With a change in external audit firms, this Technology Company needed help with income tax accounting. They had previously used a regional accounting firm to provide income tax accounting services but had switched from a Big 4 firm to the same regional accounting firm for their external audit needs. The regional accounting firm was no longer able to provide income tax accounting services due to the resulting conflict of interest. We were able to come in and provide the technical skills needed to quickly and accurately prepare the quarterly income tax accounting calculations and related tax disclosures.
With our variable workforce model, Jefferson Wells was able to identify the technical talent available, scope the engagement and quickly put together an estimated plan and budget. The initial information request list was provided to the client and the first quarter tax provision calculations were completed before the client’s initial deadline. The workpapers and calculations were clear and easy to follow, resulting in minimal questions from the external audit firm. A summary memo was provided to the client highlighting the important transactions that transpired each quarter, and the client was grateful for the explanation. With no tax staff in-house, the client had trouble understanding the provision calculations prepared by the previous provider. Additional projects arose as the year progressed and the Technology Company decided to sell one of their entities. Our staff was able to meet with the external audit firm and develop a work plan and timeline satisfactory to all parties involved.
Due to the quick turnaround of providing the client with the right resources at the right time, provided the external audit firm with accurate tax accounting calculations that required no audit adjustments, speeding up the time it took to close the books each quarter. This ultimately led to lower audit fees as fewer questions needed to be addressed and no late entries were necessary.