The Tax Reform Act’s Impact on Manufacturers
How much will the tax law changes actually impact your manufacturing business? As you probably are aware of the purpose behind the tax law was to reduce taxes across the board and to level the playing field for international business. So what will the impact be for you and your bottom line? That will depend on how your business is structured for U.S. tax purposes. Below are descriptions of some of the more prominent federal income tax changes which will impact manufacturers for 2018 and beyond. Read More
It has been three decades since we have had bold new tax reform. The last time this level of change occurred was in 1986, which was under President Ronald Reagan. The new tax reform bill could bring around change for manufacturers, and in a very positive way making life easier on American manufacturing companies. America is known to have the highest tax rates when it comes to corporations as well as pass-through entities. With this new legislation, it would be able to provide tax breaks for many manufacturers as well as allowing them to reinvest more money into their companies. This would allow them to grow as well as create new jobs for the local area. This could really start the economy booming.
Does your manufacturing facility want significant tax incentives that last up to 10 years? Through the recent legislation, More Jobs for Marylanders Act, Maryland manufacturers are now eligible for 10 years of tax incentives based on job creation.
Manufacturers are being revolutionized by digital technologies. Digitalization is the use of digital technologies and data in order to create revenue, improve business, replace and transform processes, and create a new environment for digital business. Digitalization is integrated into all aspects of our life, and the manufacturing industry is no different. Digitalization is enabling end consumers to be more empowered, creating transparency with suppliers, enabling flexible business models with more customer-focused business processes, enhancing security, and at the same time, allowing for better analysis.
Can you read the tealeaves of your organization and predict what the future will hold? We may not be able to look into a crystal ball and know the next big fad in manufacturing; however, new technology is on the rise that will help manufacturers improve how they monitor their equipment and production lines.
You may have heard the terms UNICAP or 263A, but what does it mean?
IRC Section 263A details the uniform capitalization (UNICAP) rules that require certain costs normally expensed to be capitalized as part of inventory for tax purposes.
On February 25, 2016, the Financial Accounting Standards Board (FASB) released new guidance on leases. The amendment goes into effect for fiscal years beginning after December 15, 2018, including interim periods within these fiscal years. This is an important change to be aware of, as it places most leases on the balance sheet and stops companies from only including them as footnotes.
This could be a major adjustment for manufacturing companies, especially for those with operating leases on equipment that they use on a day-to-day basis. Read More
As a company owner, you probably spend a lot of time managing the various risks within your company. You do it by looking at price levels, reviewing fixed costs, and understanding current market changes. But, by focusing on the methods you’ve always followed, you might not get a true picture of your current level of risk and how you need to adjust it to stay competitive.
Have you ever considered managing risk by managing your margins?
The world of manufacturing accounting is full of volatility. Margin management is one way to manage that uncertainty, by looking at costs and revenues together, instead of seeing them in independent silos. Read More
Manufacturing Day was established six years ago, in part to help manufacturers showcase their organizations as economic drivers of the future to a new generation of workers – millennials!
This year, Manufacturing Day will be celebrated across the country on or around October 7th. It was initially founded by four organizations – Fabricators and Manufacturers Association International, National Association of Manufacturers, Manufacturing Extension Partnership and Manufacturing Institute –and has grown to 1,047 events across the country.
Maryland manufacturers expand their product sales and increase profits by utilizing the abundance of resources in the region to export their goods to foreign countries. Over the past 5 years, the number of manufacturers exporting merchandise from Maryland increased 33.7%, which accredits to small and medium sized businesses.