10.31.16
Accelerating Depreciation Deductions: A Cost Segregation Study May Reduce Taxes
Businesses that acquire, construct or substantially improve a building may want to consider a cost segregation study. These studies combine accounting and engineering techniques to identify building costs that are properly allocable to tangible personal property rather than real property. The result may allow businesses to accelerate depreciation deductions, thus reducing taxes and boosting cash flow. This article details how a cost segregation study works.

08.29.16
Managing Inventory with Cycle Counting
The end of a fiscal year is an exciting time for most organizations. There is a push to collect receivables, pay vendors, evaluate accounting estimates and start planning for the next fiscal year. . It is safe to say that there is one particular component of year-end that most manufacturers dread: the inventory count! Instead of counting inventory periodically, manufacturers should explore the opportunities with adopting cycle counting, which we detail in our latest Manufacturing and Distribution Group blog.

07.26.16
Understanding Tax Issues Related to Shareholder Loans
Owners occasionally borrow funds from their businesses. If the company has extra cash on hand, a shareholder loan can be a convenient and low-cost option. This article explains the importance of treating these transactions as bona fide loans and charging an “adequate” rate of interest. It also provides a list of factors the IRS considers when evaluating advances to shareholders.

06.16.16
Six Simple Steps to Shrink Your Outstanding Receivables
When cash flow does not keep pace with work flow, manufacturers need to take a hard look at their billing practices to ensure that jobs do not fall through the cracks. This article outlines ways manufacturers can strengthen their collection processes. A Sidebar highlights a possible tax break for uncollectible accounts.

05.10.16
The Ins and Outs of Using Accountable Plans to Save Taxes
When an employer pays an expense reimbursement or advance to an employee, the IRS generally considers the arrangement to be disguised taxable compensation. Accountable plans are an exception to this rule, allowing payments to qualify as tax-favored expense reimbursements. This article explains how to set up accountable plans to save taxes for both employees and employers.

04.19.16
Following the New PATH: Recent Tax Law Extends Depreciation-Expensing Tax Breaks — and More
Creating a three- to five-year capital expenditures budget is important for manufacturers and distributors since they tend to invest heavily in equipment, technology upgrades and leasehold improvements. Among numerous other provisions, the Protecting Americans from Tax Hikes (PATH) Act of 2015 retroactively reinstated many tax breaks related to depreciating these assets which can affect the timing of when companies will place these assets in service. This article provides details on some depreciation-related breaks that have been permanently carved into the IRS rules and others that have been extended for several years. It also highlights the importance of planning ahead to reap the full benefits of the broad-reaching PATH Act.

03.21.16
Social Media Tips for Manufacturers
Social media can be an inexpensive, but effective, way to market products and brands. However, does it work for manufacturers, especially those that do not sell directly to the public? Some trendsetting manufacturers have successfully integrated social media into their marketing campaigns to drive traffic to their websites, build brand loyalty and attract new talent. […]

02.12.16
Significant Change in Lease Accounting Could Cause Major Headaches
Nearly every manufacturer leases equipment or real estate. For decades, companies were not required to report many lease-related assets and liabilities on their balance sheet. That is all about to change under a controversial new lease accounting standard that is scheduled to be published in early 2016. Companies should be proactive in analyzing their lease […]

01.19.16
Cash Flows: Thinking Ahead
Capital is the lifeblood of any manufacturing business. Each week, your payroll must be met, overhead covered and suppliers paid. Meanwhile, your plant’s customers might not pay on time — or in full — and unanticipated expenses may come up, straining your cash flow. Cash flow forecasting can help eliminate much of the heartburn associated with managing a manufacturing facility’s day-to-day capital.

12.08.15
Planning for Major Changes to Federal Rules on Employee Pay and Benefits
One of a company’s most dreaded tasks is probably managing HR. The rules are ever-changing and becoming increasingly complex. This article discusses two recent examples: the DOL’s proposed changes to the overtime rules and the new Form 1095-C and 1094-C reporting requirements under the ACA. The struggle to stay atop these types of regulatory changes often prompts smaller manufacturers and distributors to outsource their HR functions.