Newest version delivers comprehensive solution to predict and analyze the financial impact of state net operating losses
Bloomberg BNA’s software products division announced the latest release of BNA State Tax Analyzer, featuring NOL Manager, an innovative new way to predict the impact state net operating losses (NOLs) will have on cash, the effective tax rate (ETR), and corporate earnings per share.
While the federal code allows 20 years of NOL carryforwards and two years of NOL carrybacks, states vary greatly on their own NOL rules. Corporations often have to navigate filing multiple entities in multiple states, forcing them to deal with hundreds or even thousands of returns in a single year. Each filing requires its own NOL supporting schedule that could span upwards of 10 to 20 years.
“Historically, companies with operating losses on their balance sheets have had to spend countless hours managing spreadsheets with thousands of complex formulas to track, compute, and forecast state NOLs,” said Ken Crutchfield, Vice President of Bloomberg BNA’s software products. “This can cause a myriad of issues – from manual data entry to spreadsheet calculation errors, to lost cash tax opportunities, or inadequate Sarbanes-Oxley controls. The latest version of BNA State Tax Analyzer enables companies to stay current on the vastly different state NOL rules and, most importantly, removes the uncertainty and risk of manually managing operating losses and predicting cash impacts.”
The NOL Manager feature automatically computes the generation, utilization, carrybacks, and carryforwards of state net operating losses across multiple years and multiple scenarios. NOL Manager helps users save time, increase accuracy, and reduce risk by enabling them to:
- Manage the burn-down of NOL assets and impacts to cash tax
- Compute and document valuation allowances to withstand internal and external scrutiny
- Show impacts of IRS and state tax audits on NOLs
- Estimate taxes for financial statements and quarterly estimates
- Calculate and track NOLs from the year 1998 forward for pre- and post-apportionment states
- Forecast taxes including built-in future enacted tax law
By reducing risk and simplifying complex multistate, multiyear, and multi-entity NOL calculations, NOL Manager supports corporations in tax planning, accelerates tax audit closure, reduces risks associated with spreadsheet use, and helps optimize cash tax.
Recently named one of Accounting Today’s Top New Products for 2016, BNA State Tax Analyzer was designed to address the state income tax modeling and analysis needs of the Global 2000. The new NOL Manager feature delivers on customer demands for an easier way to manage complex state net operating losses and is available now.
Bloomberg BNA offers expert software products for tax and accounting professionals. We are the solution for professional firms and corporations of every size, who depend upon Bloomberg BNA’s software products for the highest degree of tax, regulatory, and compliance expertise.
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