Manufacturing Companies

Manufacturers face a number of financial and accounting challenges that are unique to the manufacturing industry. Here at O’Brien and Panchuk, we have helped manufacturers manage these challenges effectively.

For most manufacturers, success is all about managing processes. Consistency and quality control are essential for maintaining high levels of efficiency and profitability. Manufacturers need to pay close attention to product costs and understand fixed vs. variable cost drivers since these directly affect gross margins.

Manufacturers also should take full advantage of various tax credits and deductions available to them. These include  research and development tax credit, federal and state new employment tax credits, and Enterprise Zone tax credits, which can reduce the effective state income tax rate to zero.

Manufacturers also must deal with sales tax compliance and audits, while those with multi-state operations need to understand the concept of nexus as it relates to state tax payment obligations. Our experience in these areas, along with proper systems and record keeping, will help manufacturers meet these challenges while reducing the stress and anxiety typically associated with tax audits.

We can also provide a review of manufacturing company processes to ensure that operations are running as efficiently as possible. We will obtain industry benchmarks based on NAICS or SIC codes and compare a company’s performance to these metrics. Periodic evaluations can then be performed based on these best-practice performance metrics.