 HARDING, SHYMANSKI & COMPANY Certified Public Accountants and Consultants
Our Goal: Your Success! April/ May 2012
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| Manufacturing and Wholesale Distributors | |
Is today's business environment presenting unique opportunities and issues for your manufacturing operation? How are you addressing the push from your customers for continuous quality improvement? Are you having difficulty finding and retaining quality employees? Add to these issues declining profit margins and strained resources due to rapid growth and you have major challenges facing you day in and day out.
At Harding, Shymanski & Company, P.S.C. we have a dedicated team ready to assist you with those unique challenges and issues facing your industry.
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McGladrey Manufacturing and Wholesale Distribution Survey Results
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This past winter, McGladrey surveyed manufacturers and wholesale distributors regarding their view of the economic climate and how it specifically relates to the manufacturing and wholesale distribution (MWD) industries. The survey looked at challenges that MWD's faced as well as what "thriving and growing" companies are doing to overcome those challenges.
Additionally, the results of the survey showed that the number of companies "thriving and growing" were comparable to the same number of companies in pre-Recession 2007. The number of executives optimistic about the U.S. economy is (at the time of the survey) 146 percent greater than during the fall of 2011.
Is this consistent with what your company is seeing? Take a few minutes to read through the survey located here, McGladrey Manufacturing and Distribution Monitor - Winter 2011/ 2012. Find out why the results of your company's operations may be different, or if similar, what additional things you could do to further improve those results. We expect additional survey opportunities to be available in the near future and encourage you to participate. Participation in the survey will provide you with a customizable dashboard that allows you to specifically compare your responses to those within your industry, geographic location, etc.
For further information, please contact Brant Kennedy, CPA, at (800) 880-7800 ext. 1425 or bkennedy@hsccpa.com.
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Tri-State Manufacturers' Alliance 2nd Quarter Event - "Creating a Lean Culture"
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Thursday, May 17, 2012
8 a.m. - 12:00 p.m.
University of Southern Indiana, Carter Hall D
Registration begins at 7:30 a.m.
Featuring
Norm Bafunno, President, Toyota Motor Manufacturing, Indiana
and
Joe Murli, President, The Murli Group
TSMA presents its third annual Lean Summit featuring experts in Lean Transformations. All levels of leadership, from Shop Floor to CEO, are invited to engage leaders with experience creating thriving manufacturing enterprises
FREE for TSMA members!
To download the event brochure click here!
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Recycling Market Development Program |
The State of Indiana has released a total of $500,000 to Indiana Department of Environmental Management's (IDEM) Recycling Market Development Program. This money will be made available through grants to aid private businesses purchase equipment specifically needed to remanufacture recyclable materials into finished products or industrial feedstocks.
Grants will range from $25,000 up to $200,000 with a required 50% match. The grant round is expected to be competitive. Deadline for submissions is June 11, 2012. Complete instructions and information regarding eligibility criteria can be found on the IDEM Forms page.
The Recycling Market Development Program is administered by IDEM and operates under the Recycling Market Development Board as established by IC 4-23-5.5. The Board will make all final funding determinations of eligible projects. Approval of funding will be announced at the August Recycling Market Development Board meeting.
For more information on the Recycling Market Development Program, contact John Ritticher at 502.882.8484. |
| It's Time to Start Compiling Data on the Value of Health Benefits | |
The requirement to include the dollar value of health benefit coverage on employees' Forms W-2 does not begin until companies issue forms for the 2012 calendar year, which will generally occur in January 2013. However, given that we are already in the midst of 2012, companies need to make sure they are gathering the necessary data now for full reporting next year.
The IRS has issued guidance on how to handle these requirements which were enacted as part of the Patient Protection and Affordable Care Act (PPACA). The full IRS notice is available here.
In general, the PPACA requires companies to report the aggregate cost of employer-sponsored health coverage on Forms W-2. These benefits are not subject to tax; this disclosure is for informational purposes only so that employees understand the cost and value of these benefits. Companies that filed 250 or fewer Forms W-2 the prior year (in this case, the 2011 tax year) do not have to comply with this requirement.
For further information, see the full article published by Business Finance.
Please contact John Rittichier, CPA, at (800) 880-7800 ext. 8484 or jrittichier@hsccpa.com for more information.
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Calculating the Financial Benefits of Lean using Lean Accounting - Part 3 of 4
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Click here for Part 1 and here for Part 2.
Part 3 - The next step in this process is looking at capacity. In the area of capacity management, a LST should focus on reallocating existing capacity and exploring alternatives for divesting of excess capacity.
Reallocating capacity:
- Cross train employees to create a more flexible workforce. A cross training program should be part of continuous improvement and progress measured by performance measurements.
- Assign available employees to continuous improvement activities when productive activities are not available. A formal company-wide continuous improvement program should be created that identifies employees with available capacity and matches them to continuous improvement activities.
- Bring outsourced activities in-house. All outsourced production activities should be analyzed to determine if the company possesses the resources to perform these activities in-house. If the resources exist, bringing outsourced activities in-house will reduce costs.
- Become a contract manufacturer. If your company possesses a particular core manufacturing process competency, explore the possibility of using that competency to produce products outside of your normal product families.
Divesting excess capacity
- Develop an employee attrition program, where full-time employees who leave the company are not replaced. A sound cross-training program makes an attrition program possible.
- Reduce or eliminate overtime.
- Freeze full-time hiring and begin a temporary workforce program. This program requires the company to create a pool of temporary workers that can be called on to meet spikes in customer demand, and don't work if not needed. Additionally, a temporary worker program identifies potential full-time employees with the specific skills & experience that could be needed if a full-time employee must be replaced, or if demand has sufficiently increased to warrant hiring full-time employees.
- Sell excess machinery & equipment.
- Reduce your facility size or rent excess space.
Each of these alternatives will require some time to analyze and/ or implement. The LST must use good project management practices to ensure that responsibility, accountability and deadlines are met.
Part 4 of Nick Katko's article will be published in our next issue.
Please contact Scott Olinger, CPA, CPIM, at (800) 880-7800 ext. 8466 or solinger@hsccpa.com for more information.
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Indiana to Tax Out-of-State Municipal Bond Interest Beginning in 2012
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On May 10th, 2011, Indiana Governor Mitch Daniels signed a bill which includes a provision to tax municipal bond interest from bonds issued from states other than Indiana. The definition of Indiana Adjusted Gross Income has been modified to add back to Indiana income the amount of interest income received on an obligation of a state or political subdivision of a state other than Indiana that is excluded from federal gross income under Section 103 of the Internal Revenue Code. It should be noted, however, that the add-back only applies to bonds acquired by the taxpayer after December 31, 2011.
Certain municipal bond interest is generally not taxable for federal income tax purposes and as the law now stands will continue to be tax free for federal purposes. Under prior Indiana law, Indiana considered all municipal bond interest (whether an out-of-state bond or not) tax free for federal purposes to be tax free on your Indiana income tax return. Many states have always taxed out-of-state bonds; now Indiana joins that list.
Please contact Mike Vogel, CPA, at (800) 880-7800 ext. 1358 or mvogel@hsccpa.com for more information.
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Harding, Shymanski & Company, P.S.C. provides accounting, tax, and consulting services to clients from offices in Evansville, Indiana, and Louisville, Kentucky.
Call us today! (800) 880-7800
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| Disclaimer |
The information contained in this email is for general guidance on matters of interest only. The publication does not, and is not intended to provide legal, tax or accounting advice.
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