7 Advantages of Filing Returns in XBRL format
Books of Accounts should be true, reliable and must accurately convey the current financial position of a business. In Singapore, every registered company is required to submit income statements to IRAS in an innovative format known as Extensible Business Reporting Language (XBRL). This technological advancement in furnishing income tax returns is part of the government’s efforts in advocating the growth of the small and medium enterprises (SMEs).
What is XBRL?
XBRL is computer language accepted globally for communicating business and financial data. The software is an effective solution to easily communicate the financial or business data electronically with the aid of the Internet. The communication of specialized data ensures accuracy, speed, and reliability. The Accounting and Corporate Regulatory Authority (ACRA) has supported the new computer language and fully trusts its effectiveness. ACRA appreciates the accurate flow of financial information between businesses that helps the enhancement of the SME sector and entrepreneurship development.
Advantages of XBRL
- Accurate financial reporting – The software is helpful in easily and accurately filing income statements. The application has made it more comfortable to submit income returns electronically.
- Automation – With the help of the software, business owners are free of any calculations and errors that may result in omissions and misrepresentations.
- Saving on costs – The software is very cost-effective. By using the software, business owners avoid the use of paperwork and minimize man-hours spent in the process of filing manually.
- Fast process – XBRL is relatively quicker in terms of process. Income statements can be easily and quickly filed and submitted.
- Quality Information – The XBRL format ensures dissemination of high quality and reliable information by the sender. XBRL helps to enter accurate information by verification of the data.
- Global acceptance – XBRL is being used globally in various sectors such as banking, securities regulations, insurance and taxation. It is being trusted by the Government of Singapore for efficient reporting of income statements.
- Decision-Making – Time is very important for any business owner. Since the XBRL makes the filing and submission of income statements significantly easier, entrepreneurs can focus on crucial parts of running a business.
How to file statements in XBRL format?
A Singapore incorporated company can file the income statements with the option A for the following cases:
- The business owners use FS Manager to prepare all kinds of financial statements that have to be submitted at the Annual General Meeting.
- Any company that comes under the category of insurance companies, banking, and financial institutions have to submit XBRL income statements.
- All the companies in Singapore have to submit returns in XBRL format after November 2007.
Do you require assistance?
Richmond is your one-stop solutions provider for if you are looking for assistance in filing and submitting your company’s income statements efficiently and accurately. We have a pool of qualified and experienced account managers who are able to help you file returns in XBRL format.
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