Connections for Success

 

Manufacturing and Distribution

03.18.20

Work Opportunity Tax Credit Extended Through 2020
Mark A. Thomson

2020 may be a good year for hiring, since the Further Consolidated Appropriations Act extended the Work Opportunity Tax Credit (WOTC) through 2020. This federal income tax credit is available to businesses that hire members of certain “targeted” groups. Let’s examine how the credit can benefit your business. Reviewing the basics The WOTC encourages businesses […]

02.27.20

Independent Contractor vs. Employee: Understanding Worker Designation
Seamus M. Donoghue

Beware: Worker classification is an IRS hot button Treating a worker as an independent contractor (IC) rather than an employee can provide a business with important advantages. Whether a worker is classified as an IC or an employee depends on several factors targeting the level of control you exert over the worker. Per the IRS, […]

01.08.20

Why the Segmented Income Statement is a Powerful Management Tool
Mark A. Thomson

A company car can be a valuable perk for business owners, salespeople and other key employees who use their vehicles for business purposes. Now may be an ideal time to acquire business vehicles, as the Tax Cuts and Jobs Act of 2017 (TCJA) more than tripled the “luxury auto” threshold, from an original cost of $15,800 to an inflation-adjusted cost of just over $50,000. Depreciation deductions for 2019 are not limited until a vehicle’s cost exceeds $50,400, and accelerated depreciation opportunities are available.

12.13.19

On the Road: Let’s Review the Tax Implications of Providing Company Cars
Joel A. Herman

A company car can be a valuable perk for business owners, salespeople and other key employees who use their vehicles for business purposes. Now may be an ideal time to acquire business vehicles, as the Tax Cuts and Jobs Act of 2017 (TCJA) more than tripled the “luxury auto” threshold, from an original cost of $15,800 to an inflation-adjusted cost of just over $50,000. Depreciation deductions for 2019 are not limited until a vehicle’s cost exceeds $50,400, and accelerated depreciation opportunities are available.

11.25.19

Making “Made in the USA” Work
Seamus M. Donoghue

“Made in the USA” is a hot marketing trend that can help manufacturers differentiate products in the marketplace. If manufacturers can obtain goods domestically faster and at lower costs than foreign suppliers can offer, it seems like a win. But, when “homegrown” products are more expensive than foreign-sourced products, purchasers may balk at the higher price tag.

10.25.19

Sales Tax After Wayfair: What Manufacturers Need to Know
Brandon W. Vahl

The U.S. Supreme Court’s landmark decision in South Dakota v. Wayfair affects many businesses, including manufacturers,  that buy or sell products across state lines. It upheld South Dakota’s “economic nexus” statute that requires certain out-of-state sellers to register for and collect sales tax in the state, even if they lack a physical presence there.

09.16.19

Five Steps to “Recession-Proof” Your Business
Kenneth Tornheim

The manufacturing industry has enjoyed several years of prosperity. But no business is recession-proof. Proactive owners take steps, while times are good, to prepare for inevitable downturns in financial performance. Here are five strategies to consider. Monitor Cash Flow Shore up your cash flow management practices now. Project your cash flow three and six months […]

08.13.19

Revenue Recognition Is Here: Are You Ready?
Mark A. Thomson

Non-public manufacturers and distributors are affected by the 2019 GAAP change in how revenue is recognized.  Have you made changes already?  Do you understand how your financial statements will be modified for 2019?  Have you discussed this with your bank? Industry information collected indicates that most companies and firms are still struggling with understanding and […]

07.22.19

Why Wait to Deduct Your Purchases? Turbocharge Tax Deductions With Bonus Depreciation and Sec. 179
Seamus M. Donoghue

“Don’t put off until tomorrow what you can do today,” Benjamin Franklin once advised. This timeless wisdom applies in many business scenarios, from taking advantage of growth opportunities to claiming tax deductions. In general, business owners should jump on tax-saving opportunities as soon as possible due to the time value of money. Two especially lucrative […]

06.06.19

Quality of Earnings Reports Look Beyond the Numbers
Joel A. Herman

In mergers and acquisitions, potential buyers as part of their due diligence may obtain a quality of earnings (QOE) report to evaluate the validity and sustainability of the seller’s reported earnings. It is also not uncommon for companies contemplating a sale to obtain their own QOE reports to spot potential problems that might derail a […]

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