red moon top 10 reasons why erp not for tax
DESCRIPTION
See why SAP, Oracle and other ERP asset modules may not work for the tax department. Tax Pros have shared their experiences and are included in this eBook!TRANSCRIPT
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Reasons why your ERP Fixed Assets Module might not work for tax…
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In theory, using your ERP or financial package fixed asset subsystem for tax
should be your best option.
I know. They’ve told you it will work for tax.
But will it?
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OK…Here are the TOP 10 reasonswhy your ERP fixed assets module might not work for
tax!
(as shared by your tax colleagues out there)
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Think about it…they were built for Accounting and Finance. NOT for
tax.
#1
In fact, ERP vendors do not have tax technical folks on staff.
All tax must be coded in by consultants.
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There are and will continue to be tax law changes every year…
#2
This will require coding changes each year.
ERP is a mission critical application, IT usually makes tax wait to do updates.
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Tax needs an unlimited amount of different book calculations and
special calculation needs
#3
• Federal Tax (w/bonus depreciation or without)
• AMT• ACE• E&P• State Books• Canadian and other Foreign
Books• Different calendars (52/53
wk. years, short yr.)• Different basis across books
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Tax doesn’t always have access to the ERP to modify asset details
#4
• May get audited and need to adjust basis
• May need different GAAP to Tax placed in service dates
• Current and prior year adjustments
• Changes to tax classification
• Modify life
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Tax sometimes needs to run assets as if they were calculated based on different rules as of their placed in
service date
#5
“Life to date calculations”
Ensure proper historical year by year tax treatment
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Tax needs to plan!
#6
“What if” scenarios
•Take bonus/ don’t take bonus…
•Retirements•Splits•Cost Segregation
•481 Adjustments
• Acquisitions• Mergers• Divestitures
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Tax has to report single, consolidated, and subconsolidations as well as by
business unit, location, etc.
#7
Need to be able to report easily with any kind of structure and
grouping
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Tax must see all asset details and history…and report on prior years!
#8
Most ERP’s roll forward year to year and prior depreciation
expense becomes accumulated
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Tax needs to reconcile from book to tax! Ease is essential.
#9
Not offline or by using Excel
One click reconciliation reporting
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Tax needs forms and many reports! Easy, quick and able to export to Excel.
#10
Reconciliation Roll forward Transactions Depreciation Tax Reports State Reports Bonus Depreciation Reports Audit Reports And on…and on…and on…
One click reconciliation reporting
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Don’t think you don’t have an alternative solution!
• Take a serious look at your options
• Don’t just take people’s word for it
• Investigate further… Do your
homework!
• Other tax professionals will share their
experiences!
• Don’t “sell” the tax department short.
• There are third party solutions that
can make your life sooo much easier!
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Thank you for reading!For more information, contact me at:
Kelley [email protected]
941-379-7108
www.redmoonsolutions.comblog.redmoonsolutions.com
www.twitter.com/redmoonsolution