Optimizing the Tax Provision Process


It is difficult to read a business article these days that does not cover the benefits of automation. What to some seems like a blessing to others seems to be a curse. As accountants, we often shy away from change, thinking that it will take more time to implement an automation solution than the efficiencies gained.

But in this world of constantly evolving tax rules, automation is a necessary tool to assist accountants in preparing an accurate tax provision. The tax provision process is one of the largest sources of material weakness. This is obviously one of the last things that any of us wants for our clients (or for our own sanity).

Enter TaxProvision.net

TaxProvision.net was created by a group of accountants who were tired of having no solution to automating the tax provision process. Our clients are like yours – some very complicated, all very budget-conscious. The two options that we had as outsource tax preparers were Excel, which was riddled with possibility for manual error, and the “big dog” software companies, who planned to charge a hefty price and leave the accountant out of the process.

The tipping point was Tax Reform. When Tax Reform happened, all bets were off with our clients’ Excel-based reporting packages. Add in the complications of GILTI, FDII, BEAT, and many other new rules, and several of our clients’ Excel packages just completely shut down, so riddled with circular references that there was no way to unravel the mess.

Our firm surveyed numerous companies and accountants alike and tried to understand their “wish list” for an automated tax provision solution. Some of the most common wishes were: cloud-based, SOX compliant, cost effective, simple to learn, consistent workpaper format. What we ended up with (after 18+ months of development, pilot, and testing) was a system that is extremely sophisticated but looks and feels just like an Excel-based package.

How Will My Tax Department Respond to the Idea of Automation?

Based on the feedback that we receive, the tax department at all levels feels a sense of empowerment with TaxProvision.net. It is satisfying to know that controls are in place, supporting workpapers are created, and a reporting package is created that is auditable directly in the system. Our users say that they are happy to be able to spend more time on analysis, and less time trying to figure out why Excel (or the other software systems) have unexplained out of balance issues.

In essence, TaxProvision.net makes a tax department more valuable. It allows the tax department to “upskill”, to get away from manual tasks and focus on areas that will save time and money, and provide challenging opportunities for growth.

What About Interim Reporting?

TaxProvision.net is the only system that fully integrates interim and annual reporting, and calculates interim provisions based either on a FIN 18 or a full provision approach.

View a Demo of TaxProvision.net

We are pleased to be able to offer a demo to the Latino Tax Pros community on March 5. We hope you will learn about the benefits of the system for your team and clients.