From income tax provision to compliance and planning

More than just compliance

Gone are the days when tax compliance merely fulfilled its obligation. Today, it serves as a vital source of data, offering insights across the tax function and the wider business landscape. The depth of the data offers extraordinary benefits when harnessed across the organization.

We are witnessing significant changes in how organizations are reshaping their compliance operations to unlock value by revamping processes and adopting new technology. These changes involve streamlining work by transitioning towards a unified approach for tax return preparation, rather than handling it entity by entity, and harnessing the efforts and data from the income tax provision process. Let's delve deeper into each of these transformations.

Simplifying international tax compliance

Imagine streamlining the international tax compliance review process and leveraging tax data strategically across your organization. This is now possible with relatively simple technology and an innovative approach to compliance review.

Traditionally, international tax compliance review has been conducted entity by entity, involving the extraction of tax software reports and output. This approach is time-consuming and often results in inefficient and inconsistent review across multinational corporations. Additionally, tax filings require a laborious IRS review process and translations across multiple file sources.

By combining simple software technology with a new review process, tax data analysis, improvement, and filing become more efficient and effective. Additionally, this approach aligns with the increasing emphasis on bringing purpose to the tax compliance function, allowing organizations to leverage data for deeper insights and informed decision-making.

Better data leads to better results

Imagine if you could simplify the reconciliation of tax provision with compliance and ensure the accuracy of previous calculations. You can achieve this by initiating your compliance process during provision with robust, precise data.

Many organizations persist with outdated and cumbersome approaches to their income tax provision and tax compliance procedures. Instead of integrating the work and data from the provision process into compliance, they waste considerable time and resources revisiting and recalculating data already gathered during provision earlier in the year. This is often due to lingering concerns about the reliability of provision-calculated data.

Leading organizations today are using software solutions to improve their provision processes. The automation capabilities of these provision solutions can often be better leveraged to require fewer recalculations during the compliance process. An integrated income tax process enhances data accuracy in both provision and compliance, and thus streamlines the rework and subsequent reconciliations involved in the compliance process.

These innovative approaches can expedite compliance activities, mitigate risks, and achieve more tax-efficient outcomes. Moreover, they align with the renewed purpose of compliance, adding enhanced value throughout across the tax lifecycle by enhancing data availability and integrity throughout.

Revitalizing tax compliance

In the realm of taxation, organizations are undergoing various stages of process reforms, technological advancements, and staff development to enhance the value derived from compliance. Transformation strategies must be tailored to each organization's current status and desired objectives.

Maximizing value from tax compliance is a commendable aim, and many leading organizations have made significant strides in this direction. They understand that the purpose of tax compliance extends beyond mere accuracy and regulatory adherence. By enhancing integrity, efficiency, and integration within the process, tax compliance professionals can unleash actionable insights to benefit colleagues throughout the organization.