Navigating the crowded marketplace of ASC 740 tools can feel overwhelming. With so many options and so much at stake, how do you ensure you’re choosing the right provision provider for your firm or corporate tax department? In our recent webinar, tax leaders from both the software and public accounting sides shared their firsthand experiences and practical advice on making this critical decision.
Here’s a slimmer version of their conversation-designed to get you thinking about your own needs, challenges, and what to look for in a tax provision solution.
Why Rethink Your Provision Process Now?
Whether you’re in an accounting firm or a corporate tax department, the risks and inefficiencies of manual, Excel-based provision processes are universal. As Xander Jones, head of professional services at Exactera, put it, “There’s never a wrong time to assess your current situation and processes, but right after busy season is perfect. Everything is fresh…what worked, what didn’t, and where the pain points are.”
The first step is recognizing the need for change. That means taking a 360-degree look at your current process: talk to preparers, reviewers, audit teams, and even clients. Ask what’s working, what isn’t, and where technology could make a difference. Document your must-haves versus nice-to-haves, and be honest about the risks you’re willing to tolerate.
Excel: Friend or Foe?
Stephanie Dunn, Tax Director at KSM, shared how her firm standardized its provision process with a uniform Excel template. This was a big improvement—until it wasn’t. As KSM grew and took on more complex clients, the limitations of Excel became clear:
- Customizing for foreign operations and consolidations became time-consuming and risky.
- Version-control issues made it hard to track changes and maintain consistency.
- Last-minute updates and broken formulas created deadline chaos.
- Knowledge transfer was a challenge when team members left or changed roles.
- Scalability was limited—adding entities or jurisdictions was never as simple as it seemed.
Stephanie realized that even the best Excel template couldn’t provide the controls, automation, and audit-readiness needed for today’s tax environment. That’s when KSM began searching for a software solution that could scale with their business and withstand external scrutiny.
What Should You Look for in a Provision Software Solution?
The truth is that there’s no one-size-fits-all answer. The right solution depends on your firm’s unique needs, client base, and growth plans. However, here are some tips:
- Start with a detailed wish list: What are your must-haves? Where are your biggest pain points?
- Assess your risk appetite: How much manual intervention is acceptable? What controls do you need?
- Think about scalability: Will the solution grow with you as your client base or business complexity increases?
- Prioritize ease of use and knowledge transfer: Can new team members get up to speed quickly?
- Audit readiness: Does the software provide the documentation and controls needed for internal and external reviews?
- Support: We all love flashy dashboards and efficient functionality, but what we often forget to consider is much less sexy: support. Believe it or not, many taxpayers leave solutions due to a lack of customer service (or being overcharged for it). What kind of technical support is available for the solution you’re considering? How tech-savvy is your tax department? Anticipating the need for help—and how much is available to you—should factor into your buying decision.
- Don’t just take the vendor’s word for it: Test-drive the software, talk to references, and get feedback from everyone involved in the process.
Ready to Dive Deeper?
Choosing the right tax provision software is a strategic decision that can transform your business. If you want to hear this real-world story and gain knowledge that you can apply tomorrow, watch the full on-demand webinar.
Ready to take the next step? Download our Service Provider’s Guide to Buying Tax Provision Software for a step-by-step checklist, feature comparisons, and tips to make your selection process easier.
