Toyota Financial Services Overhauls Tax Processes Using Corptax

Challenge

Toyota Financial Services grappled with significantly different provision processes for quarterly and year-end reporting; an excessive number of Excel® files with intricate manual calculations for both the provision and state/federal returns; and data challenges for reporting state apportionment. Changes meant updating many files—draining time and creating unnecessary risk. Further, uncertainty around proposed Tax Cuts and Jobs Act (TCJA) changes made planning difficult.

The team also:

  • Managed and maintained 33+ non-standardized Excel files, many quite fragile
  • Rolled forward irrelevant data contained in Excel files
  • Lost time to manual updates and processes, including:
    • Determining apportionment drivers
    • Searching for audit support when state apportionment files did not tie to return amounts
    • Fixing overrides on state returns that inadvertently impacted other state returns

Solution

Toyota completed a major process overhaul using CSC Corptax® Provision and CSC Corptax® Office. Now, the team:

  • Automates book-to-tax adjustment workbooks for quarterly/year-end provisions and compliance
  • Automates reconciliations for adjustments
  • Gains direct access to state provision calculations
  • Eliminates manual entry for state adjustments
  • Summarizes taxable income, state adjustments, and state apportionment including industry-specific basis adjustments
  • Refreshes data connections within Excel files to see changes to the specified accounts and impacts to returns
  • Uses case scenarios to prepare for retroactive and prospective TCJA final guidance

Results

Using targeted provision and compliance automation, Toyota Financial Services:

  • Saves 40% of time spent on tax preparation; redeploys it to high-value analysis
  • Increases efficiency with a uniform process for quarterly and year-end provision
  • Uses standardized provision and compliance workbooks
  • Reduces risk associated with manual entries and calculations
  • Works proactively in the face of pending legislation
  • Provides management with confidence—Corptax and supporting files agree!

Learn More from Corptax

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