Provisioning for income tax can be a complex process for large multi-national organizations to mid-sized companies with a consistent growth mode. The tax provisioning process involves determining the current tax amounts as well as calculating the deferred roll-forward amount. This process becomes even more complex when organizations have to account for Federal, Regional and International taxing authorities with varying tax rates. Oracle Tax Reporting Cloud Service can eliminate the burden of the tax reporting and provisioning process.

Oracle Tax Reporting Cloud Service allows for full automation of the Tax Provisioning process by automating the process end to end, eliminating the need for complex Excel Spreads, various Third Party software, and complex reconciliations to determine the current and deferred amounts to include in the provision.

Oracle Tax Reporting Cloud Service provides systemic and automated tools directly out of the box, which enable:

• Tax Automation – Extract detailed tax information from source systems such as Oracle Cloud Financials Ledgers or Financial Close and Consolidation systems.
• Tax Data Collection – Collect tax data from regional controllers across the globe using an automated secure workflow, built to adhere to SOX compliance standards and established internal controls
• Tax Provisioning Calculation – Calculate tax provision from the entity level (legal entity) to the consolidated tax disclosure level. All pre-configured calculations are in compliance with US GAAP and IFRS guidelines
• Direct Integration with
  • Third-Party Tax Compliance software
  • EPM Cloud Products, Oracle Cloud Financials, Oracle Financial Close and Consolidation and other source systems
• Journal Entry Adjustments – TRCS allows organizations to post Journal tax adjustments at any entity-level within the company
• Country by Country Templates – Allow companies to seamlessly populate data from Financial Close and Consolidation, Oracle Financial Ledgers and third-party ledgers
• Dashboards and Tax Scheduling – TRCS allows for dashboards and tax scheduling that reflect Tax Key Performance Indicators (KPIs) and process schedules that allow for an integrated process that would normally take days or even weeks using Excel spreadsheets.
• Application Integration – TRCS integrates directly with Financial Close and Consolidation, Oracle Cloud Financials, Microsoft Office, Third Party Tax applications, Financial Data Warehouses.

In large corporations today, the financial close process is time-consuming and has multiple process bottlenecks that are disconnected. Most large organizations have disparate transaction systems and databases that suffer from data integrity, data governance and a lack of integration which makes the financial close process an exercise in reconciliation and data validation with less focus on business analysis and adding business value.

Controlled financial close processes are fire drill driven and not process or task-driven. Because of the involvement of multiple systems, several finance teams across the global and many lines of business along with subsidiary companies and recent acquisitions it can be impossible to track dependencies and manage the close process effectively. Two of the more time consuming financial close processes are validating general ledger and sub-accounts through spreadsheet driven complex reconciliations and managing the entire close across a global organization.

The future for The Office of Finance is through Optimized Finance Automation. Oracle EPM Cloud offers the first step in this direction through a suite of integrated products that seamlessly manage the close process. Oracle Account Reconciliation Cloud Service (ARCS) and Oracle Financial Close Manager (FCM) allow finance organizations to handle the bulk of the heavy lifting through account reconciliation automation, matching of like-kind transactions and synchronized task-driven process.

Oracle ARCS provides data automation and data load from general ledger and sub-ledger systems along with a set of configurable and intelligent rules to recognize and identify patterns in the reconciliation process. Account Reconciliation Cloud performs automatic matching of GL and sub-ledger amounts that allow the finance office to focus on exception research and account analysis and not sorting through massive amounts of data in numerous subsystems throughout the enterprise. Oracle ARCS can reduce the time of reconciliation preparation and difference resolution by days or even weeks when it comes to large organizations.

With Oracle Financial Close (FCM) the financial organization can automatically track the status of task completion across multiple systems as well as kick-off processes as soon as dependent tasks are completed. This creates a controlled close process that gives accountability to each member of the financial close team. FCM automatically updates the close calendar so that management and finance teams can stay apprised of where they are in the close process.

Optimized Finance Automation is the future of finance and through continued technological advances and organizational and process transformation, the Office of Finance can become a true partner in business growth and value as companies move into the next millennium of progress.