Tax provision support, prepared from your close
Before the provision can start, someone exports trial balances by entity, maps accounts to book-to-tax adjustments, and rebuilds the same schedules as last quarter. From your close, the Accounting Agent can pull P&L and balance sheet data and prepare the supporting schedules your tax team or advisor uses for current and deferred tax calculations.
What the Accounting Agent prepares
- Pre-tax book income by entity, pulled from the closed trial balance
- Account balances mapped to the permanent and temporary differences your team defines
- A roll-forward of the book balances behind each temporary difference, ready for the tax basis your team provides
- Supporting schedules organized for your tax team or advisor to calculate current and deferred tax
- A working paper with each figure traced to the trial balance
How it works
- Pull the data. The Accounting Agent pulls P&L and balance sheet data by entity from your ERP once the period's numbers are in.
- Prepare the work in your logic and format. It applies your mappings and schedule layout and builds the working paper in Excel, with each figure traced to source.
- Review and approve. Your tax team or advisor reviews the schedules and signs off in the task, then uses them to calculate the provision.
What stays in your control
- Mappings, rates, and tax judgments set by your team or advisor
- Reviewer sign-off recorded on the task with name and date
- Source data and formulas open to your auditors
Standard note
ASC 740 (IAS 12 under IFRS) governs how income taxes are recognized and measured, including current and deferred tax.
FAQ
What is tax provision support?
It is preparing the data and schedules behind a company's income tax expense for the period, both current and deferred. Ledge prepares that support, and the calculation and tax judgments stay with your team and advisors.
Does Ledge determine our tax positions?
No. Ledge organizes the data with the mappings your team provides. Positions, elections, and uncertain tax judgments stay with your tax team or advisor.
Which data does the Accounting Agent use?
It uses the closed P&L and balance sheet by entity from your ERP, plus any other connected source your team adds to the working paper.
