Manufacturing Consulting and Accounting Services

manufacturingllustraiton

Innovative Ideas for Competing and Winning.

Running a manufacturing or distribution business requires an understanding of the unique circumstances and dynamics of the industry. The impact of automation, higher-level technology service needs, shifting world markets, workforce challenges, complex new laws and regulations, and countless other issues demand your attention. Today's business climate has changed dramatically from what it was twenty years ago - or even five years ago. You cannot thrive by just producing an excellent product.

What Should You Be Focused On?

handBagOfMoney

Tax Credits

Staying abreast of the newest tax laws and opportunities will help you minimize your tax liability. Here are just a few of the tax credits available:

  • IC-DISC (Interest Charge Domestic International Sales Corporation)
  • Research and Development (R&D)
  • Wisconsin Manufacturing Tax Credit
graphUpRight

Depreciation Incentives

There are a couple of depreciation incentives that manufacturers should take advantage of. These include:

  • Section 179 deduction for qualifying fixed asset purchases
  • Doubling of bonus depreciation to 100% through 2022
dropBox

Product Costing

Product costing helps you define all the expenses including direct materials, direct labor, and overhead for a product. Having accurate costs allows you to determine where to control expenses, set appropriate pricing, and improve profit margins.

gearIcon

Operational Efficiencies

Keeping your business running efficiently, with a focus on profitability, will ensure you are making the most of your daily operations. This should include regular operational assessments of your supply chain management, inventory management, product costing, and continuous process improvement plans.

SpecialisedServices

Specialized Industry Services

Business professionals need easy access to information to make timely decisions. SVA has what you need, when you need it. Choose a topic below or just contact us directly. Our expertise is ready anytime you need it.

Section 179 enables manufacturers to write off qualifying fixed asset purchases in the year those purchases are made. The Section 179 deduction applies to tangible personal property (such as machinery, equipment, and office furniture) which is purchased for use in a trade or business. Recent legislation increased the scope of Qualified Improvement Property (QIP) to include the following improvements to non-residential property after the date the property was first placed in service: roofs, heating, ventilation, air-conditioning, fire protection, and alarm and security systems.

Bonus Depreciation to 100% became available with the Tax Cuts and Jobs Act (TCJA). Effective for assets acquired and placed in service after September 27, 2017, the provision applies to both new and used property. As such, this provision heightens the importance of cost segregation studies. Costs identified as tangible personal property and land improvements are eligible for immediate expensing whether the property is new construction or acquired property. The 100% expensing is available through 2022, after which it begins phasing out by 20% per year.

Businesses and individuals have specific foreign reporting requirements and, in some cases, U.S. withholding is required on payments made to a foreign entity or person. Significant penalties can apply if you are not aware of these requirements and fail to meet these reporting and withholding obligations. Our professionals can assist you in meeting these obligations and in international tax planning through our network of specialists and international affiliates. Here are a few of the areas we can evaluate for your business:

  • Aliens and Expatriates IRS Rules
  • Entity Selection for International Businesses
  • Transfer Pricing Rules
  • Structuring of Transactions

The Research and Development (R&D) Tax Credit is calculated as a percentage of the expenses related to R&D activities. These activities could include:

  • Improving a current process
  • Creating a new production process
  • Developing a new technology or improved product

SVA can help you through the complex calculations and documentation needed to benefit from this often underused tax credit.

eGuide: The Business Owner’s Guide to R&D Tax Credits

SVA's Supply Chain Management education and consulting services focus on your specific organization, the challenges you face, and the objectives you are working towards. Together, we strategize and instruct in the following areas:

  • Supply Chain Planning Process
  • Inventory Management
  • Logistics

Nexus, also known as sufficient physical presence, determines whether an out-of-state business selling products into a state is liable for collecting sales and use tax on sales into the state. Nexus is required before a taxing jurisdiction can impose its taxes on an entity. Congress enacted Public Law 86-272 which protects companies with only minimal state activities from being taxed. Our professionals can assist you in determining your company's multistate tax situation, take steps to insulate your activities from overzealous states, and minimize your overall state tax liability.

IC-DISC is a powerful tax-savings opportunity for U.S. businesses who export a minimum of $1 million in goods annually. Companies who export less than $1 million may also benefit from this tax-savings opportunity with a review of costs vs. benefits to determine the best options. It is available to manufacturers and distributors and it offers them permanent tax savings primarily resulting from a reduction in the tax rate on qualified dividends.

Through 2025, taxpayers can deduct up to 20% of their QBI from a pass-through entity (sole proprietorship, LLC, partnership, or S corporation). Phaseouts begin when taxable income exceeds $164,900 for single taxpayers or $329,800 for married couples (other limitations also apply).

More information

Everyone is familiar with sales tax and the role it plays as a consumer. However, understanding the complexities and laws involved with sales and use tax as it applies to business is another story. Reduce the impact of sales tax on not only your business but your customers by proactively planning for the tax consequences of your business-related activities.

The Wisconsin Manufacturing Tax Credit applies to those businesses that own or rent and use real and personal manufacturing or agriculture property in Wisconsin. If the company is a partnership, LLC, or an S corporation, the credit will pass through to its owners. The credit is 7.5% of "eligible qualified production activities income." With a maximum Wisconsin tax rate of 7.65% for individuals, this credit will virtually eliminate the Wisconsin tax on manufacturing and agriculture income.

If you hire individuals from a specified disadvantaged targeted group, you could be eligible for a credit worth 25-40% of their wages. Find more information on the tax credit extension.

Resources

the-business-owners-guide-to-rd-tax-credits-2

The Business Owner's Guide to R&D Tax Credits

There is a misconception that R&D tax credits are reserved for companies that have a dedicated R&D staff. The truth is any business can qualify as long as they adhere to a few simple guidelines outlined in this eGuide.

Awards and Affiliations

Forbes Names SVA as 2021 America's Best Accounting Firms
sva-certified-public-accountant-affiliation-accountingtoday-top100-firms-2021
sva-certified-public-accountant-affiliation-inside-public-accounting-top-100-firms-2020
sva-certified-public-accountant-affiliation-inside-public-accounting-best-of-the-best-firms-2020
sva-certified-public-accountant-affiliation-wicpa
sva-certified-public-accountant-affiliation-great-place-to-work-2021
sva-certified-public-accountant-affiliation-m-power-business-champion-program
sva-certified-public-accountant-affiliation-ib-executive-choice-award-2020-winner
sva-certified-public-accountant-affiliation-aicpa
sva-certified-public-accountant-affiliation-aicap-ebpaqc-member

Locations

Madison, WI
1221 John Q Hammons Dr, Suite 100
Madison, WI 53717
(608) 831-8181

Milwaukee, WI
18650 W. Corporate Drive, Suite 200
Brookfield, WI 53045
(262) 641-6888

Colorado Springs, CO
PO BOX 62786
Colorado Springs, CO 80962
(719) 413-5551

Contact

(888) 574-4782
info@SVAaccountants.com
BizTips

Are you in the know on the latest business trends, tips, strategies, and tax implications? SVA’s Biz Tips are quick reads on timely information sent to you as soon as they are published.

Connect With Us

Copyright © 2021 SVA Certified Public Accountants