Manufacturing & Distribution

CPA services for manufacturing and distribution

Capitalize on opportunities

We share your passion for innovation.

Manufacturing and distribution companies face many challenges in today’s environment. Changing technologies, pricing pressures, tax issues and talent shortages are common concerns. We help our clients cope with these issues and capitalize on emerging opportunities.

Our services

Boyum Barenscheer’s team of seasoned professionals work collaboratively with our manufacturing and distribution clients to address their key needs including:

 

Performance and Profitability

  • Benchmarking and forecasting
  • Development of management scorecards
  • Constraints management
  • Costing and overhead analysis

Strategy and Management

Tax Consulting

Compliance and Assurance

Accounting and Outsourced Services

Trade associations

FAQs

 
What are the best ways to detour or prevent fraud in my manufacturing or distribution business?

The first step to prevent fraud in your business is to evaluate the five components of internal controls: control environment, risk assessment, control activities, information and communication and monitoring activities. We at Boyum Barenscheer can assist you with implementing fraud prevention best practices. Our internal control services are built specifically to your business to analyze the culture and structure, evaluate current processes and procedures within your business and implement ongoing monitoring procedures. We aim to eliminate the opportunity to commit fraud within your company by helping owners and management access opportunities to strengthen internal control process and procedures. The overall objective is to help the company and its employees reduce risk of errors or fraud and safeguard company resources and assets.

 
How can I improve the way my management team works together?

Three things can make a huge difference on a team working together:
1) Leadership training and emphasis
2) Strong business operating system
3) Openness and vulnerability

Leaders are usually made, not born.  Providing leadership opportunities, proper investment in training, and proactive feedback can have a significant impact on your business.  A business operating system standardizes procedures – this is foundational to getting things done.  Many companies develop their own processes, but increasingly, companies are adopting EOS (Entrepreneurial Operating Systems) or similar systems to help with the day to day decisions and processes they need to become successful.  Lastly, being open with each other and even being vulnerable can help bring teams together and improve performance.  We all have strengths and weaknesses.  Those who admit to needing help and are willing to discuss not only what excites them, but also what scares them, can make a significant impact on the whole team.

 
How is my cost and overhead allocated to my inventory?

In general, inventory under the accounting and tax rules includes materials, direct labor and labor burden (labor burden: payroll taxes, benefits, retirement, and insurance) an allocation manufacturing overhead expenses. Manufacturing overhead includes: depreciation, utilities, indirect labor, cost of quality, rent, etc, it doesn’t include general and administrative and selling expenses. The tax rules are slightly different on how manufacturing overhead is handled. Often many of the manufacturing overhead items are largely fixed or semi-variable in nature and from a management accounting and pricing of product we like it when companies can determine the direct variable cost of inventory from the indirect fixed and semi-variable costs. This can be a confusing topic because of the various terms used for factory overhead.

 
How do I maximize R&D credits for my manufacturing business or distribution company?

You may be surprised to hear that some and often many of your activities can qualify for a research and development credit for your business. For example, Tooling and equipment design and development, new products, prototyping, maximizing the manufacturing process and various design and engineering processes are all potential qualifying activities along with a long list of other potential activities. If you haven’t considered this incentive, we can help figure out which part of your business activities qualifies. This remains one of the top tax incentives for manufacturers and increasingly value add distributors may qualify also.

Contact Randy for more info

Randy Feld, CPA

Randy joined Boyum Barenscheer in 1991. He works with clients on maximizing their business value, valuation, succession, forecasting, business planning and auditing. His passion is working with business owners and management teams to leverage the use of their financial statements to help them gain insights into their business to ultimately become more profitable, reduce income taxes, create more value inside and outside their business and to help plan for the future…