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
Confidential. Not for further distribution. 4
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.
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
All Contents Proprietary + Confidential. Copyright 2016 Corptax, Inc.
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”
© 2015 Vertex Inc. All Rights Reserved.
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.
Your starting point for tax.
2016 TEI Mid-Year Conference
Technology Roundtable
March 15, 2016
Proprietary & Strictly Confidential
© 2016 Longview Solutions. All rights reserved.
13
Your starting point for tax.
Question 2
Proprietary & Strictly Confidential
© 2016 Longview Solutions. All rights reserved.
14
Your starting point for tax.
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)
Proprietary & Strictly Confidential
© 2016 Longview Solutions. All rights reserved.
15
Your starting point for tax.
Audit Ready Reporting
Account Reconciliation
Expected Journal Entry
Automation vs. Manual Entry
Supportive Explanations
Excel
Publishing
Proprietary & Strictly Confidential
© 2016 Longview Solutions. All rights reserved.
16
Your starting point for tax.
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)
Proprietary & Strictly Confidential
© 2016 Longview Solutions. All rights reserved.
17
Your starting point for tax.
Footnote Support
Consolidating Entries Dynamic Excel Connection
Customer
Specific
Presentation
Key Subtotals
Proprietary & Strictly Confidential
© 2016 Longview Solutions. All rights reserved.
18
Your starting point for tax.
Question 3
Proprietary & Strictly Confidential
© 2016 Longview Solutions. All rights reserved.
19
Your starting point for tax.
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
Proprietary & Strictly Confidential
© 2016 Longview Solutions. All rights reserved.
20
Your starting point for tax.
Flux Reporting
Prior vs. Current Year
ETR Trend Analysis
Variance Visualization
Multi-Year Comparatives Actual vs. Plan
© 2015 Vertex Inc. All Rights Reserved.
Vertex Enterprise
21
Features an open architecture that unifies:
• data • tax applications • analytics
from across the industry
ERP
© 2015 Vertex Inc. All Rights Reserved.
Vertex Approach to Analysis
Simplicity
Flexibility
Adaptability
Report Library
Custom Reports
Custom Data
Proprietary & Strictly Confidential
© 2016 Longview Solutions. All rights reserved.
23
Your starting point for tax.
Contact
Brad Hearn
VP, Product Management – Tax
P: +1 (519) 513-0233
M: +1 (519) 404-4869
See our solutions at www.longview.com
Proprietary & Strictly Confidential
© 2016 Longview Solutions. All rights reserved.
24
Your starting point for tax.
© 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.
All Contents Proprietary + Confidential. Copyright 2016 Corptax, Inc.
Reporting and Analysis – Scenario Planning (Question #4)
All Contents Proprietary + Confidential. Copyright 2016 Corptax, Inc.
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
All Contents Proprietary + Confidential. Copyright 2016 Corptax, Inc.
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.
All Contents Proprietary + Confidential. Copyright 2016 Corptax, Inc.
Corptax Web Reporting and Drillthrough
All Contents Proprietary + Confidential. Copyright 2016 Corptax, Inc.
Tax Contingencies: Tabular Reconciliation of Uncertain Tax Positions
All Contents Proprietary + Confidential. Copyright 2016 Corptax, Inc.
Tax Contingencies: Tax Position Summary by Classification
All Contents Proprietary + Confidential. Copyright 2016 Corptax, Inc.
Provision: Income Tax Provision Summary
All Contents Proprietary + Confidential. Copyright 2016 Corptax, Inc.
Provision: Current Provision Report
All Contents Proprietary + Confidential. Copyright 2016 Corptax, Inc.
Corptax “Connected” Data C
lien
t Si
de
Co
ntr
ol
Solution Sophistication
Corptax Office
Corptax ODBC
Corptax Data Exchange Web Services API
All Contents Proprietary + Confidential. Copyright 2016 Corptax, Inc.
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
Confidential. Not for further distribution. 36
FORWARD LOOKING ANALYTICS
• Tax Planning is a puzzle • Assemble the necessary information:
• Prior period returns
• External data
• Planning scenarios
• Synthesize it to a recommendation
Confidential. Not for further distribution. 38
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
Confidential. Not for further distribution. 40
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
Confidential. Not for further distribution. 41
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…