
Manufacturing/Distribution Articles
The Impact of WIP on Manufacturing Efficiency
Posted by John George on January 14, 2025
Work-in-Process (WIP) refers to partially completed goods in the manufacturing process, encompassing costs of raw materials, labor, and overhead. Monitoring WIP helps identify production inefficiencies, optimize processes, and manage inventory effectively.
Budget Planning for Manufacturers
Posted by Jonathan Roller on December 17, 2024
Manufacturing companies must create comprehensive and realistic budgets in 2025. Key considerations for creating budgets include avoiding reliance solely on past results, seeking input from all departments, setting attainable goals, managing cash flows, and treating budgeting as an ongoing process.
Final IRS Regulations Issued - Advanced Manufacturing Production Credit
Posted by Kristin Re’ on December 03, 2024
The IRS has issued final regulations for the Section 45X advanced manufacturing production credit, which supports manufacturers producing clean energy equipment in the U.S. between 2022 and 2032. The regulations clarify eligibility, production costs, and the interplay with other credits, while also introducing substantiation requirements for material costs. Despite the clarity provided, compliance remains complex, and the credit’s future is uncertain under the incoming administration.
Prepare Your Manufacturing Company with a Business Continuity Plan
Posted by John George on November 19, 2024
A business continuity plan is essential for manufacturing companies to minimize disruptions and ensure rapid recovery during crises such as natural disasters, supply chain disruptions, or IT failures. Key steps include forming an interdisciplinary team, assessing risks, developing contingency strategies, and regularly testing and updating the plan. Proactive planning can safeguard operations and enhance resilience in the face of unexpected events.
Managing Workers’ Compensation and Unemployment Insurance: Key Strategies for Manufacturers
Posted by Douglas Muth on September 24, 2024
Manufacturers can control labor-related costs, such as workers’ compensation and unemployment insurance, by implementing safety programs and strategically managing hiring practices. Accurate employee classification, return-to-work programs, and challenging invalid unemployment claims are key strategies to reduce premiums and tax rates. Taking these steps can lead to better financial stability and increased profitability.
AI Takes the Lead in Manufacturing
Posted by John George on September 10, 2024
AI is transforming manufacturing by improving efficiency, product development, and decision-making. Key applications include predictive maintenance, quality control, and supply chain management. While AI offers significant benefits, it requires careful planning, investment, and a phased implementation approach to ensure success.
Navigating Multistate Tax Obligations: A Guide for Manufacturers
Posted by Mark Stack on August 27, 2024
Manufacturers operating across state lines must understand their multistate tax liabilities, determined by whether their activities establish a nexus in each state. The U.S. Supreme Court's Wayfair decision and updated Multistate Tax Commission (MTC) guidelines have broadened the definition of nexus, making it essential for businesses to evaluate their tax obligations in each jurisdiction through a nexus study.
How to Choose the Optimal Inventory Accounting Method for Your Manufacturing Business
Posted by Jonathan Roller on August 13, 2024
Choosing the right inventory accounting method, such as FIFO or LIFO, is crucial for manufacturing businesses as it significantly affects taxes, net income, and financial reporting. Careful consideration of your company's specific needs and circumstances is essential when selecting the appropriate method.
Investing in Automated Equipment: A Strategic Move for Manufacturers
Posted by Jonathan Roller on July 16, 2024
Investing in automated equipment can enhance efficiency, quality, and brand image for manufacturers, while also addressing skilled labor shortages and improving employee morale. However, it involves significant initial costs, ongoing training, maintenance, and cybersecurity considerations.
Key Midyear Tax-Reduction Strategies for Manufacturers
Posted by Kristin Re’ on July 02, 2024
As July marks the midyear point, manufacturers have a prime opportunity to reassess their tax strategies and implement measures to reduce their 2024 tax liabilities. Tailored to the unique circumstances of each business, the following seven tax-reduction strategies can help optimize financial outcomes and ensure compliance with current tax regulations.