Manufacturing Industry

Being an Ohio-based accounting firm, we know and have proudly served the manufacturing industry since our firm’s inception in 1993. Our team of professionals knows accounting and tax complexities that are unique to the manufacturing industry and knows how to help navigate those complexities.

Our experience in the manufacturing industry includes working with clients in Tool & Die, Metal Spinning, Pattern Shops, Mold Making, Assembly, Metal Plating, Food Processing, Die Casting, Injection Molding, Printed Labels, Grinding, Metal Fabrication, Laser Cutting, and more.

Accounting for the different processes and inventories of a manufacturing business is difficult.  Much of this difficulty lies in the accounting for raw materials, work in process, and finished goods.  

Numerous tax-saving opportunities exist in the form of tax deductions and credits. Since manufacturing companies are so capital-intensive, these deductions and credits are often significant.  

Some of the tax credits and grants more common to the manufacturing environment are:

  1. Research and Development (R&D) Tax Credits: All too often overlooked.

  2. Payroll Tax Credits & Deferrals: Many came into being as a result of the COVID pandemic. These credits often result in significant tax refunds or credits.

  3. Payroll Protection Program (PPP) loans: The deadline for obtaining these loans has expired., but many manufacturing concerns have not yet applied for loan forgiveness.  

  4. Work Opportunity Tax Credit: Your payroll service provider or an independent contractor may assist you in capturing the required information for making these calculations. 

  5. Empowerment Zone Incentives: Manufacturers located in designated “empowerment zones” may qualify for this tax credit. 

  6. ERTC: Employee Retention Tax Credit  

The CARES Act and previous tax reforms have altered many deductions previously available. Below are some of the most common deductions based on the current tax environment:

  1. Qualified Business Income Deduction (QBID): One of the best deductions available for profitable companies.

  2. Accelerated Depreciation: Internal Revenue Sections 168 and 179 often allow a full write-off of the equipment cost in the year the asset is placed in service.