Tax Departments usually do not have the resources or the
necessary in-depth SAP expertise to review the Fixed Asset system
on an on-going basis.
The consequences can include incorrect depreciation terms (depreciation
methods, useful lives, depreciation dates), inaccurate
depreciation amounts, wrong asset classifications, etc. Fixing these errors proves a costly undertaking since the prior
fiscal year is already closed and/or assets may have already been
disposed of or transferred.
To address this problem we now offer a new service to our
clients:
Quarterly SAP Fixed Asset Tax Review Sessions
During these sessions, Michael Management Consultants
extract the prior quarter's Fixed Asset activity (including new
asset master records, acquisitions, disposals, transfers, etc.)
and perform thorough reviews of the data. We search for
inconsistencies and other potential problems so that these can be
addressed and fixed early & easily. We then provide a detailed
report to the tax department and work with the client's tax
partner on any required corrections.
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"Tax reconciliation &
recalculation projects made up a large part of our consulting
business this year! I knew that our clients needed a
better approach to managing their Fixed Assets.
Our new Tax Review service catches
potential errors early and avoids costly recalculation
projects - for just 2-3 days per quarter!"
Tom Michael
CEO/Pres. - MMC
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Together with our clients we develop a comprehensive review
list and focus on areas that have caused issues for the tax
department before. These areas could include items like:
-
check for back-dated transactions, asset master records and
catch-up depreciation
-
check new assets' depreciation terms for consistency with
class defaults
-
check for correct asset class assignments
-
check for proper treatment of intercompany transfers,
disposals, other adjustments
The cost for this service is minimal when compared to the
alternative of having to fix asset records & depreciation
amounts for prior, closed fiscal years. Depending on the scope and volume of our reviews, most
quarterly tax review sessions take only 2-3 days of consulting
time!
Interested? Contact
us to discuss this service with us!