Tax Accounting Insights November 2009

 

Thomas Brown CPA P.C. Presents  

 

Tax Accounting Insights

 

Tax Issues Continue to Cause Material Weakness and Restatements

 

Leading Causes of Tax Material Weakness

1. Lack of Resources
2. Insufficient or lack of provision review
3. Compliance rather then provision driven mentality
4. Spread sheets outdated and not integrated
5. Lack of education

Steps to Correct

1. Increase staffing
2. Bringing in outside experts
3. Enhance training
4. Improve review function
5. Technology improvements
6. Process improvement
7. Create new positions such as the Director of Tax Accounting 

Strategies for Success

• Accelerate the review of Tax Accounting Issues on an interim basis to reduce year end work being performed.
• Evaluate interim process to reduce quarterly work:
• Replace full quarterly provision with one that forecasts the effective rate.
• Review Discrete items with external auditors and internal management to reduce year end surprises.
•  Embrace technology to improve data collection and leverage resources to save time and reduce errors.

• ·       Resolve return to provision true up issues as early as possible.

 

About Thomas Brown CPA P.C.

Thomas Brown CPA P.C. is a consulting firm which provides cost effective outsourced FAS 109 solutions and consolidated return preparation.   

 

We help our clients get through the difficult task of preparing quarterly and annual FAS 109 tax provisions and allow them to have a greater focus on quarterly and year end financial statement preparation. 

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