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Choosing the Right Tax Data Management Option in Corptax to Save Time and Minimize Error

April 12, 2016

By Anthony DiGiuseppe, Senior Tax Manager

Managing data in the most efficient manner is of the utmost importance in today’s technology-driven tax environment. Corptax is a powerful tool that can be used to manage your tax data both in and out of the system. The software is dynamic in that it presents many options to transfer your tax data into the software. The option you chose can mean the difference between days, weeks, or even months of time that can be better spent managing other vital aspects of the tax function.

A user’s Corptax knowledge will dictate how efficiently he or she can manage their data in the system. None of us want to approach a compliance process which involves manually entering information into the system. Besides the obvious excessive amounts of time spent using this method, manual entry always leaves room for human error.

How to Calculate Taxable Income Based on User-defined Logic
(Hint: Use Automated Adjustments)

One of the most effective and accurate methods for data entry is Automated Adjustments. This approach is an excellent method because it allows the system to calculate taxable income in an efficient manner based on logic defined by the user.

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As depicted in the illustration above, the availability of accurate general ledger data is crucial when initiating software automation. More often than not, tax professionals spend most of their time working with the accounting department to specify how tax sensitive account information should be retrieved out of the financial reporting system.

Choose Your Automation Model

Automated adjustments within Corptax can be setup through one of the following models:

  • Reversal (M&E, Fines, Club Dues)
  • Change in Balance (Reserves, Accruals)
  • Reverse Book/Record Tax (Depreciation & Amortization)
  • Manual (Any other adjustments not included above)

One of the benefits that users find most appealing is the ability to post tax adjustments in batches. This allows preparers to review all adjustments to taxable income and batch update with one click of a button.

The end result is a workpaper that displays the logic behind the calculation and informs the user which accounts (both Corptax and general ledger) were used to calculate the adjustment. This workpaper can be easily transferred to MS Excel, Word, or PDF and is used for audit support and discussions with the IRS.

Remember These Tips and Tricks

  1. Corptax enables users to reverse the last posting
  2. Users can access the automation setup directly from the “Book to Tax” screen as well as the adjustment setup screen
  3. For tracking purposes, users can mark an adjustment as Not Started, In Process, or Final
  4. Batch posting of automated adjustments is possible through the book/tax screen
  5. Adjustment workpapers can be easily exported to Excel or PDF
  6. Attachments can be added to workpapers

Automation is proven to increase speed, efficiency, and accuracy in many applications. Use it in your tax department!

Learn more about our Tax Automation Solutions

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