Winter | 2019
Tax Cuts and Jobs Act
Four ways tax reform could benefit U.S. manufacturers
The Tax Cuts and Jobs Act (TCJA) is long and complicated. Its effects will vary from business to business, depending on each one’s structure and the nature of its operations. This article highlights four major changes that are likely to save taxes for manufacturers starting in 2018: 1) a lower tax rate for C corporations, 2) lower tax rates for individual owners of pass-through entities, 3) changes to the alternative minimum tax (AMT) rules, and 4) expanded first-year Section 179 and bonus depreciation deductions. On the flip side, a sidebar identifies unfavorable TCJA provisions. 

Critical questions to ask about internal controls
The median fraud loss among manufacturers was almost double the median loss for all industries, according to the 2018 Report to the Nations published by the Association of Certified Fraud Examiners (ACFE). Internal controls are a company’s first line of defense in preventing and detecting fraudulent activity. This article identifies five questions proactive managers consider when evaluating the strength of their company’s internal controls. 

Entity choice: Is it time for a switch?

From a federal income tax perspective, there isn’t one universal business structure that fits all manufacturers. The Tax Cuts and Jobs Act introduces new considerations for those who are deciding on the type of entity to use for a business venture. This article compares the pros and cons of operating as a C corporation vs. a pass-through entity, such as a sole proprietorship, partnership, S corporation or limited liability company (LLC).

Moving your business to the cloud

Cloud computing is the wave of the future. Some manufacturers and distributors haven’t yet moved to the cloud, possibly because their staff resources and IT expertise are limited. Others have moved to the cloud, but they’re dissatisfied with their current service provider. This article highlights the advantages of cloud computing, along with some key considerations to help evaluate prospective cloud computing service providers.  

Firm News:
 New team leaders join HMWC

HMWC CPAs & Business Advisors is pleased to announce that Jonathan Smeragliuolo, Tax Manager, and Myra Miller, Marketing Director, have joined the firm.

HMWC CPAs & Business Advisors | (714) 505-9000 | (714) 505-9200 F |