XBRL Filing Singapore: What SMEs Should Clarify with Accountants Early

For many Singapore SMEs, XBRL filing can be a daunting task, especially when it’s time to work with accountants or external advisors to ensure compliance. To avoid delays, rework, and last-minute stress, it’s crucial to clarify key aspects of the XBRL filing process with accountants early.

Here’s a breakdown of what SMEs should discuss with their accountants well ahead of filing time.

1. Understanding XBRL Taxonomy and Classification Requirements

XBRL filing involves mapping your financial data to a specific taxonomy, which is a set of standardized tags and categories. This taxonomy can be complex and may change from year to year.

What to clarify:

• Are there any new changes or updates to the XBRL taxonomy that could affect our filing?
• How do we ensure our revenue, expenses, assets, and liabilities are tagged correctly according to the latest taxonomy?
• Are there specific classifications that we need to be aware of based on our business activities?

Why it matters:
Incorrect taxonomy mapping can lead to validation errors or rejections during filing. Clarifying these details with your accountant helps ensure your financial data is categorized correctly, reducing the risk of filing issues.

2. Data Consistency and Alignment Across Statements

XBRL requires that financial statements are consistent and aligned, both internally and across years. Small discrepancies between reports (e.g., income statements, balance sheets, and cash flow statements) can trigger validation errors.

What to clarify:

• Are there any discrepancies between our internal reports and statutory financial statements that need to be addressed before filing?
• How can we ensure our year-to-year data consistency (e.g., classification of expenses, presentation of assets) across all required documents?
• Should we make any changes to our chart of accounts to ensure consistency?

Why it matters:
Alignment issues can delay the filing process and create unnecessary rework. Discussing these details early ensures a smoother filing experience and prevents last-minute corrections.

3. Reviewing Disclosures and Notes Requirements

XBRL filings also require specific disclosures and notes, which may vary depending on the size of the business, industry, or specific circumstances.

What to clarify:

• Which disclosures are required for our business? Are there any additional disclosures needed this year (e.g., changes in business structure, related-party transactions)?
• Are we missing any essential notes or explanations for specific items (e.g., long-term liabilities, contingent liabilities)?
• Are there any new regulatory requirements for disclosures that we need to include?

Why it matters:
Omitting required disclosures can lead to filing rejections or ACRA scrutiny. Clarifying these requirements with your accountant ensures you’re fully prepared for compliance and avoids surprises at filing time.

4. Ensuring Accurate Reconciliation of Financial Data

Inconsistent or incomplete reconciliation between your internal records and external reports can create discrepancies that disrupt the XBRL filing process.

What to clarify:

• Are our internal financial records reconciled properly with external statements, such as bank statements and tax returns?
• Are there any discrepancies between our trial balance and financial statements that need to be addressed before XBRL tagging begins?
• How do we ensure that our intercompany transactions, if applicable, are accurately reconciled?

Why it matters:
Accurate reconciliation is essential for smooth XBRL filing. Unresolved discrepancies at the last minute can lead to delays and missed filing deadlines. Discussing these points early allows you to address potential issues before the filing process begins.

5. Preparing for Any Changes in the Business Structure

If your SME has undergone changes such as mergers, acquisitions, restructuring, or changes in ownership, these need to be reflected in your XBRL filing.

What to clarify:

• Have there been any structural changes to the business this year (e.g., new shareholders, changes in directorship, or acquisitions)?
• Do we need to make any specific adjustments or filings to reflect these changes in our financial statements or XBRL tagging?
• Are there any additional disclosures or regulatory requirements due to these changes?

Why it matters:
Not accounting for structural changes correctly can lead to compliance issues or even penalties. Clarifying these aspects with your accountant ensures that any necessary adjustments are made and avoids future complications.

6. Preparing for Audit and Review of Financial Statements

Before you can even begin your XBRL filing, your financial statements need to be finalized and reviewed (and possibly audited) to ensure their accuracy.

What to clarify:

• When should we schedule our final financial review or audit to ensure we have ample time for any last-minute corrections?
• Are there any major audit issues that could affect our filing or require additional work?
• What is the deadline for finalizing our financial statements for XBRL tagging?

Why it matters:
Delays in finalizing your financial statements can push back your filing schedule. Early discussions with your accountant help ensure that you have enough time for review and that there’s no last-minute rush.

7. Identifying Areas for Automation

Manual XBRL filing processes can lead to errors and require more time for corrections. There are many accounting systems available that can automate parts of the XBRL filing process.

What to clarify:

• Are there any automated tools or software that can help streamline our XBRL filing process?
• Can we automate data mapping to the XBRL taxonomy to reduce the manual work required?
• How can we integrate our financial reporting system with the XBRL filing system to minimize human error and improve efficiency?

Why it matters:
Automating parts of the filing process reduces reliance on manual data entry, which can lead to errors. It also saves time and reduces stress, especially during busy filing seasons.

8. Understanding Potential Filing Penalties or Issues

Filing errors, late submissions, or missing data can result in penalties or other compliance issues. Discussing the consequences of non-compliance can help SMEs stay on top of their obligations.

What to clarify:

• What are the penalties for missing the XBRL filing deadline, or for submitting incorrect data?
• Are there any exemptions or extended deadlines available to us?
• How can we avoid common filing mistakes that lead to penalties?

Why it matters:
Understanding the risks involved ensures you’re aware of the potential consequences and are motivated to prepare in advance, reducing the likelihood of costly mistakes.

Conclusion: Clarity Reduces Stress and Rework

XBRL filing doesn’t have to be a stressful, last-minute scramble. By clarifying these key points with your accountant early on, you can ensure that your financial data is ready for submission — with fewer revisions, less confusion, and more confidence.

By using tools like ccMonet, you can automate parts of the XBRL process and maintain compliance year-round, ensuring that the filing process is smoother, faster, and far less stressful.

👉 Learn how ccMonet helps SMEs streamline their XBRL filing process and work more efficiently with accountants at https://www.ccmonet.ai/

‍