Spending more time on tax provisioning than you should?
Tax expense can account for as much as 40 percent of a company’s total expenses. The collection of tax-related data and calculation of tax expense and deferred tax accruals can be one of the most cumbersome processes of the month-end close.
These processes can be further complicated by organizational growth, especially on an international scale, with the introduction of foreign tax provisioning.
Typical accounting systems alone do not address the complexity of tax provisioning and collection of tax data. As a result, companies frequently turn to standalone spreadsheets and emails to manually gather and report on relevant information.
Although spreadsheets, due to their inherent analytic power, can handle the calculation of tax provisions, they cannot be centrally managed. As a result, it is difficult for organizations to track and validate the data collected from individual entities and difficult to aggregate results for reporting.
Furthermore, spreadsheets do not offer audit trails or official workflow processes; nor can they notify users across business units, turning your tax provisioning process into a mess of disparate spreadsheets.
How Vena Helps
With Vena, you can effectively collect tax-related data and calculate tax provisions and accruals. Vena streamlines the tax provisioning process using Excel combined with a state-of-the-art database and a sophisticated process manager.
- Tax rates and rules are centrally managed for proper control and accuracy
- Data is collected from each tax entity with complete workflow visibility
- Current and deferred tax data is automatically calculated and summarized
- Variance and trend analysis can be applied to reports for meaningful insights
Vena for Tax Provisioning = Unmatched Structure and Control
The benefits of using Vena for tax provisioning go beyond the computation of monthly and annual expenses and accruals. With Vena, you can also:
- Collect book and tax data from general ledgers and other critical systems
- Automate the calculation of both permanent and temporary differences
- Automate the calculation of income tax expense, income taxes payable and deferred tax accruals
- Create tax reports for each entity, including an analysis of deferred taxes, tax expense and payables calculation, and consolidated tax statements for your entire organization
- Leverage a sophisticated workflow engine to track the review and approval of all inputs and changes
- Receive automatic email notifications about upcoming tasks and due dates
- Leverage a comprehensive audit trail to date-, time- and user-stamp changes to data or structures
Harness the Power of Excel Coupled With a Secure, Centralized Database
With Vena, you and your team can use the familiar Excel interface that all accountants and finance groups know and love - allowing for quick ramp ups and fast implementations.
- Connect your data and templates to a central, secure in-memory database
- Leverage a flexible workflow engine and robust audit trail to ensure proper controls and approvals are in place
- Leverage Excel’s powerful formulas to calculate income tax expense, income taxes payable, deferred tax accruals, tax roll-forwards and key metrics. That’s how Vena works – it utilizes what you are already familiar with, automating your tax provisioning calculations and processes within a single, unified solution that can be used throughout your entire organization
- Save time and money, increase productivity and reduce the risk of error. You and your team will have more time to analyze data and get the necessary reports into the hands of those who need it most, quickly and efficiently