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Quick Links
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Thought Leadership:
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Pricing Strategies
Are your products priced right to maximize profits?
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A solid pricing strategy can do more for your business than cover costs and generate a profit. It can position you in the marketplace and affect your long-term success.
In the manufacturing industry, a key financal calculation is gross margin: What is left after cost of production is subtracted from revenues. Gross margin must cover operating overhead and desired profit. However, actual gross margin dollars fluctuate according to volume as well as price.
For example, assume each unit sold contributes $1 after manufacturing costs are subtracted. If your remaining costs and desired profit equal $100,000, you must sell 100,000 units or profits erode and you start to lose money.
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Part-time workers can fill gaps during peak periods | |
The U.S. Bureau of Labor Statistics defines working part-time as working less than 35 hours per week. By that definition, more than 25 million Americans are part-time employees.
Part-time employees may be parents wanting to be at home with young children, retirees supplementing their income, students going to school, workers holding a second job to earn money, and previously unemployed people who figure something is better than nothing.
You might want to take advantage of this pool of labor to help you meet staffing needs during peak periods for your business, as well as times when many of your staff want time off - for example, Thanksgiving through New Year's and summer vacations.
To learn more about the advantages and disadvantages of hiring part-time employees, click here. |
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Vehicles and Equipment: the pros and cons of buying or leasing | |
When you're looking to add or replace vehicles and equipment, the decision to lease or buy is more than a financial one. It can affect your operations, taxes and future company decisions. If you want to build your asset base, plan long-term ownership, and are not in an overly leveraged debt position, purchasing may be the right choice for you.
Purchasing is pretty straightforward. You provide a down payment, get a loan and make payments. The asset is capitalized - listed on your balance sheet - as is your debt. The interest portion of your payments and depreciation are allowable deductions from revenue. You are responsible for maintenance and disposal of the asset when the useful life ends.
In contrast, leasing can be complex with many options regarding structure, terms and add-on services. Leasing is poised to become even more complicated because the Financial Accounting Standards Board (FASB) is reviewing a key provision of operating leases: off-balance sheet accounting.
At this time, leases can be divided into capital and operating leases. Capital leases are treated like purchases in financial reporting. You list the asset and the liability, take depreciation and, in effect, are the owner.
To find out more about the pros and cons of buying vs. leasing commercial vehicles and equipment, click here. |
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Shareholder Manager
Click on above niche leader's name to view profile or contact.
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About Wall, Einhorn & Chernitzer, P.C.
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Wall, Einhorn & Chernitzer, P.C. (WEC) offers a local touch with regional scope and national resources. Serving clients since 1989, we are today the largest public accounting firm headquartered in Norfolk, Virginia and the second largest in the Hampton Roads region. Our team is comprised of professionals who are committed to a common vision as a high performance firm and a common goal to provide our clients with exceptional service.
WEC is an independently owned and operated member firm of CPAmerica International, one of the largest associations of CPA firms in the United States. Through our affiliation, we have instant access to the expertise and resources of more than 2,500 professionals across America. WEC clients benefit from the resources, experience and professional knowledge base of a national firm while still receiving the personalized service and attention that only a locally-owned, independent accounting firm can offer.
In addition to our Assurance and Tax services, WEC provides a range of Business Advisory services and solutions strategically customized to fit our clients' unique and individual needs. These services include Estate Planning, Entrepreneurial Services, Restructuring and Turnaround, Wealth Management, Business Valuation, Litigation and Dispute Consulting, Virtual Office Services, and Exit Planning.
The expertise of our CPAs and Advisors spans a range of business sectors. Our specialized industry niches include: Real Estate, Retail, Franchise, Construction, Government Contracting, Manufacturing & Wholesale Distribution, Technology and Not-for-Profit.
We are honored that WEC has been named as one of the "Best Places to Work in Virginia" in 2012 and 2013 by Virginia Business magazine, one of the "Top 25 Best Places to Work in Hampton Roads" by Inside Business, named to their "Hall of Fame" in 2010, and listed among the "Best Firms to Work For" by Accounting Today.
For more information, please visit us at www.wec-cpa.com.
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