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Archive for Stephen Day

Whitepaper- Controlling the “Out-of-Control” Tax Provision Or How to Make Your Auditors Love You & Your Tax Provision!

The PCAOB is using the type of logic that made you feel clever in 4th grade when you finally grasped that a square is a rectangle but a rectangle is not necessarily a square.

The general premise of the PCAOB is this; Restatements will most likely arise when there are material weaknesses in the internal controls environment. But the existence of a material weakness won’t necessarily lead to a restatement.  In other words, you might still get things right in spite of poor internal controls.

If this logic holds true, there should be more general control issues (e.g., significant deficiencies) than material weaknesses and similarly more material weaknesses than financial restatements.  In 2015 this did not hold true. Here is a troubling pattern:

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3 “Must Haves” Of Tax Provision Software For Small & Medium Businesses

Stephen Day

Recently published surveys indicate that 50% to 70% of the tax departments in publicly traded companies exclusively use spreadsheets to manage ASC 740 processes. However, the percentage would be higher if the surveys focused strictly on small and medium businesses (SMB). These numbers have held steady the scrutiny of the last fifteen years relative to the tax areas of financial statement reporting and internal controls. The current provision offerings have not met the needs of SMB tax executives. If a technology solution wants to be an answer to the homegrown spreadsheets running the ASC 740 process, it must be accurate and comprehensive while being easy to use.

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If Unmeasured, Is It Really Success? An Introduction To Measuring Tax Function Value

An introduction to measuring tax function value

One of the challenging topics in tax management is how to measure the success of the function.  Some of the most seasoned tax leaders of the largest organizations will say the main measure of success is the “no surprises” rule; If corporate management is never surprised by a tax result, the tax department and its leaders are deemed successful.  Although the sentiment is understandable, this highly subjective notion is hardly something that can be Read more

Smooth (Tax) Operators Enable Alignment:

Stephen Day

An introduction to the tax operating model

A client called our team in to discuss their “tax transformation roadmap”.  These types of meetings are always challenging. After introductions, the project manager began to explain that their tax transformation would kick off with an MS SharePoint implementation and build from that piece of technology forward.  Although “beginning with the end in mind” is typically a good principle, tactical steps that place too much emphasis on a Read more

Creating Tomorrow’s Tax Value With Today’s Successes

An introduction to sustainable tax value

Shortly after I was appointed chief tax officer (CTO) of a public company, a local attorney sent me a small congratulatory gift.  It was book called 101 Corporate Tax Loopholes.  That did not sit very well with me.  While “loopholes” may be legally defensible, it just sounds bad.  So, in typical smart-alecky Read more

What They Didn’t Teach Us in Tax School: A Guide To Delivering Enterprise Value Through Intentional Tax Function Management

Introduction

 

It did not take long to realize that no one had trained me to be the leader of a tax function.

I attended one of the top accounting/tax schools.  I followed the prevailing advice to begin my career with a “Big 6” firm to gain “the best training” possible for CPAs.  Technically, I had a sound background and good mind to apply the knowledge.

The assignments in the “Big 6” firm were exciting.  The clients Read more

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