3 Dec 2009
Rachael Singh on Technology
Software companies are drawing battle lines against accountants over who should provide lucrative services to help firms deal with new filing regulations.
All financial statements and corporate tax filing through the taxman and Companies House must be done in a new technology format from 1 April 2011.
With the deadline looming, accountancy firms and software houses are competing to help businesses prepare their accounting systems to meet the new requirements Companies' financial data will need to be "tagged" using iXBRL technology under the new rules.
With each piece of data tagged, it is easier to compare financial information from different companies.
The data is then converted to enable users to view the tags attached to the financial information.
Accountants could be more expensive for clients to use to help convert financial data into iXBRL, compared to buying software to automate the process, said Graham Tilbury, senior tax technology advisor at financial software company Digita.
"For the larger consulting practices this is their opportunity to get more consulting revenue," he said.
However, Jon Rowden, PricewaterhouseCoopers XBRL assurance leader, said that providing iXBRL technology was a "particular challenge for the software provider".
He added that a lot of work would need to go into preparing tax compliance software to be iXBRL ready.
Dennis Keeling, a business software analyst and BASDA founder, said: "They can compete but why would they want to?"
Keeling conceded that the biggest disappointment surrounding iXBRL was that software vendors had not provided "a single interface with Excel".
Sage estimates that there are approximately 5,500 tags under UK GAAP, and 12,000 under IFRS.
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