Is your financial data informational or transformational?

Putting technology to work

Analysing and classifying financial data to determine its tax or accounting treatment can be a challenging and time-consuming process, often taking weeks of manual effort and with no guarantee of consistent results.

This traditional approach is unsustainable given the increasing volume of data to be analysed combined with cost pressures within finance and tax functions, accelerating reporting and compliance timetables, and the digital demands of tax administrations.

 

EY Automated Ledger Review Tool (EY ALERT)

EY ALERT uses machine learning, a branch of artificial intelligence, to transform the classification of transaction-level data for a variety of tax and reporting purposes.

EY ALERT can reduce that manual effort from weeks to minutes, freeing up scarce resource, and improving consistency and confidence in the results.

Not only does our advanced machine learning tool allow you to automate the analysis and categorisation of large volumes of data quickly and accurately, it also retains learning and improves over time.

Some of the ways in which EY ALERT is helping businesses:

  • Determining the deductibility of expenditure for corporation tax purposes
  • Determining employment tax liabilities due under a PAYE Settlement Agreement and identifying items giving rise to a PAYE/Class 1 NIC obligation for processing through payroll
  • Determining recovery of VAT

Taking laborious manual data processing work away from skilled finance and tax professionals allows them to focus on asking better questions based on the insights that automated analysis delivers – and add real value to your business.

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EY - Analyse

How can EY ALERT help you?

Increasing data quality for tax

Many clients tell us that their data quality isn’t good enough to use technology or automate processes. The EY ALERT data quality score will show you the impact and ROI from remediation projects that you undertake working with Finance and IT.

Delivering accuracy at speed

  • Enables real time review which can improve effective tax rate management before year-end
  • Supports faster decision-making based on the most up-to-date data

Reducing risk through consistency

  • Enables a clear and repeatable process and audit trail that minimises the risk of human error
  • Eliminates routine processing and cleaning of data to allow tax professionals to focus on areas of judgement

Improving cost efficiency and increasing value

  • Allows group tax and finance to focus on partnering with the business to deliver greater value
  • Enables review of prudent positions on non-deductible expenses

What does this mean for you?

A focus on strategy, growth and development allows you to:

  • Drive integration of information across the business
  • Align your expertise to identify areas of risk and opportunity
  • Develop talent in the finance function
  • Build a strategic tax function
  • Develop skillsets more relevant to the changing tax environment

Tax authorities require more data electronically than ever before. EY ALERT helps you to analyse every transaction and support an audit-ready approach to Tax.

EY - classify

Case studies

Corporation tax compliance

Client's issue: A multinational, retail client initiated an enterprise level transformation programme designed to fully exploit the opportunities presented by digital technologies. They challenged us to apply this to the tax function.

Solution: In common with many organisations, we identified that substantial tax professional time was being spent on non-technical, manual data analysis for compliance purposes. We put our technology to work, developing an intelligent, machine-learning tool to eliminate these non-technical, compliance tasks.

“Time spent on data analysis and classification prevents tax professionals from partnering with the business and adding real value. EY ALERT removes this barrier, freeing up substantial tax professional time and allowing organisations to make clearer choices on the use of tax resources.”
Amy Underwood - Global Compliance & Reporting, Partner


Employment tax compliance

Client's issue: A UK headquartered FTSE 100 client was seeking to enhance their compliance outcomes whilst reducing time spent meeting employment tax requirements. They challenged us to demonstrate how we would differentially add value to their business by transforming the repetitive labour intensive steps of compliance analysis.

Solution: We worked closely with the client to provide a comprehensive solution, making use of both robotics and our artificial intelligence tool EY ALERT to introduce consistency and rigour to each employment tax decision, enabling us to radically reduce time spent on basic compliance. Our solution enabled our client to not only improve the efficiency of their internal processes, but also responded to the increasing digitisation of major tax authorities who are using technology to audit in real time.

"In house employment tax functions have faced dual pressures of increasingly complex employment tax requirements and more transparent reporting. This has resulted in increasing costs and penalties. EY ALERT presents employment tax functions with a unique opportunity to reduce time spent on compliance substantially, whilst enhancing governance through increasing consistency in decision making and providing a clear, concise audit trail."
Gemma Stack - Employment Tax, Director

Insights

EY -

As originally seen in AI for Business, published by Raconteur Media on 23 May 2018 in The Times and The Sunday Times.

Meet the team


Charles Brayne

EY - Charles Brayne

Chief Tax Innovation Officer
Tax Technology & Transformation

Simon Cowan

EY - Simon Cowan

Tax Technology & Transformation
 

Dr Harvey Lewis

EY - Dr Harvey Lewis

Chief Data Scientist
 

Amy Underwood

EY - Amy Underwood

Global Compliance & Reporting

Chris Lewis

EY - Chris Lewis

Indirect Tax

Gemma Stack

EY - Gemma Stack

Employment Tax