How to Use Cloud Accounting Software for XBRL Filing in Singapore

Cloud accounting software is transforming the way businesses in Singapore manage their finances, and it plays a crucial role in ensuring accurate and efficient XBRL (eXtensible Business Reporting Language) filing for compliance with ACRA (Accounting and Corporate Regulatory Authority). As part of Singapore’s regulatory requirements, companies are required to file their financial statements in XBRL format to make them easily readable by both regulators and stakeholders.

In this article, we will explore how Singapore SMEs can use cloud accounting software to streamline and automate the process of XBRL filing.

1. Understand the Basics of XBRL Filing

What is XBRL Filing?
XBRL is a standardized format for the submission of financial statements. It enables financial data to be presented in a machine-readable way, ensuring that it can be analyzed easily by regulators, investors, and other stakeholders. ACRA requires companies to file their financial statements (balance sheets, income statements, and cash flow statements) in XBRL format as part of the annual return.

How Cloud Accounting Software Helps:
Cloud accounting software is designed to automatically generate financial statements and convert them into XBRL format. This reduces the time spent on manual data entry, minimizes errors, and ensures your filing complies with ACRA’s requirements.

2. Set Up Your Cloud Accounting Software for XBRL Filing

Why It’s Important:
Before you can use cloud accounting software for XBRL filing, you need to ensure your software is set up correctly. This means integrating all your financial data, including transactions, expenses, revenues, and assets, so that it can be accurately processed and converted into XBRL format.

How to Set Up:

• Integrate Financial Data: Connect your cloud accounting software to your bank accounts, invoices, and receipts so that all your financial data is automatically imported and categorized.
• Ensure SFRS Compliance: Make sure your software is configured to generate financial statements that comply with Singapore Financial Reporting Standards (SFRS), as required by ACRA.
• Set Up Automatic Updates: Ensure that your financial data is updated in real time so that you are working with the most current data when generating your XBRL filing.

How AI Can Help:
Cloud accounting software like ccMonet is powered by AI, which helps automate the categorization of financial transactions in real time, ensuring that your records are accurate and up-to-date. AI also learns from past transactions, continuously improving data classification and making the process faster and more accurate.

3. Generate Accurate Financial Statements

Why It’s Important:
XBRL filings require accurate financial statements, including your balance sheet, income statement, and cash flow statement. These statements form the basis of your XBRL filing, and any inaccuracies or missing data can lead to rejection by ACRA.

How to Generate Financial Statements:

• Automatic Data Categorization: Cloud accounting software automatically categorizes your financial data, such as sales, expenses, assets, liabilities, and equity. This ensures that your financial statements are complete and comply with SFRS.
• Run Financial Reports: Once your data is categorized, use your cloud accounting software to run financial reports (balance sheet, income statement, cash flow). Most cloud accounting platforms provide tools to customize and filter reports according to your company’s needs.
• Real-Time Financial Data: Since cloud accounting software operates in real-time, you can be sure that the financial statements generated are based on the most current and accurate data available.

How AI Can Help:
AI-powered tools like ccMonet automatically generate compliant financial reports (such as balance sheets, income statements, and cash flow statements) based on real-time data. The AI system ensures that your financial statements are accurate and free from errors, helping you stay compliant with ACRA.

4. Convert Financial Statements into XBRL Format

Why It’s Important:
Once your financial statements are generated, they need to be converted into XBRL format before being submitted to ACRA. Manual conversion is time-consuming and error-prone, and incorrect tagging of financial data can result in filing rejections or penalties.

How to Convert into XBRL:

• Automatic XBRL Conversion: Cloud accounting software with built-in XBRL conversion capabilities can automatically map your financial data to the appropriate XBRL tags. The software uses ACRA’s XBRL taxonomy to ensure that each element of your financial statements is correctly tagged.
• Generate the XBRL Report: Once your financial statements are tagged, the software will automatically generate an XBRL-compliant report that is ready for submission.

How AI Can Help:
AI-powered accounting platforms like ccMonet eliminate the need for manual tagging and conversion by automatically mapping your financial data to the correct XBRL tags. This reduces the risk of errors, ensures compliance with ACRA’s taxonomy, and speeds up the filing process.

5. Validate Your XBRL Filing for Errors

Why It’s Important:
Before submitting your XBRL filing to ACRA, it’s crucial to validate your data to ensure that it is free of errors. Even small mistakes, such as missing tags or incorrect data, can cause your filing to be rejected, leading to delays and potential penalties.

How to Validate:

• Built-in Validation Tools: Many cloud accounting software platforms include built-in validation tools that automatically check your XBRL filing for errors. These tools can detect issues such as mismatched tags, missing data, or incorrect categorization.
• Run a Test Submission: Some software platforms offer a test submission feature, allowing you to submit your XBRL filing in a simulated environment before the actual submission to ACRA.

How AI Can Help:
AI-powered tools like ccMonet use machine learning to automatically validate your XBRL filings for errors and discrepancies. The AI system continuously monitors your data, ensuring that the generated filing is error-free and ready for submission.

6. Submit Your XBRL Filing to ACRA

Why It’s Important:
Once your XBRL filing is validated, it’s time to submit it to ACRA. Meeting the filing deadline is critical to avoid late fees or other penalties.

How to Submit:

• Direct Submission: Many cloud accounting platforms integrate directly with ACRA’s online filing system, allowing you to submit your XBRL filing directly from within the software.
• Track Submission Status: After submitting your filing, you can track its status through the software, ensuring that ACRA has received and processed your filing.

How AI Can Help:
AI-powered accounting solutions like ccMonet not only automate the XBRL generation and validation but also facilitate direct submission to ACRA’s filing portal. This integration saves time, reduces the chances of errors, and ensures your filing is submitted on time.

7. Stay Updated with Regulatory Changes

Why It’s Important:
ACRA may periodically update its XBRL taxonomy or regulatory requirements, and it’s important to stay updated to ensure compliance.

How to Stay Updated:

• Automatic Software Updates: Cloud accounting software providers regularly update their platforms to reflect changes in regulations and taxonomies. Make sure your software is set to automatically receive updates.
• Follow Regulatory News: Stay informed about regulatory updates by subscribing to newsletters or following ACRA’s website.

How AI Can Help:
AI-powered tools like ccMonet are continuously updated to reflect the latest ACRA regulations and XBRL taxonomies. This ensures that your financial statements and XBRL filings are always up-to-date with the current requirements.

Conclusion

Using cloud accounting software to prepare and submit XBRL filings to ACRA is a game-changer for Singapore SMEs. By automating the process of generating, tagging, validating, and submitting XBRL-compliant financial statements, cloud accounting tools save time, reduce errors, and ensure compliance with regulatory requirements.

With AI-powered platforms like ccMonet, SMEs can streamline their XBRL filing process and focus on growing their business rather than worrying about compliance.

👉 Ready to simplify your XBRL filing process? Explore how ccMonet can help your business stay compliant with ease.

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