Automating the IFRS tax reporting and provisioning process

A large number of clients have told us they are looking to overhaul their tax reporting processes and systems. Particular pressures, such as increased auditor scrutiny and the move to IFRS, have meant that our clients want to use this opportunity to implement a dedicated solution to deal with tax reporting. However, the associated cost, time and resources required have often provided significant barriers to getting this done. With the Tax Reporting Cube, we have addressed this issue by providing a scalable solution suitable for a wide variety of clients, with a completely different approach to pricing and implementation timelines.

What is the Tax Reporting Cube?

KPMG is the only firm in the Big 4 to launch their own dedicated tax reporting software solution. It can be used for both year-end and interim reporting processes and includes the following main processes:

• Controlling – Helping manage and control the tax reporting process
• Provisioning – A consistent tax framework for all unit level calculations
• Reporting – Providing tax disclosures
• Accounting – Providing incremental journals

Further details are available on the functionality of the Tax Reporting Cube.

Credentials

As a software implementation team, we are flexible with the approach that any project takes. Whilst there are certain activities that we will be involved with (e.g. requirements analysis, initial user training) many of the activities can be completed either by our team or by the client tax team (e.g. initial group set-up, dry run of the system). This flexible approach allow our clients to pick and choose how involved they are in the implementation process, which allows them to minimise costs if required. To demonstrate the two ends of the spectrum:

Client A, FTSE 100 firm:

Undertook a full implementation of the tool, with high levels of involvement by KPMG. We significantly customised the tax packs and reports, as well as building in additional disclosure requirements. We rolled out a full training programme for all users globally, carried out testing and provided support through the first ‘live’ year-end. Implementation time – 10 weeks.

Client B, FTSE 250 firm:

Very ‘hands off’ approach, as their core tax team took responsibility for the roll-out. Minimal tax pack customisation required after basic requirement analysis and administrator training. Implementation time – 3 weeks.

"Using the Tax Reporting Cube has greatly improved the efficiency of our year-end reporting process. Standardised tax packs which can link directly with our accounting system has improved the integrity and granularity of data available to us. The system is very simple and easy to use which is important when dealing different tax jurisdictions. Using the Tax Reporting cube has allowed us to truly standardise our processes and enabled us to quickly and easily produce the relevant tax disclosures." – A FTSE 100 client

What’s next?

If you would like to know more about the Tax Reporting Cube, or would like to arrange a demonstration of the tool at your offices, please get in touch with one of our team.