Manufacturing companies face unique accounting challenges due to the complex nature of their operations such as including inventory management. In this article, we will explore some key considerations and best practices in inventory management. Inventory Management: Effective inventory management is critical for manufacturing companies to control costs and ensure smooth operations. Accounting plays a crucial… [keep reading…]
Category: Manufacturing
2022 Tax Year Changes That Could Impact Your Manufacturing Company
The 2022 Tax year is swiftly coming to an end. Taxpayers should be on the lookout for three provisions effective January 1, 2023 which could have a significant impact on entity returns for the manufacturing industry; (1) the Tax Cuts and Jobs Act (TCJA) of 2018’s amendment to §174, (2) the Internal Revenue Code (IRC)… [keep reading…]
Impacts of ASC 606 for Manufacturing Companies
As private companies are now a few years into the implementation of Accounting Standards Codification (ASC) 606, Revenue from Contracts with Customers, it is important to note the impact this has had on the manufacturing industry and understand the changes to revenue recognition so owners may better operate their businesses. By definition, a manufacturer should… [keep reading…]
U.S. Companies with Foreign Sales May Benefit from Tax Credit
Included in the many provisions of 2017’s Tax Cuts and Jobs Act (“TCJA”) was the creation of the Foreign Derived Intangible Income (“FDII”) Deduction for tax years beginning after December 31, 2017. While the naming of the deduction may lead taxpayers to question their eligibility, many U.S. companies with foreign sales may find that they… [keep reading…]
Changes to Tax Treatment of R&D Costs on the Horizon
While the Tax Cuts and Jobs Act (“TCJA”) is nearly four years old, some of the key provisions of the legislation have not yet taken effect. Among these provisions are the changes to Section 174 of the tax code, which covers the deductibility of research and development expenditures. Companies that operate within the manufacturing industry… [keep reading…]