Deferred TaxesDuring my twelve years of working as an
auditor, I have often been coming across the calculation of deferred
tax. The key problem is the multitude of differences between the balance
sheet and the corporation tax approach. It is easy to get lost when
identifying and calculating temporary differences or timing differences
on the basis of which it is calculated.
Incorrectly calculated
amounts of deferred tax asset or deferred tax liabilities, distort the
financial result. Often we find it difficult whether a difference is
temporary or not. This is intensified with the risk of simple mistakes
like an incorrect sign.
When in doubt, the time spent for a tax
accountant deferred income tax calculation may be difficult and time
consuming without support of external consultants. Consultants do not
always devote as much time as required and we do not have the habit
since most often we calculate it only once a year.
We have
developed 24iValue for people who do not calculate deferred taxes
every day. The deferred tax sub module is an intuitive deferred tax
calculator. We have seen to it that not only standard temporary
differences are incorporated, but also those that are encountered less
frequently.
24iValue performs the entire deferred tax
calculations process in generating deferred tax assets and deferred tax
liabilities. With the process, we understand what kind of timing or
temporary differences are to be looked for and how they should be
identified. It helps us verify the logic and completeness of the input
temporary differences. Only the information available in the books of
account is required. The entire process is intuitive and does not
require any additional training.
The automatic calculation
process and lower risk of error ensured by 24iValue may save an
entire working day at a time. Additionally, the corporation tax and
deferred income tax module and other modules are available on request so
we have access to our consultant 24 hours a day, including printout of
the result and recommendations.
Corporation taxesI am an auditor and a business owner. In addition, as I keep my
accounting books myself, I am familiar with the practical problems
related to corporation tax calculation and payment of the right amount
of tax liability or total tax company has to pay for a given period. There are many differences between the balance sheet
and the tax approach, which makes the risk of making errors high. That
is why I think income tax is a very complex accounting area.
That is additionally troublesome with the frequency of making the
calculation - even every month, while there are other accounting duties,
aren't there? The problems of calculating taxable profit and the
required precision impact the time required for the task; however, even
then we are not sure that our corporate tax calculation is correct.
The fear if we have managed to calculate our corporation tax correctly
keeps us awake at night. At the end of day? who is responsible for
errors? To mitigate the risk, we have to hire external consultants,
which is costly.
24iValue UK tax calculator has been designed primarily for those of
us whose income tax calculation is not verified by anybody else and who
are interested in mitigating the risk. Advanced knowledge is not
required. Tips and questions that are displayed during the calculation
of corporation tax with 24iValue lead users through the process with
ease.
With 24iValue, you can verify on your own and independently what you
have prepared. You will reduce the risk errors that can recur when we
check calculation of corporation tax in a traditional way. As a matter
of fact, we need no more information than we have in our books.
With 24iValue, you can save an entire day's work in a moment. That is
a lot of time. The availability of the service 24 hours a day provides
support around the clock and throughout the full year. When we have
verified the corporation tax and printed the result and conclusion on
its correctness from the 24iValue tax calculator, we can explicitly
prove the due diligence exercised in income tax calculation.
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