Introduction to XBRL
XBRL or Extensible Business Reporting Language is an open standard for business reporting and communication of financial data.
It makes the compilation of financial data easier and also helps in bringing uniformity and standardization in the way the financial data is presented and communicated. It is a universally preferred language for transmitting data electronically.
However, it does not change what is reported, it only changes the manner in which it is reported.
What is XBRL Outsourcing?
XBRL outsourcing generally is a business practice wherein a party outside the company is hired to perform a part or whole of the work.
Preparing and filing the financial statements as per XBRL format can be a tiring and time-consuming process. Companies requiring to present their data as per the XBRL format can either have in-house, dedicated employees for that purpose or can outsource the whole process of XBRL filing.
Once the task is outsourced, the XBRL outsourcing partner assumes the work assigned and undertakes all the responsibilities relating to that particular task.
Why do companies need XBRL outsourcing partners?
Outsourcing the task of preparation and presentation of financial data in XBRL format allows the companies to focus on more important and core areas of their business.
While some companies find XBRL outsourcing as the best approach, there are some companies who are insecure about their data being leaked or, misuse of financial data, which is quite common in today’s internet era.
Sometimes compliance procedures can make companies feel over-burdened and occupied with a monotonous task, hence to overcome this, companies can choose to outsource the task of XBRL compliance. In this way, companies can spin off less critical operations to outside organizations and concentrate on important areas.
Apart from the numerous benefits of XBRL outsourcing, one of the major benefits is, that it helps to cut down various costs relating to salary, maintenance of software, overhead cost, and equipment cost.
How to choose the best XBRL Outsourcing partner
Choosing the best XBRL outsourcing partner amongst the available options is very necessary. Meeting the compliance requirement on time and as per the applicable laws and regulations is very important since the non-compliance could lead to heavy penalties and also tarnish the image of the organization.
Various ways which can help you to evaluate which XBRL outsourcing partner to choose is as follows:
Experience of the XBRL outsourcing partner: The outsourced team should have well past experience in similar types of engagements and should have the necessary skill and staff having proper knowledge of the financial statements and requirements of the XBRL compliance framework to perform the task.
Proper Communication: There shouldn’t be any communication gaps between the engagement partner and the outsourced partner. It would be impractical to have direct contact with every concerned member, but there should be a strong rapport with great confidence among the members. Since XBRL compliance is a time-based filing, communication on a timely basis becomes more important.
Transparency: Members of both teams should provide each other with the required information which is true and correct to the best of their knowledge to make sure reporting should be done on a timely basis. Sometimes outdated information is of no use. So, it is better to communicate right information at right time in a transparent manner.
Security Measures: It is very crucial to ensure that the proper safety measures are in place when you hand over client-sensitive and organisation-related information to a third party. Check for the integrity of the management and their past records before engaging any third party for outsourcing operations.
Support at all times: Partners' assistance is required right from the start and throughout the process. Also, enquire if the support services are separately chargeable or are included in the package itself.
Filing success guarantee: Make sure that the outsourcing partner you have selected provides you a 100 percent guarantee of completing the filing work on time and in a proper manner.
Why choose Webtel for XBRL Outsourcing services:
Webtel is leading and a one-roof solution for your various e-compliance, including the filing of annual statements under Cost-XBRL, tagging, mapping, and compilation.
By outsourcing your XBRL filing to Webtel, you can reduce the risk of heavy penalties and save time since our experience and professional team will help generate accurate XBRL compliance reports.
We not only do the conversion of financial statements as per XBRL format but also provide the facility of converting cost audit reports to Cost-XBRL mode. Out team will analyze verify and probe the report and then the converted report is validated and pre-scrutinized. The whole process is carried on by the professionals in the correct and prescribed manner.
At Webtel, you get support at all the stages right from starting till the end. Along with error-free work, we will also ensure that the work is completed on a timely basis.
So, what are you waiting for? Take the first step towards simplifying your XBRL compliance processes by choosing Webtel as your ideal XBRL outsourcing partner.
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