We differentiate ourselves from other third-party service providers. Our focus on tax compliance allows us to deliver exceptional white glove service in the following areas:
Specialized Knowledge
Our clients’ management teams, Boards of Directors, and external auditors must be confident in the ability of the company’s FASB ASC 740 service provider to consistently identify and address all issues in an efficient and timely manner. For this reason, we are committed to focusing our time, energy and resources on our core competency – income tax compliance services.
All of our internal product and personnel development efforts revolve around this single tax process. To reinforce our commitment to this specialty, we require a rigorous FASB ASC 740 training regimen for our staff including weekly office-wide current event discussions and analyses of complex compliance issues. We also bolster our commitment by subscribing to the best software resources available, maintaining a tax library commensurate with those used by large accounting firms, and sustaining relationships with Big Four accounting firms that generally have the pulse on new developments.
Unlike other local and regional firms who attempt to provide a “full-service” experience similar to large worldwide firms, we recognize that in general most companies are best served by leveraging the vast expertise of large firm specialists for most consulting services (i.e., Section 382 analyses, R&D credit studies, international structuring, state nexus studies, etc.). While we are capable of performing certain of these services, we prefer to focus our efforts on our core competencies. Accordingly, we tend to identify key issues and coordinate with large firm specialists or the company’s auditors to ensure their conclusions are incorporated during the preparation of tax provisions and returns.
Process Management
Because of our focus on FASB ASC 740, we have invested significant resources in developing a proprietary standardized core provision model based on input received from a variety of clients and external auditors. The emphasis of this model is ease of review through the use of an intuitive, linear data flow along with data checks and reconciliations throughout to help ensure accuracy of the analysis. While the model continues to evolve to meet new challenges and documentation requirements, the core model provides consistency for all Clifton Douglas tax provision clients.
Furthermore, since we specialize in compliance and standardize our core provision model, we have developed a core competency in the tax provision process that allows for timely preparation without sacrificing accuracy. Since we are not distracted by areas outside of our recognized core competency, we are able to focus our attention solely on meeting compliance deadlines while constantly improving the tax provision process.
Documentation
During preparation of the initial provision analysis by Clifton Douglas, each model is customized to meet each particular company’s specific needs. This process occurs prior to the end of the reporting period to avoid delays in the deliverable. In addition, we pride ourselves in the attention to detail both in the utility and overall aesthetics of each individual model. This is reflected, in part, by the generous use of workpaper references and notations used throughout to add clarity and support for the calculation. We believe this level of attention to the analysis helps minimize the cost and review time required by management and external auditors.
Communication
A key challenge facing tax professionals is to provide an accurate and detailed analysis under the tight timeframes required to allow for sufficient company and external auditor review. In order to achieve this, we meet with company management prior to the end of each reporting period and discuss key issues, establish a timetable, and identify potential “bottlenecks” in the preparation process (e.g., complex or nonrecurring transactions). These issues are then discussed with the company’s external auditors so that sufficient time is available to consider each issue and obtain specialist review, if necessary. In addition, timeliness is also achieved by “front-loading” the preparation process using projections and preliminary financial data.
Upon completion, we also generally meet with both management and external auditors to walk-through the provision model and draw attention to key issues and assumptions. We believe the time spent during this meeting drastically reduces both internal and external review time and related costs.
Risk Management
At the completion of each provision analysis, we provide our clients with a comprehensive provision package. This includes a complete set of working papers and supporting provision documentation, proposed journal entries and financial statement disclosures, and a detailed tax provision memorandum discussing key facts, assumptions, and rationale used in reaching the conclusions. This package is specifically designed to facilitate review by both company management and the external auditors by providing a robust audit trail. In addition, where the company is subject to the internal control requirements of Sarbanes-Oxley, working papers are also arranged in accordance with the tax controls to provide for clean management sign-off and auditor review. Electronic copies of the provision analysis and supporting workpapers are made available on our secure online CyberCabinet. The CyberCabinet provides our clients with a secure multi-year centralized data repository and a comprehensive audit trail for both auditors and internal control purposes.
