Streamline
Eliminate spreadsheets and disconnected point solutions. Automate and streamline tax provision data flows and reporting.
Improve
Report consolidated and statutory Effective Tax Rate (ETR), generate footnotes and management reporting.
Control
Align data and minimize reconciliation, automate reporting and export data to tax compliance systems. Leverage OneStream platform capabilities such as workflows, data auditability and confirmation rules. Tax can control its own data and process separate from Finance, and at the same time has access to finance data when required.
Satisfied Customers
Delivering 100% Customer Success
“The OneStream platform is now core to McCain Foods Limited – uniting consolidation, planning, tax and analysis teams. OneStream Services’ strong leadership and technical knowledge was instrumental in our successful implementation. Their ability to actively listen to our goals and objectives and interpret during the design phase allowed us to create a system not only to satisfy our immediate needs, but to address our future needs.”
Richard N. Burton
McCain Foods
Unified Data Collection
Automate and streamline tax data collection and validation and ensure consistency in tax calculations.
- Leverage the same trial balance load for tax provisioning as for financial reporting.
- Collect supplemental data through standardized data entry forms using a single point of entry.
- Apply standard repeatable tax provision calculations that can be extended to suit your company’s needs.
Data Alignment and Validation
Leverage a unified platform to minimize reconciliations. Automate reporting and export data to tax compliance systems.
- Configurable input forms for tax rates, payments, and refunds, tax attribute detail, return to provision, current provision, deferred tax roll-forward, and tax account reconciliation.
- Data exportable to tax compliance systems and importable from tax compliance to facilitate the return to provision true-up.
Reporting & Analytics:
Unify financial & operational insights to drive performance and deliver value. Deliver the right information, in the right format, at the right time.
- Configurable dashboard visualizations to provide deep analysis of ESG data and turn it into valuable information and insights.
- Ad Hoc Analysis via Excel & in-built Spreadsheet Component and pivot grids.
- Integration with MS Office products – produce & distribute ESG PowerPoint packs, Word Docs and pdfs with ease.
- Data Blending supports reporting on high volumes of non-financial data.
Tax Provision Solutions
Hub – Financial Close & Consolidation
Financial Data Quality Management
Financial Reporting & Analytics Software
Account Reconciliations Software
Tax Provision Resources
OneStream Tax Provision Implementation
Tax Automation and Innovation – Optimising OneStream for Pillar 2 and Tax
Selecting the Right Tax Provision Software
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FAQs About Tax Provision
A tax provision is the estimated amount a company sets aside to cover its income tax liability for a specific period. It ensures accurate financial reporting and compliance with tax regulations.
Quarterly tax provisions are estimates of a company’s income tax liability recorded every quarter to ensure accurate financial reporting and compliance.
If a company has a taxable income of $1,000,000 and a tax rate of 25%, the provisions tax would be $250,000, recorded as an expense on the income statement.
Provision for income tax helps businesses anticipate tax liabilities, maintain accurate financial statements, and avoid unexpected tax burdens or compliance issues.
Tax provision software automates the calculation, reporting, and management of a company’s tax liabilities. It ensures accuracy, compliance, and efficiency by streamlining tax estimates, adjustments, and regulatory reporting.
It typically includes steps for gathering financial data, calculating tax liabilities, reviewing adjustments, reconciling deferred taxes, and preparing necessary disclosures.
It involves assessing taxable income, applying the appropriate tax rates, accounting for deferred taxes, and making necessary adjustments for deductions and credits.
To calculate a tax provision, follow these steps:
- Determine taxable income: Start with your company's pre-tax income and adjust for non-deductible expenses, tax credits, and other items affecting taxable income.
- Apply the tax rate: Multiply the taxable income by the applicable corporate tax rate to estimate the tax liability.
- Account for deferred taxes: Adjust for any temporary differences between accounting income and taxable income (e.g., depreciation) that result in deferred tax assets or liabilities.
- Make necessary adjustments: Consider any credits, exemptions, or carryforwards that may reduce the final tax provision.
- Record the provision: The estimated tax liability becomes part of the company's financial statements as the tax provision, reflecting both current and deferred taxes.
