defining analytics -...

DEFINING ANALYTICS

Confidential. Not for further distribution. 2

DEFINING ANALYTICS

• Seeing the story the data is telling

• Synthesis of data into insights

Recommendation

Insight

Data

What is an Analytic?

Deferred Tax Rollforward

Peer Benchmarking

Plan-to-Actual

Year-over-year

Comparisons

Footnote

ETR

1120

Multi-year trending


BENEFITS OF ANALYTICS

• “SALY” – Same As Last year

• Analytics help • Determine the material values are correct

• Manage the audit exposure

• Software Analytics should help • Find differences and key values in the data

• Explain the differences or trends

• Spend more time reviewing more parts of your obligations

All Contents Proprietary + Confidential. Copyright 2016 Corptax, Inc.

Analytics


Reporting & “Analytics” – Define Requirements

Define Requirements

• Standard (pre-defined) vs. Ad Hoc

• Report – data presented to provide information at a point in time

• Metric – measurement to track and assess status or for comparison

• KPIs – data presented to assess progress against or relationship to defined goals

• Analytics – data presented for comparison purposes, etc.

• Examples:

• Projections

• Diagnostic

• Reconciliations

• Variance analysis

• Ratio analysis

• Exceptions

• Sensitivity analysis

Data Analysis

• Define Your “Data Set(s)” – what data is needed?

• Sources of data

• Consider the context and temporal aspects of the data

• Consider how you want to manage changes to the data, e.g., scenarios

• Copy of the data

• Layer on changes to the data

• Level of data (granularity) needs to match reporting requirements

• Data accessibility

• Availability of “clean data”

• Ability to manipulate data

Tool Selection

• Identify what tools are available

• Assess feature set based on requirements and data analysis

• Ease of use

• Familiarity with existing products

• Print, save and export

• Dashboards

• Interactive charting

• Web based / publishing capability

• Self-service

• Standard out-of-the-box

• Ability to create your own reports

• Integrate data from multiple sources -> Tax Data Mashup

• Data Visualization – the eye candy

• Dynamic end user controls


Reporting & “Analytics” Takeaways

• Establish common terminology and definitions – meaning is more important than nomenclature

• Invest the time to clearly define your objectives and requirements

© 2015 Vertex Inc. All Rights Reserved.

Vertex Approach to Reporting

Market Defines

Vendor Defines

Client Defines

Form/Tax Return

Our “Way”

Your “Way”


What is Vertex Enterprise?

11

Enterprise data sources at various levels of detail

Unified, validated, tax-enriched data

Tax lifecycle management

Tax performance benefits

and features

Proprietary & Strictly Confidential

© 2016 Longview Solutions. All rights reserved.

12

Your starting point for tax.


2016 TEI Mid-Year Conference

Technology Roundtable

March 15, 2016



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Question 2



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Audit Ready Reporting

Key Challenge: Each auditor requests different things o Work closely with Audit partner

o Discuss specific needs and ensure focus is on content review vs. tool/model validation (legacy Excel

approach)

o Determine level of information access you wish to provide

Specifically designed reports / features Reports tightly connect Book and Tax accounting

Reports distinguish Manual entries from Automated outputs

Reports reconcile automation back to Book accounts

Reports can be exported to Excel (Audit preferred file type)



15


Audit Ready Reporting

Account Reconciliation

Expected Journal Entry

Automation vs. Manual Entry

Supportive Explanations

Excel

Publishing



16


Footnote Support

System collects all necessary details o Data collected at lowest level and consolidated

o Sub-totals and groupings organize information into key disclosure categories; (permanents / discretes

/ deferreds)

o Eliminations, Group / Topside Adjustments and DT Netting layered in

Reports designed from footnote backwards o Tax Rate Reconciliation

o Deferred Roll-forward and Classification

o Tax Account Continuity

o Equity / OCI

Sensitivity for each customers’ needs Excel used for presentation / format (dynamically updated through Add-In for Office)



17


Footnote Support

Consolidating Entries Dynamic Excel Connection

Customer

Specific

Presentation

Key Subtotals



18


Question 3



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Flux Reporting

Historical comparatives o Fairly easy once data has been structured within database

o Typical scope of Executive requests and foundation for trend analysis

“Floating” Time Segments o Pre-define desired comparisons (YoY, QoQ, Same Period Last Year, etc.)

o Reports dynamically update as active period is changed (roll-over)

Year-to-Date vs. Period-to-Date o Relatively easy for Current Year information

o Balance Sheet (Ending Deferred / Continuity) sometimes challenging

Actual vs. Budget vs. Forecast o Frequently challenging due to preparation outside system

o Incorporate information into structured system or face Excel assembly



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Flux Reporting

Prior vs. Current Year

ETR Trend Analysis

Variance Visualization

Multi-Year Comparatives Actual vs. Plan


Vertex Enterprise

21

Features an open architecture that unifies:

• data • tax applications • analytics

from across the industry

ERP


Vertex Approach to Analysis

Simplicity

Flexibility

Adaptability

Report Library

Custom Reports

Custom Data



23


Contact

Brad Hearn

VP, Product Management – Tax

P: +1 (519) 513-0233

M: +1 (519) 404-4869

E: [email protected]

See our solutions at www.longview.com

http://www.longview.com/



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© 2016 Longview Solutions. All rights reserved. Longview, Longview Solutions, arcplan, arcplan Enterprise, arcplan Excel Analytics, arcplan Engage, arcplan Edge, arcplan

Mobile, arcplan Spotlight and their respective logos are trademarks or registered trademarks of Longview Solutions Canada ULC or one of its subsidiaries. All other company

names, products and services used herein are trademarks or registered trademarks of their respective owners.

