Effective for your fiscal years beginning after December 15, 2018, all non-public entities will need to implement the new revenue recognition standards as outlined in Accounting Standards Update 2014-09 Revenue from Contracts with Customers (Topic 606) (ASU 2014-09). The standard requires all companies to take a look at their revenue recognition, measurement of revenue, financial statement disclosures, systems, processes and internal controls to ensure they are in compliance with this new standard. 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.
Is an ERP System right for you?
An Enterprise Resource Planning (ERP) system is a business process management software that allows a manufacturing company to integrate a number of applications to more effectively manage their business and automate many back-office functions. With an ERP system, you no longer have to work with multiple systems for manufacturing, inventory, and accounting, as it houses all of these functions in one place. The benefits of an ERP system for a manufacturing company include:
• A global, real-time view of company data,
• Improved financial reporting and compliance,
• Increased internal controls over core business functions, and
• Enhanced customer service.
Of course, as a company owner, you prefer your company’s tax liability to be as small as possible. Transfer pricing is a gray area of business tax law that is becoming increasingly more challenging for taxpayers who are multinational enterprises (MNE). Proper transfer pricing practice through strategic tax planning can reduce your overall tax liability while ensuring compliance with government regulations.
To help you remain on the right side of transfer pricing, and to help you avoid an IRS audit as a result of poor transfer pricing planning, we’ve compiled some basic information and direction. In addition, the MKS&H accounting experts are available to answer your specific transfer pricing questions and help you remain compliant.
Change – Some people say that’s what our country wants, and the accounting standard setters have delivered!
The change is related to accounting for warranties. The good news is that the differences between accounting for warranties under current generally accepted accounting principles and the new revenue standard are minimal. Warranty accounting itself remains unchanged, but warranties will need to be accounted for as separate performance obligations under the new standard, if they provide the customer with additional services. (A performance obligation is defined as a promise to transfer a good or service.)
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.
Is Next-Shoring Your Next Move?
The one constant in life is change, and the manufacturing industry is changing like never before. One of the most important decisions a manufacturer has to make is where to produce their product. Cost is usually the driving factor when determining which location is best for a company. However, with the ongoing changes in the industry, there are other factors to consider when deciding the best place to manufacture, including:
Maryland has a strategic location in the mid-Atlantic, in one of the nation’s busiest corridors. Approximately one-third of the US population lives within a day’s drive, and the state offers many advantages for businesses. It has a deep port, rail lines, major highways, and a highly educated workforce. Maryland ranks first in the nation for having the highest percentage of professional and technical workers.
However, Maryland generates less than 10 percent of its GDP in its manufacturing sector, and employs less than 10 percent of its workers in manufacturing. Manufacturing provides an engine of economic growth, good quality jobs, and opportunity for investment, and state and local governments have developed a myriad of ways to encourage new and expanded manufacturing operations in the state.
MKS&H’s expertise in the manufacturing and distribution field allows us to help clients overcome some of their largest hurdles. The top question stemming from a highly competitive global marketplace in the manufacturing industry is, “What strategies can I employ to help me cut costs in the production cycle?” The majority of the time this leads to a conversation around Lean Manufacturing and Six Sigma philosophies, but we also look deeper into our client’s supply chain strategies.