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  • 1. Automating Your Fixed Asset Lifecycle
  • 2. Objectives
    • Upon completion of this session, you will be able to:
      • Understand how you can integrate with a financial system (ERP/GL), calculate book and tax depreciation as well as reconcile from book to tax
      • Understand how you can automate the tracking of fixed and intangible assets, calculate appropriate depreciation, and remain in compliance for tax compliance and reporting purposes.
      • Understand how you can streamline your apportionment, federal and state E-file requirements, property tax declarations and international assets.
      • Understand how you can integrate with Vertex- Income Tax.
      • Understand how this tool can facilitate your operational and tax planning and responding to enterprise-wide requests related to your asset data.
  • 3. Who is Red Moon Solutions?
    • Products/Services
      • Fixed Assets Manager™ (FAM)
        • Supported Andersen’s internal U.S. tax practice
        • SAP Business One Certified Solution Partner
      • Like-Kind Exchange Matching™ (LKEM)
      • WorldPro™ Expatriate Solutions
      • PowerOLAP ™ - Tax Department Business Intelligence Solutions
      • ARMS ™ - Actuarial Risk Management Solutions
      • Consulting Services
        • Implementation & Integration
    • Founded by Jim Shedivy
      • Andersen Partner in charge of Tax Technology Enterprises
    • Ex-Andersen employees with minimum experience of 6 years
  • 4. 65% of fixed asset data is incomplete, inaccurate or altogether missing, a potential disclosure risk for executives now responsible for certifying the accuracy of financial data as a result of Sarbanes-Oxley compliance. - Asset Management Resource (AMR)
  • 5. Financial System Integration
  • 6. Financial System Integration Challenges
    • Need for tax department to involve IT
    • Disconnect between Accounting & Tax departments
      • No knowledge of timing for additions, retirements, transfers
      • Asset data modifications
    • Financial system data is inaccurate or incomplete
    • Required manual manipulation of financial system data for tax purposes
    • Use of Financial system for both book and tax depreciation for fixed assets
  • 7. Pitfalls of Using Financial System for Tax Depreciation
    • Lack of controls and validation when tax data is entered
    • Tax law updates are not maintained by vendor
    • Costly to maintain for tax purposes
      • Tax law maintenance
      • Custom tax reports
      • Consultants
    • Inadequate reports and forms for tax compliance
    • Lack of vendor experience in tax technical issues, implementations and support for fixed assets
  • 8. Options for Integrating Financial System Data
    • Data export from Financial system on a monthly or quarterly basis  Import into Fixed Assets Manager
      • Additions
      • Retirements
      • Transfers
      • Asset Updates
    • Cons :
    • Requires initial IT assistance
    • Possible file manipulation for tax mapping
    • Not fully automated
    • Pros:
    • Data reviewed by tax prior to import into tax system
    • Ability to make adjustments to incorrect tax data/catch mistakes earlier
    • More cost effective
  • 9. Options for Integrating Financial System Data
    • Use of an intermediary data repository for all tax-related data coming out
      • Vertex Tax Data Repository (TDR)
      • Data Mart
    • Pros:
    • Easier access to all compliance data for reporting/planning
    • Real-time access to data
    • Cons :
    • Requires more ongoing IT assistance
    • Can be expensive – consulting fees
  • 10. Tax View – Tax Data Repository
  • 11. Options for Integrating Financial System Data
    • Complete automation of data moving from Financial System into Fixed Assets Manager
    • Pros:
    • Complete automation of data
    • Less error prone – tax validation enforced
    • Process improvement
    • Cons :
    • Requires consulting/vendor expertise
    • Long implementation time
    • Can be expensive
  • 12. Demonstration: SAP® Business One & Fixed Assets Manager
  • 13. Fixed & Intangible Asset Tracking
  • 14. Demonstration: Fixed & Intangible Asset Tracking
  • 15. Incorrect information and errors in fixed asset inventory data are a near universal problem – resulting in significant and unnecessary tax overpayments of 8% to 20% - Asset Management Resource (AMR)
  • 16. Streamlining Apportionment, Property Tax, and International Asset Tracking
  • 17. Sample Fixed Asset Workflow Book Type Setup Foreign (Great Plains) LS
  • 18. Future Fixed Asset Workflow Book Type Setup Workflow/Doc Mgmt FAM - Accounting & Tax Generate & Integrate
    • Quarterly Provision
    • Estimated Payments
    • Compliance
    • Reporting
    • Audit
    • Planning
    Provision Software Fed/State Income Tax Software Data Integration Detail, Summary & ALL Filings FAM™ Property Tax Declarations
  • 19. Fixed Asset Challenges
    • Location tracking both domestic (state & city) & foreign:
      • Custom views
      • Report grouping
      • Search capabilities
    State Apportionment
    • Location tracking both domestic (state & city) & foreign:
      • Custom views
      • Report grouping
    • Improve accuracy of disposition & transfer tracking
    Property Tax
    • Track data by foreign location
    • Units for depreciation tracking
    • Reporting in any currency
    • Add-on module for currency conversions
    • 40+ standard reports & fileable forms
    • Custom reports
    • Add-on module for analytics and planning
  • 20. Income Tax & E-File
  • 21. Fixed Asset E-file Requirements
  • 22. Lifecycle Automation
  • 23. Tax Ecosystem: Driving Information Requests Tax Department Auditors Accounting: FASB Regulation: SEC Tax: IRS & States Internal Customers: CFO/CEO
  • 24. What are tax departments saying? “ We can’t get the information we need from our tax systems.” “ I spend too much time trying to manipulate data in Excel because standard reports don’t meet my needs.” “ It takes forever for IT to respond to our requests.” “ It takes too long to provide required information.” “ We do not have enough time to focus on tax planning and managing tax risk.”
  • 25. Multi-dimensionality actual/ forecast location period asset class entity entity asset class location entity asset class
  • 26. How will OLAP improve fixed asset reporting?
    • “ On-the fly” flexible analysis of real-time data
    • Unlimited number of reports – “slicing & dicing”
    • Replace many static spreadsheets with one multi-dimensional cube for slicing
    • Reduce time spent manually manipulating and massaging data in Excel
    • Free up resources for planning & strategic decision-making
    • Information is a company’s greatest asset
    90% analysis; 10% crunch
  • 27. How do you & your company benefit?
    • Enterprise solution
      • Robust & scalable
    • Cost effective
      • Fast ROI – measured in days & weeks
      • Low total cost of ownership (TCO)
      • 5-user license fees at $10,000 or less
      • Implementation time as short as a few weeks
    • Leverages investment in Excel knowledge
      • Security-enabled
      • Reduces sheer number of spreadsheets maintained through data sharing
  • 28. Contact Information
    • Thank you for joining us today.
    • www.redmoonsolutions.com