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In This Issue
Four simple solutions for reducing waste
How to cut labor costs..and improve morale
Do your employees realize what they contribute?
IRS: Retail display payments deductible
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In the latest edition of the Wall, Einhorn & Chernitzer, P.C. (WEC)  Inventory Counts Manufacturing industry newsletter, you'll find information on simple solutions for reducing waste, how to cut labor costs and helping your employees realize how they contribute to your company.
Four simple solutions for
reducing waste
Those of us who operate in the manufacturing and distribution world are familiar with the "Seven Deadly Wastes" identified by Toyota's chief engineer, Taiichi Ohno, as part of the Toyota Production System.

These wastes are:
  1. Transportation
  2. Inventory
  3. Motion
  4. Waiting
  5. Over-process
  6. Over-production
  7. Defects
Manufacturers may employ lean tools, such as Kaizen Continuous Improvement, 5S, Value Stream Mapping or Six Sigma to eliminate unnecessary waste and reduce necessary waste required for their operations.

However, implementing these tools requires resources and dedication over an extended period of time. While beginning use of one of these tools may ultimately be the best answer for your company, simple solutions may be implemented immediately to jump start your waste reduction.

- Joanna G. Brumsey, Shareholder at Wall, Einhorn & Chernitzer, P.C.

Contact WEC today to speak with one of our Manufacturing & Wholesale Distribution experts and learn more on tips for reducing waste.
How to cut labor costs...and improve morale
Keeping employees happy while boosting productivity is on the minds of manufacturers these days. Many positions remain unfilled because of lack of skilled labor, according to the National Association of Manufacturers. The overall industry economic outlook is mixed, requiring companies to do more with less.

In a changing environment, manufacturers focus on their No.1 controllable cost - labor, according to consultant John Frehse, labor strategist for Core Practice, LLC. How much overtime are you paying and what is it actually costing you as opposed to adding more employees? How accurate is your forecasting and planning? How much lead time do you have to schedule the right-sized work force to meet demand? 

Many factors affect labor costs, often tied to a labor-demand mismatch, including overtime, idle time and absenteeism.
To find out more information on cutting labor costs and improving morale , click here.
Do your employees realize what they contribute?
How do your employees feel about your company? Do they understand their individual contribution to the bottom line? Are they proud of the job they do?

If not, you might want to consider ways to educate your employees on the bigger picture to help them see exactly where they fit in. The benefits to both employee engagement and your bottom line could be tremendous.

Let's say you have an employee named Joe who gets up every morning and goes to work. He stocks the shelves or loads the trucks or fills his place on the assembly line. How does Joe feel about his job? Does he consider himself an integral part of your company? Do you know? Do you want to know?

Manufacturing jobs have the lowest level of employee engagement of any field. Only one fourth of manufacturing employees are described as "engaged," meaning they "work with passion and feel a profound connection to their company," according to studies by the Gallup organization.
 To find out helping your employees realize their contributions, click here.
IRS: Retail display payments deductible
The payments that a manufacturer paid to retailers for constructing display areas for manufacturer's products are deductible when paid as advertising or marketing costs, according to a recent ruling by the IRS.

The amount the manufacturer paid to a network of retailers to maintain retail space that conforms to the manufacturer's design requirements does not have to be capitalized (recorded as a fixed asset and depreciated) and, instead, can be deducted immediately as an expense, Chief Counsel Advice (CCA) 201405014 concluded.
To find out more, click here.
Manufacturing Service Leaders
MWD leaders
                             Joanna G. Brumsey, CPA              Richard E. Groover, CPA
                                      Shareholder                                  Senior Manager
Click on above niche leader's name to view profile or contact.
About Wall, Einhorn & Chernitzer, P.C.

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 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.


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