2023 Marcum Year-End Tax Guide

THE MARCUM YEAR-END TAX GUIDE 2023 69

As the proposed regulations are finalized, it’s the perfect time to review current processes and consider implementing or upgrading your technology to automate income tax disclosures. Below is an example of an efficient income tax disclosure life cycle.

An efficient income tax disclosure lifecycle will make the companies process data a lot simpler while allowing for more time and resources to be used for management review or resources spent elsewhere. This is achieved by: Seamless Data Migration: Proper ERP implementation will allow for management and categorization of data to promote ease of delivery of such data, which will enable the company to achieve a seamless data transformation. This will save the company resources that would otherwise be spent digging through data and will allow the company to spend more time looking at the bigger picture. Data Transformation & Standardization: Using automation tools and trusted tax software, companies can rely on technology to transform their data based on stan dardized fields. This allows more time to be spent in management review stages and keeping up with the latest

rules and regulations. Depending on the software, companies can rely on the software to adopt the formatting of the income tax disclosure for the company. Real-Time Disclosure Updates: It’s important that companies have real-time disclosure updates during the provision process so there is ample time to discuss any unusual or material changes with the audi tors in a timely matter. Companies can address issues more promptly with automated, data-optimized processes. Audit Ready Disclosures: Using tax provision software and automation, companies can build much more reliable SOX controls, increasing shareholder confidence and in creasing audit reliability. HOW CAN MARCUM HELP It’s essential to have a trusted advisor who can guide you through the changes and either create a new tax process, build upon the current

approach using market-leading trusted technology, or create custom technology to meet the company’s needs. At Marcum, our first step is to review the current tax system and processes used to make sure that we can efficiently compile the data necessary to meet the disclosure requirements. Our technology group has been working with our tax teams to significantly improve accounting and tax processes for our clients, often customizing solutions to work with client-specific software. Some of the processes include the usage of OneSource Tax Provision (“OTP”), OneSource Income Tax (“OIT”), Alteryx, Excel Macro, and custom to the client API. Our automated process increases the efficiency and accuracy of the data. This allows Marcum and our clients to spend more time on technical analysis and tax planning strategies and less time on data review.

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