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MANUFACTURING & WHOLESALE DISTRIBUTION INDUSTRY NEWS
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| January/February 2018 |
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A New Year of Trends
As a new year begins, new trends are emerging in the manufacturing industry. These trends consist of growth through new or improved products, relief from strict regulations and high taxes, a need for a more end-to-end view of the supply chain, and the need for a more in depth assessment of risk management. With optimism felt throughout the manufacturing industry,it is still important to assess risks and supply chain process efficiencies in an ever-changing world.
Click here for a more in-depth look at these trends or contact Brant Kennedy, CPA at 800.880.7800 ext. 1425, [email protected].
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Significant Changes to IRS Audits of Partnerships
The IRS will soon be following new guidelines relating to their audits of partnerships and limited liability companies (LLC's). These new rules generally affect returns filed after 2017, but it may be beneficial for existing entities to consider changing their partnership or LLC agreements now to avoid the negative consequences of the changes.
One consequence of the rules change is the creation of the term "partnership representative" that replaces the "tax matters partner." The partnership representative will be the single point of contact with the IRS and the partnership, and fully capable of binding the entity to any agreements or negotiations with the IRS. This representative should be carefully selected and specified in an entity's partnership agreement.
Click here to read the full article. For additional information, please contact John Rittichier, CPA at 800.880.7800 ext. 8484 or at [email protected].
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Revenue Recognition: Five Key Considerations for Implementation
There is a large change on the horizon related to revenue recognition from customer contracts. This complex accounting change will require time to review current contracts and assess the many recognition "triggers" under the new codification. This change in accounting could also provide companies the chance to consider new strategic operational issues. In an effort to prepare for the upcoming accounting changes that will be required to be adopted as of Jan. 1, 2019 for private companies, the following linked article provides five key considerations for companies to consider.
To view the full article, click here. For additional information, please contact Brant Kennedy, CPA at 800.880.7800 ext. 1425 or at
[email protected].
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Defining Lean Accounting - Part I
by Nick Katko
Harding Shymanski has invited me to be a regular contributor to its manufacturing newsletter on the subject of Lean Accounting. Each newsletter I will be explaining one specific aspect of Lean Accounting. These articles are revisions of blogs I post on www.theleancfo.com and www.maskell.com.
This first article deals with defining exactly what Lean Accounting is. Here we go.
Lean Accounting is applicable to any company, in any industry, that commits to a Lean strategy.
I like to define Lean Accounting this way:
* Lean Financial Accounting - applying lean practices to accounting processes.
* A Lean Management Accounting System to support any business that is Lean.
It doesn't really matter exactly what terms or phrases are used, what is important is to understand the distinctions. Let's look at these distinctions in more detail.
Lean Financial Accounting is applying lean practices in all accounting processes to improve productivity, delivery, quality & service. Eliminate waste in accounting processes. A simple example is applying lean practices to eliminate waste in the month-end close process to have a shorter close cycle.
Any accounting department can begin applying lean practices to its accounting processes, even if your company has not yet committed to beginning its lean journey.
Applying lean practices to accounting processes in no way compromises meeting financial reporting requirements, maintaining compliance with tax laws or other regulations or the internal controls to maintain compliance. In fact, from a lean point of view, maintaining compliance is the quality standard of accounting processes.
Next month, we will further discuss Lean Management Accounting Systems. For additional information, please contact Nick Katko at 859.268.3218 or at [email protected].
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ABOUT OUR MANUFACTURING & WHOLESALE DISTRIBUTION INDUSTRY TEAM
From increased competition and continuous quality improvement demands to rising employee benefit costs and declining margins, manufacturers and wholesale distributors are facing greater challenges than ever before. In addition to the services you would expect from an accounting firm, we have a dedicated team ready to assist you with the unique challenges and issues facing your industry.
A number of our staff members belong to The Association for Operations Management (APICS) with some having achieved the CPIM and CIRM certifications. We understand your key issues and possess the drive and determination to help you manage your company on a proactive basis. This commitment positions us at the cutting edge of the industry and enables us to spot trends and deal quickly with the issues your company may be facing. |
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SEE WHAT OUR CLIENTS ARE SAYING...
"We engaged with HSC in 2007 as we began repositioning our market focus. Since then, our business has increased tenfold. We have expanded into 15 different states and now operate from six locations. HSC's counsel on tax, accounting and finance has proven to be timely and insightful playing a vital role in helping us achieve these results. Harding Shymanski will be a valued partner for the long term."
- Bruce & Katrina Stallings, Owners, P&I Supply
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Disclaimer: The information contained in this email is for general guidance on matters of interest only. The publication does not, and is not intended to provide legal, tax or accounting advice.
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Harding, Shymanski & Company, P.S.C.
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