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Work-in-process: What it means for your manufacturing company’s finances and performance

Work in process (WIP) is a common term in manufacturing, often tossed around loosely. WIP is sometimes used interchangeably with "work in progress." However, WIP has a specific meaning in an accounting context. While work in progress focuses on milestones, WIP aligns more with production efficiency and inventory management. It's generally better to reserve the term "work in progress" for longer-term or... Read More

Is earned wage access a viable option for construction companies?

Earned wage access (EWA) is catching on across various industries. Many different types of employers are using it to help attract and retain employees, but is it a viable option for construction companies? The need is certainly there. The construction industry continues to struggle with a labor shortage, and a perk like EWA may help attract quality job candidates and motivate current employees to stick... Read More

Comprehensive Employee Reviews for Manufacturing and Distribution Companies

Conducting effective performance reviews can be challenging. They require significant management effort, and there's potential for conflict if an employee disagrees with the assessment. However, when done right, the process can be a rewarding experience that boosts a manufacturing company's productivity and strengthens employee retention. Beneficial to you and your employees A review can foster... Read More

The Contractor's Role in Life-Cycle Cost Analysis

When project owners invest in construction jobs, they invariably look for long-term value. Whether road, residence or commercial real estate, the final deliverable needs to stand the test of time and provide a return on investment. To help ensure positive outcomes, many owners now engage in life-cycle cost analysis (LCCA). Construction businesses, typically general contractors, play an important role in... Read More

Understanding Spousal Lifetime Access Trusts (SLATs)

In a previous article we discussed the sunset of the lifetime exclusion. As a recap, unless a change in the current law takes place, after 2025 the lifetime exclusion for the estate and gift tax exemption will revert from $13.61 million to $5.49 million (adjusted for inflation). Spousal Lifetime Access Trusts (SLATs) are rising in popularity as people take advantage of the current exemption by creating and... Read More

Is Your Manufacturing Company's Budget Realistic?

You've likely already begun your company's 2025 budget planning. A comprehensive, realistic budget allows you to identify potential cash shortages, production capacity constraints and other threats. However, be aware of certain pitfalls when creating your budget. Below are just a few. Basing next year's budget on the past year's results Too often, companies create budgets by applying an... Read More

Exit Strategy: ESOPs for Construction Companies

Contractors often struggle to find suitable buyers for their companies when they're ready to retire or otherwise move on. That may be why many construction businesses implement employee stock ownership plans (ESOPs). These plans offer a gradual exit strategy and other benefits that can pay off for owners and employees. Of course, they're not without potential drawbacks. Nuts and bolts An ESOP is a... Read More

The IRS issues final regs for the advanced manufacturing production credit

The IRS has published final regulations for the Section 45X advanced manufacturing production credit. The final regs update several significant areas from the proposed regs released in late 2023. The credit in a nutshell The Sec. 45X credit was created by the Inflation Reduction Act (IRA). It is available to manufacturers that domestically produce and sell certain clean energy equipment in the United... Read More

Prepare for the Tax Fiscal Cliff: What Construction Contractors Need to Know

As the 2025 tax fiscal cliff approaches, construction companies face critical changes that could significantly impact their bottom line. Depending on any changes made by the new administration, the expiration of key provisions from the Tax Cuts and Jobs Act (TCJA) will result in higher tax rates, reduced deductions, and more complex filings. HLB Gross Collins understands the unique challenges faced by... Read More