Tax Provision (ASC 740)
Short answer
VPTax prepares the income tax provision (ASC 740) for your financial statements — including deferred tax assets, valuation allowances, and disclosures — and works directly with your auditors to answer their provision questions before they slow down your close.
If your company is audited — or is about to be, for the first time ahead of a financing round — the income tax provision is usually the line item that causes the most back-and-forth with auditors. VPTax prepares the provision and stays in the conversation with your audit team until it’s resolved, instead of handing you a number and disappearing.
What’s included
Your Tax Director calculates current and deferred tax expense, evaluates whether a valuation allowance is needed against deferred tax assets, and drafts the disclosures that go into your financial statements. Because the same team also handles your income tax compliance, the numbers in your provision and your return stay consistent — no reconciling two different advisors’ work.
Why this matters for growing companies
Many high-growth companies build their first real income tax provision under pressure, right before an audit deadline. Having a Tax Director who already knows your entity structure, NOLs, and multi-state footprint means the provision gets built on a foundation that’s already accurate, not recreated from scratch every audit cycle.
Ideal for
- Companies preparing audited financial statements for investors or lenders
- Startups approaching their first financial statement audit
- Finance teams without in-house income tax accounting expertise