Manufacturing

As published in Jackson Magazine A few important factors should play a major role in the timing and outcome of a business transition. Perhaps one of the biggest obstacles in a successful business transition is coming to a realistic, optimal value. Often times, owners think they know how much their business is worth (this may be based on what they have heard from colleagues or what they have read in recent industry publications). However, determining the value depends on many factors, some of which include:  Your industry segment  The recent history of performance Inorganic growth strategies focused on product and service differentiation The quality of the underlying business, patented and proprietary methods Customer base transferability and access to new markets, customers and technology...

Download a copy of this article The federal research and experimentation tax credit, popularly known as the “R&D credit,” has been available since the 1980s to taxpayers who develop new products or manufacturing processes or improve upon existing products or manufacturing processes. But while the credit can be quite beneficial, historically it has been underutilized by small businesses — even those that devote a significant portion of their budgets to R&D. This may be changing, however, as legislation passed late last year inspires many small businesses to revisit the credit. The Protecting Americans from Tax Hikes (PATH) Act of 2015 made the R&D credit permanent, and also made it easier for small businesses to benefit from the credit...

The Financial Accounting Standards Board (FASB) is considering whether to require businesses to provide more details in their financial statement footnotes about their inventories. Investors want more information about changes in inventory, as well as breakdowns of inventory by such factors as component, age and geographic location. Such changes are expected to have a significant effect on most retailers, manufacturers, wholesalers and construction contractors.Considering new disclosures Accounting Standards Codification Topic 330, Inventory, requires limited information about inventory...

The Protecting Americans from Tax Hikes (PATH) Act of 2015 accomplished more than just extending certain tax breaks. It also made some taxpayer-friendly provisions permanent — including the shortened recognition period for companies that convert from C corporation to S corporation status. This change is causing many manufacturers and distributors to re-evaluate their corporate status. After weighing the pros and cons, many companies are electing Subchapter S status to gain enhanced flexibility in business decisions and to lower taxes...

Owners of manufacturing and distribution companies are often so focused on the here and now that planning for future catastrophes may fall through the cracks, especially if the owners are young and healthy. But operating without a valid buy-sell agreement is like driving without car insurance. Failure to execute an agreement or to update an old buy-sell for ownership changes can cause financial distress and even tear a company apart if tragedy strikes. Avoiding family business transfer pitfalls Many manufacturing and distribution companies are family owned...

As featured in the July 2016 issue of Jackson Magazine.  According to the U.S. Department of Homeland Security, cyber attacks on manufacturers nearly doubled in 2015, with cyber incidents increasing 20 percent...

On December 18, 2015, Congress enacted the Protecting Americans from Tax Hikes (PATH) Act of 2015, which extended and made permanent the Research and Experimentation (R&E) or Research and Development (R&D) Tax Credit. The credit had expired on December 31, 2014. In addition to permanently extending the credit retroactively to January 1, 2015, Congress also added several taxpayer-friendly provisions to the credit. Background One of the most underutilized and misunderstood tax savings opportunities for businesses is the R&D credit...

Lease accounting standards are being revised for the first time in decades. If your organization leases property or equipment, the new rules will affect you — perhaps greatly. Here’s an overview of what is changing and how to prepare. Balance sheet transparency Two big changes are coming...

Manufacturers and distributors spend significant resources choosing the right information technology (IT) equipment to invest in — and securing devices throughout their useful lives with firewalls, passwords, encryption, antivirus software and dedicated staff. But security sometimes falls by the wayside when assets are retired. Ongoing attention to security is a priority, because IT equipment typically houses a company’s most valuable intellectual property. Security breaches Just because data appears to have been deleted from a device’s hard drive doesn’t mean it’s gone...

The IRS created the Taxpayer Bill of Rights to make it simple for taxpayers to know their rights when dealing with the IRS. If you have a tax issue, you are guaranteed assistance through the Taxpayer Advocate Service, a department whose job it is to ensure that every taxpayer is treated fairly. For more information about the Taxpayer Bill of Rights or Taxpayer Advocate Service, read Publication 1, "Your Rights as a Taxpayer," or contact a qualified tax expert. Tip courtesy of IRS...