Manufacturing and Distribution
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.
Five Steps to “Recession-Proof” Your Business
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 […]
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 […]
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 […]
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 […]
Four Signs of an Unreliable Budget
Every business should prepare an annual budget, but it is especially important in the capital-intensive manufacturing sector. Comprehensive, realistic budgets allow you to identify potential shortages of cash, production capacity constraints and other threats. They also can help you develop a strategic plan that takes advantage of opportunities to improve performance. Here are four signs […]
Family and Medical Leave: Will Your Program Qualify for a Federal Tax Break?
The Tax Cuts and Jobs Act introduces a tax credit for certain employers that provide family and medical leave programs. There are rules and requirements that must be satisfied to take advantage.
FASB Expands VIE Exception for Private Companies
Joel A. Herman
Private manufacturers often set up separate legal entities to hold real estate or operate new but separate business ventures. Under current accounting rules, these entities are typically considered variable interest entities that must be consolidated on to the controlling entity’s financial statements under current GAAP.
Critical Questions to Ask About Internal Controls
When fraud strikes manufacturers, the effects can be devastating. The median fraud loss in the manufacturing sector was $240,000, according to the 2018 Report to the Nations published by the Association of Certified Fraud Examiners. Internal controls are a company’s first line of defense in preventing and detecting fraudulent activity.
Moving Your Business to the Cloud
Mark A. Thomson
Many manufacturers and distributors have already jumped aboard the cloud computing bandwagon, but is it right for your business?