Success Story - Toyota Financial Services

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 law 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!