Why use qualified employee benefit plan auditors?

Posted by Dawn Möeder, CPA of England and Wales on May 2, 2017

The Employee Retirement Income Security Act of 1974 (ERISA) states, in short, that companies must have their annual benefit plan report (Form 5500) audited if you have 100 or more participants in your plan (Companies within the range of 80 to 120 employees have additional criteria to consider). It is the responsibility of the plan administrator to hire independent, qualified public accountants to perform the audit. Manufacturing companies may look to keep costs down by hiring a less experienced accountant. But you’ll want to pay now to save yourself later.

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Topics: Manufacturing & Distribution, Accounting Tips, Audit

4 Ways to help stay on top of receivables

Imagine, someone in sales closing a massive deal. It’s a new customer with a huge, custom order. Great! The production team works under the tight deadline. The new client is pleased that everything is shipped on time and comes back looking spectacular. But wait, did you get paid?

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Topics: Manufacturing & Distribution, Accounting Tips, Audit

Working with the generation gap

Posted by Dawn Möeder, CPA of England and Wales on May 2, 2017

With people retiring later and the next generation of employees graduating, it is currently possible to have five generations working together. What a thought! All generations have different ways of communicating. They hold different ideas about work and management. They are just different. All of these articles popping up on older generations and younger generations, and their negative ideas about the other, it’s going to lead to some tension. As a CEO or owner of the company, it’s your job to make sure that everyone is happy, or at least coexisting.

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Topics: Manufacturing & Distribution, Accounting Tips, Audit

It’s time to jump on the social media truck

Posted by Dawn Möeder, CPA of England and Wales on May 2, 2017

If you’ve been on the fence about social media, it’s high time you jump on the truck and deliver content. Social media isn’t going anywhere. It’s evolving, and so should your manufacturing company. It doesn’t have to be expensive. It can be effective. Even if you do not sell directly to the public, it can work for you, as long as you know how to work the platform. 

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Topics: Manufacturing & Distribution

How manufacturers can bridge the cash gap

Accounts receivable is often one of the most significant assets on a manufacturer’s balance sheet.  However, the faster you’re able to convert receivables to cash, the sooner you’re able to pay suppliers, employees, and lenders — and the less likely you’ll be to draw on your line of credit to make up for working capital shortfalls.

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Topics: Manufacturing & Distribution, Accounting Tips, Tax, Audit

Creative Ways for Manufacturers to Attract Fresh Talent

Young adults entering the workforce may not consider factories and distribution facilities as the most glamorous places to begin a career. But owners of manufacturing companies know firsthand just how rewarding careers in this sector can be, both financially and intellectually. Some have found creative ways to breathe new life into their mature companies by enticing millennials—roughly defined as people born between 1980 and 2000—to join their workforces and take the first step into developing a career in the manufacturing sector.

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Topics: Manufacturing & Distribution

“Made in the USA” Makes a Comeback

Posted by Callie Nixon, Audit Senior II on Apr 15, 2016

In recent years, it appears that the trend of outsourcing to overseas suppliers and contractors may be losing some of its luster. Many businesses are returning to U.S. manufacturers—also known as “reshoring”—to obtain goods faster and at lower costs than foreign suppliers can offer. What’s more, “Made in the USA” tags and labels can win over domestic consumers who want to feel good about their purchases.

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Topics: Manufacturing & Distribution

Nexus Issues in the Manufacturing and Distribution Industry

In the wake of the recession, states and municipalities are seeking to boost revenue by prioritizing the collection of taxes from out-of-state companies. Some states have even created new departments devoted exclusively to finding out-of-state companies that should be paying taxes but are not. For example, the Texas Comptroller’s Office has a department focused on such companies, known as the Business Activity Research Team, or “BART.” States are also taking advantage of cross-border agreements with other states’ departments of revenue to share information and are collaborating with federal customs agents. While it may be difficult to determine whether your activity in other states triggers a tax liability (i.e., if you have “nexus”), ignorance is no defense and the penalties for noncompliance can be steep, making this a critical issue for small businesses.

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Topics: Manufacturing & Distribution

4 IRS Hot Buttons

Posted by Matt Peck, CPA, Partner, Tax Services on Apr 15, 2016

Defending your business against tax audits

The IRS has many criteria they consider for selecting tax returns for examination. Here are some items that the IRS may target on a manufacturer’s 2015 tax return—and ways to help safeguard against an IRS audit.

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Topics: Manufacturing & Distribution

Inventory Fraud

Knowledge Is Your First Line of Defense

Inventory is one of the biggest assets on a manufacturer’s balance sheet. It’s also one of the hardest assets to measure and track. Thousands of transactions flow through the inventory account each year—and many of these journal entries require subjective estimates, such as overhead allocations, write-offs, and valuation adjustments. In addition, many employees have direct daily access to inventory or inventory accounting records, providing an ongoing temptation to steal or cook the books.

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Topics: Manufacturing & Distribution