The MCA mandate for companies to file their financial statements in XBRL format had indeed stirred a hornet’s nest within the XBRL market. Today the market is flooded with a wide range of XBRL solutions.
These solutions come in various types and with varied features. There are Excel template-based offerings which can be used for simple financial statements. There are many other software solutions offering various features, with the cost ranging from a few thousand rupees to a few lakhs of rupees. With such a wide choice in a new market opening up for the first time, choosing the right solution requires lot of insight on the features and merits of these offerings.
CA firms typically serve XBRL conversion needs for multiple clients, mostly their existing practice clients. They have been very careful in choosing the right XBRL solution as they serve clients, for whom they have been providing high value consulting and auditing services for years.
The most critical factor for them while choosing their XBRL solution approach, is therefore timeliness, reliability and quality. Many CA firms prefer engaging with XBRL conversion service providers rather than handling the software complexities by themselves for a number of reasons. Apart from the difficulty in choosing the right XBRL software, there are many reasons why CA firms may find it convenient to engage the services of an XBRL conversion service provider.
Understanding the concepts of XBRL and handling validation issues would require expert knowledge and experience. This includes training and orientation on the usage of the software and a detailed understanding of the taxonomy elements. This requires a considerable investment of time depending on how complex or easy the software is to use and also money depending on how expensive the software is.
Managing each XBRL tagging job in the software is a structured process and it demands meticulous attention. Using new software can at times be quite challenging. Investment in infrastructure such as server, work station and secure networks for executing the jobs also makes the CA firms wary of the software approach.
Given the limited time period available for filing within the deadline, they would require many skilled resources as a team to be able to handle the work load, especially when they have more clients. Most CA firms find this level of investment in building a team not viable, as this is just a onetime activity.
Many CA firms have preferred to use the XBRL conversion services of a reliable service provider like Pratham Consultants. Pratham Consultants provides quality XBRL conversion services to CA firms at very low prices and within committed delivery turnaround time.