Another compelling reason for outsourcing your iXBRL accounting in 2023 is that it makes it easier to recruit in-house talent when looking to expand your team or backfill vacancies left by departing employees, versus needing to hire someone with iXBRL tagging knowledge.
This allows you to draw from a wider pool of potential candidates who represent a great personality-fit for your business, simply because they don’t have to possess iXBRL proficiency to be considered for a vacancy on your team.
In this regard, outsourcing iXBRL externally can be far more cost efficient than hiring a full time employee with iXBRL experience. That’s on top of the cost savings you’ll already make by not having to pay out for iXBRL software.
Does your business need to file using iXBRL?
Tagging your company accounts using iXBRL software is now mandatory for the majority of UK businesses and non-compliance could see your business incur steep financial penalties.
For more information about outsourcing iXBRL tagging from HWB, visit www.hwb-accountants.com