Performance Management Technologies for Tax A blueprint for success

Your challenge Most tax departments experience challenges in collecting data for tax planning, consolidation, and reporting purposes, and increasingly require more than spreadsheet tools. Indeed, over-reliance on spreadsheets has often been linked to control weaknesses in data and technology associated with the tax provision process. Without adequate controls in place, reliance on spreadsheets can lead to mistakes due to incomplete, inaccurate, or altered data. Additionally, many of the ERP accounting systems in place were not designed to effectively capture data at a true tax legal entity, which is required for tax lings. This limitation severely reduces efciencies in the tax department process due to unproductive time spent on manual analysis, manipulation of book data, and reconciliations. Our approach: Driving systemic tax value by leveraging performance management technologies (PMT) The increasing integration of performance management technologies (PMT) applications into ERP platforms is providing organizations and their tax departments new ways to monitor, measure, and manage business performance. PMT applications such as Oracles Hyperion Financial Management (HFM), Oracle Hyperion Financial Close Management and Oracle Hyperion Disclosure Management and Thomson Reuters ONESOURCE Workow Manager (OWM) have provided tax departments new opportunities to enhance the quality of data tax departments now get. These enhancements can be accomplished without a complete re-implementation or upgrade of an ERP system, leaving the systems required for management reporting intact. Implementing these PMT systems, however, can require specialized knowledge, skills, and resources, especially in the tax environment. While PMT applications almost always draw from multiple data sources, their integration into an organizations ERP transaction system presents a signicant opportunity for the tax department to drill down into transactional detail and analyze root causes of anomalies in the business. The integration of PMT applications into ERP transaction systems also can enhance planning, budgeting, and forecasting for tax and other business purposes. Our tax PMT teams have the scale, scope, and capabilities to help you address your most complex information management challenges from record to report. Our services include: Analysis of current tax and nancial PMT systems and processes. This includes analyzing your current PMT processes, performing gap analysis between current

Are you leveraging the power of PMT tools to gain control over your organizations tax data?
As a stopgap, tax departments have often implemented and maintained ad hoc systems systems that are not necessarily supported by their IT departments or ERP platforms to accumulate data in the format and level of detail needed by the tax department. Meanwhile, senior management, IT, and internal audit have legitimate concerns about controls, standards, availability, architecture, scalability, security, and consistency of these ad hoc systems. Deloitte can help.

As used in this document, Deloitte means Deloitte Tax LLP, a subsidiary of Deloitte LLP. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries.

and future-state PMT processes, and developing change management and communications plans. We can also analyze your organizations ability to leverage existing PMT applications to support tax accounting and compliance processes. Design and planning for next generation PMT systems. We can help your organization explore ways to take advantage of the next generation of PMT systems, especially as ERP vendors integrate them more tightly into their ERP platforms. Support during implementation of PMT systems. These services can help your business turn its PMT vision into reality. Most PMT systems can be tax sensitized to address the following tax needs: Tax consolidation at a legal entity level. Enhanced tax sensitivity within the chart of accounts. A web-enabled tax data collection process synchronized with nance and other business functions. Enhanced tax workpaper automation using PMT tools reporting functionality to support tax analytics. Support for rapid deployment of core tax accounting and compliance systems. We use Deloittes tax PMT accelerator tools to help organizations launch core tax accounting and compliance systems on a timely and effective basis. Our tools also help tax departments successfully integrate tax software such as ONESOURCE Tax Provision, ONESOURCE Income Tax, CORPTAX Advanced Global Provision, CORPTAX US Compliance, and others. Our tax PMT teams understand what is essential to the success of PMT systems design and implementation, including information governance, clear business rules and metrics, executive sponsorship and tax and nance issues. Learn from our experience The ongoing integration of PMT into ERP platforms presents an ideal opportunity for organizations to reconsider their PMT approach and consider the following leading practices: Lay the groundwork for integration with tax processes. Enterprise PMT applications can help you derive greater return on investment in your ERP systems by providing clearer insights into various aspects of your business. Although the PMT technologies that have been acquired by ERP vendors may not yet be integrated

with those vendors other systems, there is good reason to believe that they will be. Planning for this integration will set you up for a sound approach now while sowing the seeds to reap even greater benets later. Design an approach that can adapt to changes. Even with the promise of greater integration, source applications and business requirements are constantly changing. While it is logical to anticipate that your PMT system will be integrated more closely with your ERP platform of choice, you should build into your initial architecture any requirements that include nonintegrated data. Look outside of your general ledger for tax data. PMT applications can and should go beyond nance to facilitate collection of unstructured tax and nancial data. Businesses are now leveraging PMT applications outside of traditional nancial reporting in tax accounting, compliance, planning, and forecasting to obtain a fuller picture of performance. Actively follow organizational strategic initiatives around PMT deployment. Tax is generally the last group thought of when it comes to making the decisions around PMT application deployment in the organization. The tax department, however, is one of the largest users of data, and the analysis conducted by the tax department generally is an item that can have a material impact on the nancial statement. Tax departments need to have a seat at the table during all phases of a PMT deployment project, such as vision, plan, design, build, test, and delivery, in order to enhance tax utilization of such applications.

The Deloitte difference At Deloitte, we take an integrated approach to PMT, combining deep technical and technology capabilities with extensive business experience to help organizations align their information management initiatives with their overall business plans. Our approach offers many benets, including: Quality tax accounting and compliance information that is timely, accurate, and consistent. Embedded controls that validate against external nancial reporting. Robust tax data collection that supports complex tax accounting as well as tax reporting for international, federal, state, and local purposes. Streamlined tax accounting and compliance workpaper analysis. A tax accounting and compliance PMT framework that integrates with leading tax provision and compliance systems. Support for more informed tax and nancial accounting decision-making in support of tax planning and compliance processes.

Migration from manual processes toward improved tax accounting transparency, controls, and tax compliance reporting processes. The ability to manage costs associated with tax information management and facilitation of tax planning execution. Deloitte also offers a range of services across tax, consulting, nancial advisory services, and risk management worldwide. Learn more about how Deloitte can help your tax department improve efciencies from data management to tax processes to use of technology at www.deloitte.com/us/movetaxforward. Contacts: Michael J. Johnson Deloitte National Tax EPM Leader micjohnson@deloitte.com +1 703 835 0204

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