Top 5 Tax Planning Tips for Manufacturers in 2024
The end of the Tax Cuts and Jobs Act (TCJA) and the introduction of the Inflation Reduction Act…
Read Full ArticleSpend more time creating and leave the inventory and profitability analysis to us.
Closely held manufacturers and distributors are the foundation of the American economy. Anders guides manufacturing and distribution clients through challenges from technological investment to regulatory audits. We’ll help you develop long-term strategies to improve efficiencies, reduce costs and enhance profit margins. We’ll also make sure that you’re prepared to take advantage of tax incentives and for merger, acquisition and expansion opportunities.
Ensuring you’re not overpaying in local, state, federal and international taxes takes a proactive approach. Our advisors work with the manufacturers and distributors to analyze applicable credits and incentives to create a custom tax planning strategy.
Our advisors develop insights through financial statement audits, employee benefit plan audits, operational assessments and other processes to help manufacturers and distributors strengthen internal controls and identify areas to improve operations.
We recognize that a one-size-fits-all technology strategy doesn’t work for every business. At Anders, our technology advisors can work directly with your IT team to supplement expertise and save overhead costs, or act as your entire outsourced IT department and helpdesk. We can fill in the gaps your company has in network and server monitoring and maintenance, Microsoft licensing, CIO-level strategy, helpdesk outsourcing and other IT advisory services as needed.
Understanding the value of your business is vital when it comes time to sell or add partners. Our forensic and litigation advisors work with the manufacturers and distributors on valuations and various litigation, fraud and forensics situations as needed.
From planning for strategic growth or transitioning, to finding a valuable banking relationship, our team works with manufacturers and distributors on value-added services to move their businesses forward.
Anders works with a range of leaders and professionals in the manufacturing and distribution industry, including:
We are proud to be members of the following manufacturing and distribution-related organizations:
Gain insight into the manufacturing and distribution industry with these resources from Anders:
Our manufacturing client had utilized the Research & Experimentation (R&D) tax credit in the past, but our team questioned if they were getting the maximum benefit from their current method of capturing research wages and related costs. By completing a full R&D study, we identified additional wages and supplies that could be included to bolster the client’s R&D credit opportunities for each year of the study. By amending the prior three years of tax returns, our team discovered over $350,000 in additional savings.
A St. Peter’s based manufacturer had a facility expansion that called for the creation of 125 additional jobs, new equipment needs and an ongoing training initiative. We negotiated with the Missouri Department of Economic Development to procure nearly $2,600,000 in benefits from the Missouri Works program, $680,000 in property tax abatement and $100,000 in training grants.
An R&D Tax Credit study was performed for a client specializing in rapid turnaround and high volume engineering and manufacturing of custom tools and dies. The study identified $1,150,000 of Qualified Research Expenses (QREs) for the tax year 2015, resulting in a federal benefit of approximately $60,000 in tax credits.
Due to our familiarity with the Missouri Works program and the Chapter 100 Bond process, we assisted a Missouri-based manufacturer contemplating systematic plant expansion, equipment purchases and job additions in the procurement of state, city and local tax incentives in excess of $3.5 million.
We assisted a client with setting up an IC-DISC (C Corporation) because of their substantial sales to foreign customers. The manufacturing company (S Corporation) calculates a commission based on foreign sales and pays it to the IC-DISC. This provided the S Corporation a deduction from ordinary income. The IC-DISC turned around and paid a dividend to the S Corporation for the same amount, and the IC-Disc pays no tax. The S Corporation reports dividend income taxed at 23.8% versus ordinary income taxed at 39.6%. For this client, that was a tax savings $32,000 in the first year.
Learn more about the latest manufacturing and distribution trends from leading Anders professionals.
October 17, 2023
Brent E. McClure
The end of the Tax Cuts and Jobs Act (TCJA) and the introduction of the Inflation Reduction Act…
Read Full ArticleNovember 29, 2022
Anders
Due to our familiarity with the Missouri Works program and the Chapter 100 Bond process, we assisted a…
Read Full ArticleAugust 31, 2022
Anders
After examining the fixed asset schedule of a manufacturing client, we were able to implement the new tangible…
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