MANUFACTURING | DISTRIBUTION

Manufacturing

Operating a successful manufacturing business means conquering today’s most challenging conditions. Due to globalization, downward pricing pressures, rapidly changing technology, and stringent regulatory guidelines, sustaining operations and remaining profitable in the manufacturing sector is becoming increasingly difficult for companies. Manufacturing in the U.S. represents approximately 11% of the U.S. GDP and the U.S. is the world’s largest manufacturing economy. You need a CPA firm that comprehends not only the financial aspects of manufacturing, but your operations, supply chain management, cost systems, and financing options. At Rossi, we understand your industry, its key metrics, and challenges, while investing the time to fully learn the nuances of your business.

Manufacturing operations are both capital intensive and labor intensive, in addition to involving research and development activities. As such, tax planning is critical to maximizing the most favorable tax strategies available to the manufacturing enterprise. Tax planning for your manufacturing company investing in many facets from the form of your entity (LLC, ‘S’ corporation, ‘C’ corporation, partnership) inventory cost methods, international transfer pricing, tax credits and depreciation elections. Whether the implementation of LIFO inventory accounting method (used by a significant amount of small and medium-sized manufacturers), maximizing your election under Sec 179 to expense equipment purchases or bonus depreciation, taking advantage of the research and development tax credit, new jobs credit analysis or the pricing of product between two taxing jurisdictions, transfer pricing, there are numerous tax elections and analysis that must be performed to ensure that you are taking advantage of all the tax benefits available to you.

Distribution

Distributors face continuous pressure to supply product for just-in-time manufacturing, maintain higher inventory levels to support retailers, be more efficient and competitively price their products.

Our team of professionals has the experience and background to advise companies on how to streamline their operations, reduce operating costs, and increase efficiencies. We can assist with inventory cost systems, cost efficiencies, break-even analysis, product line profitability, capital expenditure models, forecasting and projections, cash flow and compensation strategies among others.

Our tax professionals understand the tax complexities and needs of the wholesale distribution industry from inventory cost capitalization, foreign transfer pricing, LIFO inventory adoption and accounting, warranty reserves to multi-state filing requirements.