Note to Self - effective year-end planning within the tax function

The year-end processes are underway across most companies during the month of January and despite COVID-19, 2021 brings little change in that regard - business must go on.

In each year-end process, tax accounting is often one of the last steps and is dependent on financial figures being finalized. Some companies do a complete tax calculation as per October or November figures to allow time for delivery of an accurate and prompt calculation for use in the annual financial statement. Being last in line often means that there is a tight deadline to deliver, and that can impact accuracy and quality.

Over the years we have heard a number of companies ask for good year-end processes or effective use of technology, etc. However, a recommendation for such can be very dependent on the "As-Is" processes. Therefore it is a good idea to have a close eye on your current process and knowing what works and what doesn't.

Note to Self

When out of year-end it can sometimes be difficult to remember all of the steps and "back and forth" you had during the year-end process.

Therefore, Bart Janssen is in the below "Tax Tip of The Week" suggesting that you do a "Note to Self" during the current year-end procedures. Through such a note you are documenting your learnings and experiences whilst in the procedure. It will allow you to - after year-end - identify opportunties for change/optimization and be more specific on what impact you will achieve during the changes.

A note - and then what?

You should look at the note approximately 1 month after finishing your year-end procedures and evaluate further on those that you think have potential for amendments or which can be improved prior to the next year-end process.

Note it is recommended to start such a process before the summer, because as we all know: change takes time.

If you would like to look at technology implementations such as Oracle, Thomson Reuters OneSource, Longview or similar, then you might have a longer lead time to get it implemented and secure your business case - but it can all be started from that little "Note to Self".

Good luck in your year-end process!

Want to join the discussion?

Tax Tip of The Week is a weekly tip launched on Fridays by Deloitte's Tax Management Consulting team. Stay tuned or join the discussion on LinkedIn here.

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