Tax Tuesday – Why should you Validate Tax Reports?
Why is this important?
Governments are increasingly standardizing digital business reporting tax processes using XBRL as technology specifications. This creates an efficient and transparent system and enables higher quality in the tax reporting process. Within this tax reporting chain entrepreneurs, financial experts and accountants will have to work with Digital Business Reports formatted in a more complex and user unfriendly format. This is due to XBRL being a machine readable language that uses XML as a formatting language. XBRL is a technical technology which requires its own audit and control processes.
How do you validate these Tax Reports?
Using SemansysNext, specifically the Validation Module which is capable of validating a report in various ways including technical, content, and filing rules such as Tax requirements. The module will support any kind of report validation including custom validation based on specific rules. Using validation will reduce the chances of an error filled tax report being submitted and ensure users can address errors. Validation is a key tool for SMEs, enterprises, accountants, auditors, and other users for ensuring their XBRL reports don’t get rejected by regulators due to technical or filing errors.
Stay tuned next week for the third article in our Month of April series ‘Tax Tuesday – How to Render Tax Reports?’.
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