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Manufacturer Accounting

We work with a number of Manufacturers

It’s important to work with a CPA firm that understands your business, your industry, and the tax law related to it.

We love manufacturers! Manufacturers have unique accounting and tax challenges. Our team enjoys helping our manufacturing clients deal with those challenges! In addition to the financial and tax planning we do for our all our business clients, we assist our manufacturing accounting clients with building or revising a Bill of Materials, determining inventory values including burden rates and assemblies, and reviewing tax planning opportunities specific to manufacturers.

From a tax perspective, there are many new opportunities with the Tax Cuts and Jobs Act. Some of the areas of particular interest to manufacturers are:

  • R&D credits – the new income thresholds for alternative minimum tax(AMT) could make the R&D credit a much more valuable proposition now for pass through entities as well as C Corporations which are no longer subject to AMT.
  • The 21% flat C Corporation tax rate – The new 21% flat C Corporation tax rate has lead to various planning opportunities regarding how money is removed from the entity, and the structure of the entity or entities in which manufacturers hold their businesses.
  • The 20% pass-through deduction – For pass-through entities, the 20% pass-through deduction is quite a valuable tax savings area. Planning around this tax savings opportunity could greatly enhance investment opportunities in the growth of your manufacturing business.
  • Bonus depreciation- with 100% deduction in the year of purchase for new and used equipment available now, timing the purchase and financing methods of equipment is a key planning point for tax planning, financial reporting and cash flow.
  • The 263A adjustments that have plagued many manufacturers may now be eliminated for some as you can now elect cash basis reporting for tax purposes when your gross revenues are under $25 million annually.

All of the challenges and opportunities for planning in these areas make partnering with an accounting firm that specializes in manufacturing accounting critical to your manufacturing business. We help our clients make a plan to best utilize these tax savings tools and reporting methods and then assist them in tracking their performance to ensure that their plan really works for them.

We work with manufacturers in the Sacramento and Fairfield areas and beyond. Thanks to modern technology, we are not hindered by location and can provide our manufacturing accounting services to manufacturers from anywhere in the United States.

Click here to request a free initial consultation.

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