We agree that effective and efficient calculations are of the utmost importance in global provision reporting. We firmly believe that to truly optimize the provision process, complete integration between the provision system and underlying corporate financial system is the most critical element. In addition, integration with data collection and compliance can produce overall efficiency in corporate tax processing. To make this belief a reality for our clients, we offer eTaxProvision as part of the integrated suite of Tax Series.

Tax Series eTaxProvision module is a complete provision solution designed to handle global provision calculations. Its user-friendly interface lets clients focus on more than just domestic issues. In addition, its seamless integration with other tax cycle function tools and enterprise reporting products saves clients both time and frustration, and reduces data entry errors. Clients can use this technology as a stand-alone solution or as a full tax-cycle integrated solution with Tax Series’ data collection, compliance, planning, and audit tools. Its accessibility allows clients to work from anywhere in the world, at any time of the day. The following list details additional benefits and features of eTaxProvision that make it a unique tax technology solution.

eTaxProvision provides:

Accurate Calculations

• Calculates current and deferred provision at the federal, state, and foreign level
• Provides a rate reconciliation report with the ability to reconcile to the U.S. tax rate, the entity's statutory tax rate, or any other statutory tax rate
• Computes FIN 48 disclosure amounts by tracking uncertain tax positions
• Provides both simple and complex FIN 48 interest computations
• Calculates state income tax provision using either a blended marginal state tax rate approach by entity, or a more detailed state-by-state approach
• Re-measures deferred tax balances for all jurisdictions, based on future enacted tax rates for a span of up to ten years, and posts the resulting rate change adjustment to the deferred tax provision
• Calculates the currency translation adjustment on deferred tax balances resulting from foreign exchange rate fluctuations between periods
• Calculates permanent and temporary return-to-accrual adjustments
• Produces a tax basis balance sheet at the general ledger or summary level
• Aggregates deferred tax items on the footnote report based on user-defined footnote groupings
• Computes the effective tax rate for annual/quarterly tax periods to assist with interim reporting requirements under APB 28
• Aggregates effective tax rate reconciliation items on the rate reconciliation report based on user-defined or system-defined rate reconciliation groupings

Comprehensive, Customizable, User-Friendly Reports

• Details the calculation of current, deferred, and total tax provision
• Displays a period-over-period rollforward of gross and tax-effected deferred tax balance
• Provides a rate reconciliation report with the ability to reconcile to the entity’s statutory tax rate, U.S. tax rate or any other statutory tax rate
• Offers a footnote report with detail of the income tax provision by jurisdiction, aggregation of ending deferred tax balances by user-defined groupings, and a breakdown of current and non-current ending deferred tax balances
• Displays a tax basis balance sheet
• Provides a current liability rollforward report
• Produces HTML, Microsoft® Excel®, and Adobe® Acrobat® formatted reports

Efficient Processing

• Automates book-tax adjustments at the general ledger level or standardized chart level
• Grants users comprehensive import capability with built-in validation
• Contains efficient balance management feature that allows transfer of data between provision and compliance
• Provides user-definable workpapers
• Allows comprehensive activity tracking
• Provides a mechanism for the recording and reporting of current year activity, including true-up, audit, deferred tax write-off, and purchase accounting
• Provides user sign-off and workpaper locking
• Allows for flexible multi-entity multi-jurisdiction calculations
• Grants global participant access to expedite the provision process
• Provides “what-if” capability using case management
• Integrates with our Web-based global data collection module to facilitate global provision reporting
• Integrates with the Tax Series compliance module so that compliance is substantially complete based on provision data
• Automates return to accrual reporting and analysis

Transparency and Enhanced Management Capability

• Allows users to enter trial balance and book-tax adjustment data at the general ledger level so that account numbers used in workpapers are synchronized with the provision system
• Permits general ledger level detail to be summarized into a financial consolidation level to ease reconciliation between provision and financial reporting systems
• Lets users collect general ledger level trial balances using our Web-based data collection module
• Provides a clear audit trail for all calculated balances, deferred tax balances, and true-up balances
• Supplies easy-to-use workpapers to make posting and reviewing of adjustments easy
• Allows users to navigate from workpapers to source level adjustments
• Provides user-defined balance types to track different types of provision adjustment
• Allows users to track tasks using a built-in task tracking tool to assist with internal controls in the provision process (SOX 404), including step-by-step preparation tasks, and preparer and reviewer sign-off
• Provides a repository to maintain supporting documentation