Until now, most corporate tax departments—hindered by resource constraints, lack of automation, and manually intensive processes—have been unable to address the complexities of state tax apportionment or alter its often-convoluted processes. In fact, a vast majority of state apportionment data handling, analysis, and reporting is conducted utilizing a multitude of spreadsheet-based models. Unfortunately, this manual approach, which provides limited (if any) security or controls, impedes the ability to track changes that occur during the compliance process, and leads to a host of inefficiencies and a high propensity for error.

Process Transformation Drives Controls, Certainty, and Visibility

Drawing on Liquid Engines’ extensive experience in delivering comprehensive data management solutions to corporate tax departments, AMS is designed to address these shortcomings by transforming manual apportionment collection, consolidation, and sourcing methods into an efficient, controlled process that offers high data integrity and a complete audit trail. Providing a single foundation for data consolidation, management, and reporting, AMS ensures that data is consistently handled, best practices are followed, positions and adjustments are tracked and documented, and information is easily shared across all tax functions. Given that apportionment is so fundamental to Tax—integral to compliance, audit, provision, and planning—process enhancements enabled by AMS result in greater efficiencies and visibility, and access to information for all of these tax functions.

AMS customers benefit from the following:
Certainty of data that translates into increased confidence, elimination of surprises, and reduced risk
Elimination of countless hours allocated to data gathering, reconciliation, error checking, and spreadsheet maintenance
Increased visibility and accountability with comprehensive audit trail and document tracking
Enhanced auditor confidence with controls to segregate duties and reports to provide granular by-entity, by-state effective rates for state provision
Streamlined access to detailed, up-to-date, and consistent apportionment for compliance, provision, audit, and planning processes

Next-Generation Technology Enables Controls, Tracking, and Standards

At the heart of the Apportionment Management Solution is an advanced technology foundation called AMx. Based on an open architecture that seamlessly integrates with other tax systems, AMx provides a robust platform to centralize the collection and sourcing of state apportionment data, management of tax rules and positions, and calculation of division and partnership rollups. Deployable over the web and offering an intuitive interface, AMx enables tax professionals from any functional area—and from any location—to access information exactly when they need it, and with the right level of detail.

The AMx technology foundation provides the following key automation capabilities:

Data Standardization
The centralized system is a single source of truth for by-entity, by-group, and by-jurisdiction apportionment information.
Web-based tax packages and robust data import facilities ensure apportionment details are collected and consolidated in a consistent manner, streamline access for tax package providers, and eliminate the need to manually consolidate and rekey data.

Process Controls/Best Practices
Embedded calculations and configurable tax rules minimize the need for offline spreadsheet models and ensure that apportionment analyses are conducted using a consistent methodology.
Multi-year tax rate tables provide the needed detail to supply by-entity, by-jurisdiction effective rates using current rules or future legislation for both separate and group filings.
Robust, roles-based security and controls allow for segregation of duties and limiting access to information.

Audit Trail
An automatic, comprehensive audit trail shows any change with the ability to recall data, reports, and calculations at any point in time, ensuring original “as-filed” data is always available, even after subsequent or amended returns are filed.
Document and comment tracking facilitates the review of sourcing methodologies and centralizes the supporting documentation for positions taken.

Team Access
With standardized data, best practices around controls and documentation, and centralized calculations and reporting, tax professionals on the compliance, audit, planning, and provision teams all benefit from immediate access to up-to-date, detailed apportionment data.

AMx facilitates process improvements, the implementation of security and controls, and the automatic tracking of a detailed audit trail. This next-generation technology lays the requisite foundation for meeting today’s ever-increasing demands for information, accuracy, and transparency.

Availability and Additional Information

The Liquid Engines Apportionment Management Solution is available immediately. For more information or to request a solution briefing, contact the company at 408.585.9000, email info@liquidengines.com, or visit www.liquidengines.com.

About Liquid Engines

Liquid Engines, founded in 2000, provides software and services that empower corporate tax professionals to develop and manage world-class tax organizations. Today Liquid Engines is a recognized leader and innovator in corporate tax technology. Our comprehensive tax management solutions enable tax teams to transform their operations by evolving from manually intensive methods to highly automated processes, from single users to collaborative problem solving, and from questionable quality to certainty in data. Global 1000 companies in retail, financial services, manufacturing, and other industries rely on Liquid Engines' solutions to help them achieve the following operational advancements:
Increased efficiencies that translate to more time spent on high-value activities
Enhanced confidence in decisions and reporting
Greater insight into potential risks and opportunities