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What are the manufacturing trends of 2015?
R&D credit... and other extenders that help manufacturers
Patent infringement continues to plague inventors
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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 manufacturing trends of 2015, R&D credits and patent infringement.
 
What are the manufacturing
trends of 2015?
Trends in manufacturing for 2015 can be summarized in two words: connection and communication.

Companies are leveraging technology to enhance production and customer service, and the on-shoring trend (also called next-shoring) appears to be gaining momentum. Many aspects of the manufacturing process have become automated, and the next wave is poised to affect financial management.

Three fourths of finance executives responding to a recent study believe that "SMAC" will change the structure and operations of finance departments, according to a report by technology company, Oracle. SMAC is an acronym for a cluster of new technologies: social, mobile, analytics and cloud.

The rising use of social media platforms and mobile devices in conducting business has provided an unprecedented opportunity to almost instantly gather data from a variety of sources. The question is how to use that data to optimize operations and profits. 

  
Contact WEC today to speak with one of our Manufacturing & Wholesale Distribution experts and learn more on the latest trends in manufacturing.
R&D credit... and other extenders that help manufacturers
Thomas Edison made 1,000 attempts before he successfully created the light bulb. That seemingly small item transformed our standard of living and led to tens of thousands of other new products. Perhaps the process would have been faster if Edison's efforts had been supported. 

The legendary inventor began in poverty and created his first innovations after working 12-hour days. With a desire to foster potential breakthrough inventions through research and development, the U.S. government instituted the R&D tax credit in 1981. Manufacturing groups are lobbying for permanent enactment rather than yearly extensions.

Since it is a credit, this provision allows a portion of qualified costs to be deducted from federal and state taxes owed. For those with partnerships or LLCs, this credit flows through to the personal return. Form 6765 is used to claim and calculate the credit.

To find out more information on extenders that help manufacturers , click here.

While this article does not address state level credits, there are similar opportunities for manufacturers to reduce state income tax liabilities by claiming an R&D tax credit.  Contact WEC today to speak with one of our tax experts and learn more about these opportunities.
Patent infringement continues to plague inventors
The American patent system is the  underpinning of our economy. Since the early 1800's, the ability to create, register and benefit from an original idea has produced innumerable businesses, jobs and wealth. In 2014 alone, more than 8.6 million patents were filed, with each guaranteeing exclusive use for 20 years.

Why then is patent reform such a hot-button topic? The answer lies in another important aspect of patent law - the ability to protect one's intellectual property from infringement. Patents can be shared with permission by the holder, usually through licensing agreements that allow the licensee to manufacture products using proprietary technologies and designs. For example, an inventor may not plan to manufacture an item or material but will make it available to companies that can use it in their products. Considered tangible property, patents can also be mortgaged, sold or passed to heirs.
 
To find out more on the effect of patent infringement on inventors, 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, 2013, 2014 and 2015 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", and listed among the "Best Firms to Work For" by Accounting Today.

 

For more information, please visit us at www.wec-cpa.com.