Year End Tax Reporting Challenges
14 January 2020
If you have a 31 December accounting reference date, we imagine you will now be in the throes of your tax consolidation/year end reporting process. We hope it’s going well!
However, our experience is that around 73% of mid-sized businesses have a process or a supporting technology approach which makes this difficult. Long days, late nights, weekend working etc. are just symptoms of those difficulties.
Of course, now is probably not the time to be looking at what you can do better - you need to get to your numbers. However, once the ‘dust has settled’ on this years’ tax reporting process, please do talk to us. We can help.
At BDO we have recently upskilled our tax reporting process improvement capabilities. We’ve always had the IFRS accounting skills to deal with those sticky tax complexities, but we now have an experienced team of specialists who can help you assess both what you do (your processes), and how you do it (your use of technology).
They can advise you:-
- What best practice looks like,
- Where you sit vs. your peers,
- How others deal with the types of challenges that face you as an organisation,
- Where the market is, and what we are seeing in terms of change – what the market is likely to look like in 18 months or 2 years, and
- What practical steps you can take to make the entire experience less painful.
Out specialists can ‘right size’ any suggested enhancements to meet your objectives and help you build a strategy to make things easier, reduce risk, and let you focus on adding value within your business.
Five things you should try to capture now
- Take a note of the number of different sources from which you receive data.
- Think about the nature of the sources you’ve just identified (are these emails, do you have direct access to finance systems, do you receive trial balance feeds, do you utilise Excel add-ins or receive completed calculations from others?).
- How much work is required to arrive at your accounts tax note once you’ve received the data? What is your prepare vs. review time ratio?
- Do your financial numbers move once you’ve started your tax calculation process, and do you always find out in time what has changed? What is the impact of those changes on your work?
- Do you feel like your entire tax reporting world is managed in Excel?
Capturing this information now, whilst in the midst of the process will help focus the discussion when you have the time to sit down with our team and reflect on the experience.
Once you have completed your year-end process, please get in touch to arrange free 1:1 session with our tax process and technology team to help make next year’s process less of a challenge.
Business Edge index 2020