A cost-effective XBRL solution for small practices

Posted by pdt7464 PM | on Sat, 13/03/2010 - 08:07 894 7 comments | report

For several years now I have been using my own accounts preparation and corporation tax return application in Excel. I first started using spreadsheets for accounts prep in 1981 (Visicalc) then moved through Lotus 1-2-3 and onto Excel. My applications have more hours invested in them than it took to build the pyramids so I was slightly miffed when I realised that next year I would no longer be able to submit the accounts, computations and CT returns that print automatically from Excel. I'm afraid that the thought of paying for some of the excellent, but expensive, commercially available packages, or re-keying data into the HMRC software sent me into a depression. As I consoled myself with a strong mug of tea from my favourite mug I started to feel the overwhelming spiritual influence of St Ledger (the patron saint of Accountants). My favourite from my collection of "accountant mugs" states "You Don't Scare Me I'm an Accountant". As I gazed at the mug I realised that I should not just accept the obvious solutions of expensive commercial or HMRC software, but do something about it and write my own. With the help of an old friend and client, who is an IT consultant, I have developed a new back-end to my Excel package that automatically prepares a file for submission to HMRC. The file passes the validation checks required by HMRC on their software developers testing service. I am now considering developing this into a low-cost alternative to the current accounts and tax packages aimed at the sole practitioners and small practices. My questions (finally) are:

Do people in the target market think that there is a need?
Would anyone be prepared to help with beta testing?

Any comments either on this site or directed to damian@pdtracey.co.uk would be welcomed.

Comments

Always

cymraeg_draig | Sat, 13/03/2010 - 10:43 | Permalink

There's always a need for alternatives to the "market leaders" who make their living by selling second rate products at first rate prices.

We have our own book keeping/VAT spreadsheet which many of our clients use. Cost to the client? £0.

Benefits to us - it slots straight into our accounts preparation spreadsheets with automatic annual reports (sales graphs etc) and automatic trial balance.

There is a big need.

Anonymous | Sun, 14/03/2010 - 09:26 | Permalink

For the small user. I have looked into it and i can not think of any'small user' package that is availabe at the momnet.

I use VT and am expected to wait until December this year ( was march 2011 before i raised this issue) for it to release its ixbr version.

If you produce a simple and easy to use product I will certainly go for it. You need to be careful because in 2 to 3 years time i expect all the accounts packages will be up to speed and your market may be limited. on the other hand there are many who use self generated excel/word templates .

Go for it

zebaa | Sun, 14/03/2010 - 17:25 | Permalink

I, like the other posters, think it a good idea. At the moment there seems to be a great deal of apprehension about the new format. Now it the time, strike while the iron is hot.

Good luck

petersaxton | Sun, 14/03/2010 - 20:53 | Permalink

But I don't see how you will get sufficient sales.

How cost effective is cost effective?

shezhamill | Mon, 15/03/2010 - 13:18 | Permalink

Damian,

A Simon Hurst's article has shown, this is not a simple issue. All of the software vendors are investing thousands of man hours to this complex and involved project, with reports of one vendor investing £4m in a solution. It seems as if iXBRL has been a band wagon that all kinds of vendors have jumped on to try and enter an accounts production market. You seem to be missing the point....how valuable is your time... and that of your clients? How many man hours are you going to invest for what return?

Most of our clients pay around £400 a year to use the same accounts production system as most of the top 100 firms (including 2 of the big 4). Dare I suggest that even if you sold something for £200 it could not hope to be as automatic or free from errors as CaseWare or any of the other major systems. Sometimes trying to be cheap is a false economy. If ever this were true then iXBRL is it.

Good luck though....

XBRL Solution

Anonymous | Mon, 15/03/2010 - 14:01 | Permalink

Hi Damian

Like you, I have been keeping an eye out for something which will suit me for XBRL, 60 odd CT600 clients but hoping to increase this over the next few years. I use Excel and I have invested a hell of a lot of time over the years so it's not just the cost of moving to a new product but the loss of work (not to mention the loss in flexibility).

I don't like the thought of having my hand forced on this issue and certainly don't like the thought of my data going overseas for someone to tag for me. Am going to wait a few months and see what comes out of the woodwork but this http://www.accountingweb.co.uk/partners/press/taxcalc-partner-arkk-provide-i-xbrl-solution-excel-users looks like a possible solution? (I'm a current Taxcalc user)

I think the point which has been made above is true, software houses have the development techniques and will also provide the support - would you be able to do this? As well as being able to stick with my old faithful Excel friend, hopefully this also means that changes such as the joint filing with CH will be dealt with without me having to have a headache!

BoD

my opinion

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