The information published herein is subject to change without notice. This publication is for informational purposes only, without representation or warranty of any kind, and

arcplan shall not be liable for errors or omissions with respect to this publication.

www.longview.com.


Reporting and Analysis – Scenario Planning (Question #4)


Reporting and “Analytics” – Scenario Planning: Key Considerations

Define Requirements

• Standard (pre-defined) vs. Ad Hoc

• Report – data presented to provide information at a point in time

• Metric – measurement to track and assess status or for comparison

• KPIs – data presented to assess progress against or relationship to defined goals

• Analytics – data presented for comparison purposes, etc.

• Examples:

• Projections

• Diagnostic

• Reconciliations

• Variance analysis

• Ratio analysis

• Exceptions

• Sensitivity analysis

Data Analysis

• Define Your “Data Set(s)” – what data is needed?

• Sources of data

• Consider the context and temporal aspects of the data

• Consider how you want to manage changes to the data, e.g., scenarios

• Copy of the data

• Layer on changes to the data

• Level of data (granularity) needs to match reporting requirements

• Data accessibility

• Availability of “clean data”

• Ability to manipulate data

Tool Selection

• Identify what tools are available

• Assess feature set based on requirements and data analysis

• Ease of use

• Familiarity with existing products

• Print, save and export

• Dashboards

• Interactive charting

• Web based / publishing capability

• Self-service

• Standard out-of-the-box

• Ability to create your own reports

• Integrate data from multiple sources -> Tax Data Mashup

• Data Visualization – the eye candy

• Dynamic end user controls


Corptax Reporting and Analytics

Feature Description

Aggregation Select how you want to group the row detail on the report.

Change heading names Select the information you want to display in column headings.

Compare by period View data for multiple periods within a single report.

Copy columns Copy columns in the Settings window on any report.

Detail by account The parent account summarizes the balances of its children accounts.

Drillthrough Click a value to drillthrough to the source transaction detail.

Grand Total/Entity Total Select where you want Grand Total and Entity Total columns to display on any report.

Grouping Select how you want to group data on the Aggregation tab.

Hide columns Hide or show columns from the report.

Paging options Select how many entities per page you want to view on any report.

Rollups Select an entity rollup when configuring the report.

Snapshot Save a report as a snapshot to preserve values related to a specific time and context.

Zeros settings Select whether you want zeros or "n/a" to display where the value is 0.

Scaling Scale the values to show in thousands, millions, or billions.

Transpose data Transpose the headings and rows on any report.

In addition to standard reports, users can create their own reports in Corptax Web.


Corptax Web Reporting and Drillthrough


Tax Contingencies: Tabular Reconciliation of Uncertain Tax Positions


Tax Contingencies: Tax Position Summary by Classification


Provision: Income Tax Provision Summary


Provision: Current Provision Report


Corptax “Connected” Data C

lien

t Si

de

Co

ntr

ol

Solution Sophistication

Corptax Office

Corptax ODBC

Corptax Data Exchange Web Services API


Takeaways

• Establish your reporting and analytics requirements (Outputs)

• Analyze the data and context needed to support the requirements (Inputs and Sources)

• Select the application(s) and technology best suited to your requirements and data

– Avoid over complicating and overkill

– Don’t forget you have to feed the beast – sustainable solution with low maintenance

• Maximize usage of the functionality available in your software (e.g., Corptax)

• There will always be a need/desire for external data interfaces and “connected data” – design an

approach that provides flexibility aligned with your business requirements

PLANNING & FORECASTING


FORWARD LOOKING ANALYTICS

• Tax Planning is a puzzle • Assemble the necessary information:

• Prior period returns

• External data

• Planning scenarios

• Synthesize it to a recommendation


FORWARD LOOKING ANALYTICS

• The Tax Department has a seat at the table • Does your department have the tools and access to act

swiftly on the puzzles abroad?

• Challenge of estimating tax given limited information: • Analytics can help identify the drivers

• Help in construction of simple models, avoiding the need for

a full tax computation


BEPS Action Manager

Transactions

and

HR data

Country by

Country

Risk

Analytics

Entity

Charting

BEPS Action

Manager

Reporting &

Action 13

Management

BEPS

Research

Multiple data

Collection Options


TECHNOLOGY SOLUTION NEEDED

Nuts & Bolts Filing

Supporting Documents (Archival/Doc Retention)

Analytics &

Comparisons

• Analytics to understand risk areas & profile

• Need to run multiple complex scenarios

• Storage, retrieval and version control

• Ease of use

Data Consolidation &

Translation (FX)

• Ability to translate currencies

• Consolidation of complex systems including build

up to correct countries

• Need to integrate with data requests from field

• Ability to streamline report creation

• Ability to generate XML

• Provide audit trails and reconciliations

Efficient Transparent Repeatable

Allows for a process that is…