Macy’s recent disclosure of an employee’s intentional misreporting of up to $154 million in expenses has sparked important conversations about internal controls, accountability, and transparency. While the retail giant is navigating this challenge, there are key lessons for businesses across all industries, including utilities, where accurate financial reporting is not just critical but also highly scrutinized by regulators.
Read MoreAs utility companies face increasing pressures from regulatory demands, shifting energy landscapes, and evolving customer expectations, the importance of digital transformation has never been greater. The intersection of finance and technology is opening new avenues for operational efficiency, data-driven decision-making, and streamlined business processes. For utilities, which operate in complex, highly regulated environments, this presents a unique opportunity to lead the way in digital transformation while securing long-term growth and sustainability.
Read MoreWEC Energy Group has chosen Lucasys Tax to augment its existing tax fixed asset and deferred income tax solution to support Wisconsin regulatory reporting processes and mitigate data integration challenges. This partnership will mitigate risks associated with the retirement of the PowerTax solution and ensure the seamless continuation of critical tax accounting and compliance processes.
Read MoreI’m reading a book, Strategy That Works by Paul Leinwand and Cesare R. Mainardi ], because, of course, that’s what you do when you are semi-retired. As I read, I reflected on how strategy at most utility companies is directed at becoming more efficient and more effective operationally while finding a way to otherwise reduce costs to offset continuing customer rate pressure. The tax department’s role today generally has 2 components both related to cost savings: (1) deliver tax savings that lower tax expense for the company or tax costs recoverable in rates, and (2) deliver costs savings from operating more efficiently.
Read MoreASC 740, or Accounting Standards Codification 740, governs how companies report income taxes in their financial statements. For utility companies, complying with ASC 740 presents unique challenges due to the industry's complex regulatory environment and the intricate nature of tax provisions, deferred taxes, and rate-regulated accounting practices. Mastering ASC 740 is essential for ensuring accurate financial reporting, mitigating risk, and satisfying both regulatory and audit requirements.
Read MoreIn today’s rapidly evolving regulatory landscape, investor-owned utilities (IOUs) face increasing pressure to ensure their tax practices are not only compliant but also transparent and defensible. With the growing scrutiny from regulators and the ever-changing tax laws, staying ahead of potential audits is more critical than ever. To navigate these challenges, IOUs must implement robust strategies for tax compliance, leveraging advanced tools and technologies that can simplify the process and mitigate risks.
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