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How Tax Helps the Whole Organization Manage Entities

Understand tax impact as entities change – share one version of truth with Legal and Finance

Today, tax departments must satisfy reporting across multiple taxing jurisdictions and meet expectations of transparency on a global scale. New tax laws, political and economic influences at home and abroad, and changing tax implications impact taxable income like never before.

This requires Tax to embrace new skills, technologies, and operating models to better manage their legal entities, entity structures, and obligations in ways that benefit the entire organization.

A well-designed entity management system eliminates time spent consolidating entity data across multiple systems—as well as associated risk. It furnishes a centralized repository for legal entity data and a single source of truth to provide accurate information across the company. Tax, Finance, and Legal can proactively manage their legal entity requirements, understand the organizational structure, and collaborate on strategies to favorably impact taxable income.

Easily collect, store, sort, analyze, and report on entity data

By streamlining entity management, Tax has the opportunity to reduce overall costs and improve transaction readiness. An automated entity management solution also provides a controlled environment from which to share entity data with company stakeholders.

  • Track and reconcile entity data quickly across disparate systems to create an accurate org chart
  • Understand where entities are registered to ensure they meet taxing obligations
  • Automate entity groupings for consolidated and unitary returns based on ownership and filing obligations
  • Build comparative reporting based on entity status (Corporation, LLC, S-Corp) to understand ramifications

Further, technology allows in-house resources to refine the entity process and focus on strategic business matters such as recouping costs and identifying credits and tax liabilities.

CSC Corptax® provides an entity-driven solution offering the flexibility to apply rules and assumptions from the source of your data. It empowers you to centralize governance, ownership, tax, and compliance data for all entities in one system.

Entity management benefits both the business and shareholders

By sharing up-to-date entity data, company stakeholders can explore all points of view, making it easier to prioritize common goals and deliver optimal results for the company and shareholders alike.

  • Gain valuable insights throughout the tax lifecycle by improving control and visibility of entities
  • Simplify legal entity structure to improve readiness for transactions and M&A activities
  • Strategically manage critical org chart information in one database

Agile problem-solving technology gives tax teams an effective handle on the legal entity structure and provides building blocks for effective tax modeling and planning.

By maintaining current organizational charts at the touch of a button, tax teams see a full picture of the entity structure. Understanding taxing implications and obligations of all entities becomes an output instead of a task to be repeated over and over again by Tax and other departments.

Drive consistency and operational efficiency

As global authorities get tougher on tax, entity data is essential to managing the company’s tax work and position to keep pace with evolving regulations. Common storage, secure file-sharing, and self-service are key to operational efficiency.

By automating entity management, all entities, including dormant entities, are captured and accounted for. Understanding lines of business by taxing jurisdiction ensures tax teams build strategies to save cost and reduce risk. And up-to-date ownership, equity, and attribute data ensure a well-organized entity structure, which is the basis for everything!

Interested in learning more about streamlining entity management?  Watch a webinar or explore real-world case studies:

“By storing entities in Corptax, we saved ~80 hours annually on entity tracking, and now that data is easily accessible.” —Heidi Schaefer, Manager - International Tax, nVent

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About Kathleen Harrott

Kathleen Harrott has been with CSC Corptax® for more than a decade. Prior to Corptax, she spent more than 20 years in tax accounting and tax technology roles. As a Corptax Account Manager, Kathleen is the main point of contact for her clients, serving as an expert resource for information about new and existing Corptax products and services. She strives to develop long-term relationships with her clients and enjoys helping them stay current with the latest in tax automation.