After being continually renewed since the 1980s, the research credit was finally made permanent under the Protecting Americans from Tax Hikes (PATH) Act. This change allows manufacturers to plan (with certainty) for their research and development (R&D) expenditures. And, it is expected to survive any tax reform legislation that will pass in 2017. This article provides an overview of the current rules on how to claim credits for R&D spending, including how the break has been expanded for certain small manufacturers.
Audited financial statements typically come with a surprise bonus that business owners might not be aware of: the management letter. This article describes what is required to be reported in the management letter, how a company can use it and the types of comments a CPA may voluntarily opt to report to demonstrate his or her commitment to the client’s success.
Management can never be too busy to review how warehouses are laid out and how employees move around the space. Small adjustments can make a big difference in the bottom line. This article offers three steps toward more efficient warehouse management.
Many manufacturers are struggling with attracting and retaining skilled workers and complying with government regulations, such as the Department of Labor’s new overtime rule and the shared-responsibility provisions of the Affordable Care Act. This article reveals surprising statistics about health insurance coverage by small businesses. It also provides compelling reasons to buck the trend to not offer health coverage and offers creative alternatives for controlling labor costs. A Sidebar highlights the benefits of hiring veterans, including a temporary tax break.
A business valuation is important when deciding whether to transfer ownership to the next generation or to sell the business to a third party and give the next generation the sales proceeds (or alternative investments purchased from those proceeds). This article describes business valuation methods and the current state of the M&A market.
In May 2015, the Department of Labor (DOL) finalized new overtime rules that update the thresholds for classifying workers as nonexempt and highly compensated. The long awaited changes will increase pay for more than 4 million workers. This article explains changes that will go into effect starting on December 1, how they will impact manufacturers and how business can legitimately reduce overtime costs. A Sidebar highlights the stance the National Association of Manufacturers has taken on the new rules.
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.
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.
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.