Manufacturing Accounting to Build a Better Business
Helping clients maximize profitability.
Manufacturing companies are a key component of our national economy. Porte Brown takes pride in turning the pressures of today, into the profits of tomorrow for our manufacturing clients. Our Manufacturing and Distribution Accounting Practice Group understands the need to develop procedures, build a functional organization and provide solutions to reduce costs, increase efficiency and maximize profitability for our clients. We strive to take our manufacturing clients to the next level by leveraging insights we have gained from years of working with companies in the manufacturing and distribution industries. As a leading manufacturing CPA firm, we firmly believe that achieving success in the manufacturing sector hinges on a comprehensive understanding of the unique challenges a manufacturing business may encounter. It entails adopting a data-based methodology for effectively managing payroll, maintaining a solid grip on finance, and ensuring full compliance with regulatory requirements.
How Manufacturing Accountants Can Help
Accountants throughout the manufacturing sector do so much more than look at the numbers. Porte Brown focuses on the bigger picture related to your accounting needs so that your business runs successfully. Our experience in the manufacturing industry allows us to share knowledge, best practices, and time-tested tax planning methods that provide a range of benefits for manufacturing businesses.
Choose the manufacturing company accounting service you can rely on to save money and give you peace of mind. A Porte Brown manufacturing CPA can provide a wide range of services designed for your industry.
Our assurance services ensure your financial statements are in order, so you can obtain funding for your company to pay for real estate, new machinery, and additional hires. Guarantee solid financial reporting with the help of CPA manufacturing from a team that’s advocating for you. We offer services ranging from one-page compilations to complete audits.
With Porte Brown, you can also trust that no mistakes have been made upon soliciting third-party investments, giving you the peace of mind you need to proceed.
We also provide client cash flow forecasting for the manufacturing industry. Cash flow forecasting for accounting manufacturing ensures you can plan around raw material purchases and payment delays. Better predictive cash flow reports provide you with the tools to plan for the future. As an accounting manufacturing company, we offer tax services that ensure you’ll always meet the standards for tax compliance and take advantage of the opportunities for growth.
Your numbers also need to consider the real problem of tax. Accounting in manufacturing can be complex, with endless regulations, tax codes, and more at the local, state, and national levels. Porte Brown accounting for manufacturers offers valuable advisory services to make sure you mitigate your taxes through creative tax strategies.
Dig deeper into the financial nuts and bolts of your organization with manufacturing accountants. Understanding the impact of your expenses via cost analysis is essential to getting the most from your financial resources. Our accountants can go through your direct and indirect costs to determine where savings can be made to improve cash flow and fund the expansion of your operations.
Porte Brown manufacturing accountants can also advise you on appropriate succession planning for your business estate, so you are ready for anything. Planning for the worst is crucial to ensuring smooth business operations and the necessary movements of members of your organization in the event of an untimely change in leadership.
Leave no stone unturned with regards to how you run your business and in determining whether there are areas for improvement, with the help of an experienced professional with years in the business of manufacturing and production.
To learn more about how a manufacturers’ accountant can support your business, contact Porte Brown now.
Proud to serve:
- Automotive Fabrication & Supply
- Metal Fabrication
- Plastics & Chemicals
- Industrial Machinery
- Warehousing & Storage
- Wholesale & Distribution
- Textiles
- Electronics
- Food & Beverage
Services include:
- Activity-Based Costing
- Benchmarking
- Audit & Assurance Services
- Budgeting
- Cash Flow Forecasting
- Cost Analysis
- Inventory Management
- Lean Processes
- Resource Allocation
- Value Stream & Process Flow Mapping
- Valuation & Transition Planning
- 1031 Exchanges
- Multi-State Taxation Issues
- R&D Tax Credit Studies
- Sales & Use Tax Analysis
- Accounting Software Implementation
- Facility Cost Segregation Studies
- Percent Complete Consulting
- Qualified Business Income Deduction Calculations
Active industry associations:
Partner with Our Talented Manufacturing CPAs
Reduce your costs and maximize your profitability with tailored manufacturing accounting services and solutions designed for your specific operations. Porte Brown offers everything from intelligent tax strategies to production accounting for manufacturing companies.
