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Considerations for Tax
The 2020 year-end financial reporting season has arrived for calendar year-end companies. Execution of the close process will be different than in prior years as we move forward remotely. Tax functions need to work differently in order to execute effectively and generate ‘audit ready’ results in a virtual environment.
The fast-paced environment has made keeping up with tax accounting and legislative developments more difficult than ever before. Seek ways to stay connected to developments in real-time – such as webcasts, tax technical insights and reference guides.
Anticipating issues enables the Tax function to quickly and effectively address changes as they arise without taking too much time away from the core process execution and review.
Leveraging a risk-based approach to standardize global processes, prioritize tasks and facilitate review can help drive efficiency and improve quality of results while managing overall financial statement risk.
Provide a clear understanding of requirements and deadlines to Tax staff and broader stakeholder groups to help manage expectations.
Developing a consistent approach for execution and review procedures (and related documentation) across all areas of Tax can alleviate pain points and lower risk of potential misstatement.
Take time to review your tax technology ecosystem and embed needed updates. This will save significant time on the front end and better enable Tax to hit the ground running.
Adopt a ‘one company’ approach to your overall tax strategy and risk framework, recognizing that additional transparency requires clear and effective disclosures.
Impromptu touchpoints, such as ‘water cooler’ conversations, are not easy to come by in a remote environment. Making adjustments to your communication methods and frequency can position Tax to be more efficient and effective when executing remotely.
As businesses look to run ‘leaner’, Tax functions should revisit their current state and build-in sustainable solutions for long-term success.