Make even the most complex manufacturing operations simple with manufacturing accountants that integrate new technologies, stay on top of the latest regulatory developments, and deliver the personalized service that supports your company in reaching its potential.
Find out about the manufacturing CPA services our dedicated manufacturing accountants can offer companies in the manufacturing sector by getting in touch now!
Timely Topic:
CHIPS Act Manufacturing Investment Credit
The CHIPS Act provides temporary relief for the manufacturing sector in the form of a new, temporary, tax credit for producing semiconductors. The “advanced manufacturing investment credit” for investments in semiconductor manufacturing property amounts to 25% of qualified investment related to an advanced manufacturing facility, that is, a facility with the primary purpose of manufacturing semiconductors or semiconductor manufacturing equipment. Manufacturers may claim the credit for producing semiconductors or building specialized tooling equipment required in the semiconductor manufacturing process.
Any taxpayer is eligible to claim this credit if they are not a “foreign entity of concern” and have not made an “applicable transaction” during the taxable year.
How Is the Credit Calculated?
The CHIPS Act tax credit is equal to 25% of any qualified investment, e.g., the basis of any qualified property, that is part of an advanced manufacturing facility and placed in service by the taxpayer after December 31, 2022. If construction began prior to January 1, 2023, the CHIPS Act tax credit is only available to the extent of the basis of qualified property attributable to the construction, reconstruction, or erection after the CHIPS Act was enacted on August 9, 2022.
The requirements to be treated as qualified property include:
- Tangible with respect to which depreciation or amortization is allowable
- Constructed, reconstructed, or erected by the taxpayer or acquired by the taxpayer (if the original use of the property commences by the taxpayer)
- Integral to the operation of an advanced manufacturing facility whose primary purpose is manufacturing semiconductors or semiconductor manufacturing equipment. Property is integral to the manufacturing process if it is used directly in the manufacturing operation and is essential to the completeness of the manufacturing operation. A research or storage facility may be considered qualified property if it is used in connection with the manufacturing of semiconductors or semiconductor manufacturing equipment.
Which Facilities Are Eligible for the CHIPS Act Tax Credit?
The facility’s primary purpose must be to manufacture finished semiconductors or Semiconductor manufacturing equipment. This is a facts and circumstances test; however, the proposed regulations do clarify that a facility that manufactures, produces, grows, or extracts materials or Chemicals that are supplied to an advanced manufacturing facility that manufactures semiconductors, or semiconductor manufacturing equipment, does not meet the primary purpose requirement. Facts that may indicate a facility has a primary purpose of manufacturing finished semiconductors or manufacturing finished semiconductor manufacturing equipment include:
- Designs or other documents that demonstrate that the facility is designed to make finished semiconductors or finished products consisting of specialized equipment that can only be used for semiconductor manufacturing
- Possession of permits or licenses needed to manufacture finished semiconductors or finished semiconductor manufacturing equipment; and
- Executed contracts to supply finished semiconductor manufacturing equipment to a finished semiconductor manufacturer in place either before or within six months after the facility is placed in service
Treasury is asking for comments on whether for purposes of the CHIPS Act tax credit, the definition of “semiconductor” should include semiconductive substances on which an electronic device or system is manufactured, e.g., polysilicon and compound semiconductor wafers.
What Is the Direct Pay Option?
Eligible taxpayers may elect to treat the CHIPS Act tax credit as a payment against their federal income tax equal to the credit amount, even if the taxpayer has zero tax liability, effectively resulting in a refundable credit.
Next step:
If you have questions about the services we offer or would like to request a proposal, please submit the form below. Someone from the Porte Brown team will be in contact with you as soon as possible. You can also call us directly at 847-956-1040.
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Get in touch today and find out how we can help you meet your objectives.
