Breon & Associates

As the year draws to a close, it’s generally manufacturers’ last chance to implement strategies to reduce their 2024 tax liability. A tried-and-true method is to take advantage of the Sec. 179 expensing election. The maximum 2024 deduction is $1.22 million, and it begins to phase out when qualifying purchases exceed $3.05 million. You may be able to cut your 2024 tax bill by purchasing new and used eligible assets and placing them in service before year end. But the Sec. 179 expensing election is limited by your income from business activity. You can carry forward the excess or deduct the eligible portion as bonus depreciation, which isn’t subject to any dollar limits or phaseouts. #Consulting #Risk #BusinessResiliancy #Manufacturing #Construction #Business #LitigationSupport #BusinessConsulting #ExpertWitness #InternalAudit #TrialConsultant #DataAnalytics #BVal

In organizations where executives commit fraud, the results are costly. According to the Association of Certified Fraud Examiners, executives cause a median fraud loss of almost $500,000 vs. $60,000 for ordinary workers. You need to protect your business against executive fraud as aggressively, if not more so, as other forms of fraud. This means explicitly stating when internal control overrides are allowed and how they must be conducted. Also, mandate antifraud training for all employees, empower your audit team with full access to records and pursue legal remedies when you have good evidence of executive crimes. #Consulting #Risk #BusinessResiliancy #Manufacturing #Construction #Business #LitigationSupport #BusinessConsulting #ExpertWitness #InternalAudit #TrialConsultant #DataAnalytics #BVal

Gone are the days when locking the doors was enough to prevent intruders from robbing your business’s office or factory. Today, companies face both physical and cyber risks, and it’s critical to understand how they’re intertwined. For example, a thief could steal a laptop containing your customer database from an employee’s car and use it to conduct corporate espionage or identity theft. To protect against such incidents, identify your most valuable assets, train employees, install mobile device management software, maintain adequate insurance and engage a security professional to assess your risk. #Consulting #Risk #BusinessResiliancy #Manufacturing #Construction #Business #LitigationSupport #BusinessConsulting #ExpertWitness #InternalAudit #TrialConsultant #DataAnalytics #BVal

Construction business owners have various front-office technology tools to consider. One example is customer relationship management (CRM) software. This type of application is designed to help businesses track and interact with customers. For contractors, however, it also enables you to organize contact information and interaction details related to government agencies, architects, engineers, subcontractors, suppliers, lenders, professional advisors and others. By storing this data in a centralized database, you can improve internal communication, better coordinate projects and learn which job types are most profitable. #Consulting #Risk #BusinessResiliancy #Manufacturing #Construction #Business #LitigationSupport #BusinessConsulting #ExpertWitness #InternalAudit #TrialConsultant #DataAnalytics #BVal

What drives value for manufacturing companies? Valuation pros consider seven key factors: 1) financial performance, 2) the condition and production capacity of hard assets, 3) acquired and internally developed intangible assets, 4) investments in technological advancements, 5) market position, 6) supply chain and inventory management, and 7) compliance with relevant laws and regulations. Then they apply valuation techniques, such as the asset, market and income approaches. What’s appropriate depends on the nature and strength of a manufacturer’s operations, the valuation’s purpose and various other considerations. Contact us to determine what’s right for your situation. #Consulting #Risk #BusinessResiliancy #Manufacturing #Construction #Business #LitigationSupport #BusinessConsulting #ExpertWitness #InternalAudit #TrialConsultant #DataAnalytics #BVal

Artificial intelligence (AI) offers unprecedented opportunities to improve operational efficiency and drive better decision making for your manufacturing company. However, keep in mind that for all its benefits, adopting AI is no small matter for manufacturers. The bottom-line effects can be dramatic, but a significant investment is required. That’s just one reason why it’s wise to start small. Rather than implementing AI tools across your manufacturing company, consider launching a pilot program. For example, introduce AI to only one or two production lines. You can test and adjust as necessary before you roll it out more extensively, but still on a gradual basis. #Consulting #Risk #BusinessResiliancy #Manufacturing #Construction #Business #LitigationSupport #BusinessConsulting #ExpertWitness #InternalAudit #TrialConsultant #DataAnalytics #BVal

Although most businesses have a disaster plan to guide them in the event of a fire, natural disaster or other emergency, they may not have a fraud contingency plan. Ideally, such a plan provides procedures for investigating and limiting financial losses. Consider fraud schemes that are the most likely to occur and that could result in the greatest damage. Then, assign roles to employees and define the goals of any investigation. Make sure you update your plan regularly, particularly if you experience fraud. And ensure you have strong internal controls that will help prevent fraud in the first place. #Consulting #Risk #BusinessResiliancy #Manufacturing #Construction #Business #LitigationSupport #BusinessConsulting #ExpertWitness #InternalAudit #TrialConsultant #DataAnalytics #BVal

In June 2024, the IRS released final regulations addressing the prevailing wage and apprenticeship requirements for increased clean energy tax deduction or credit amounts. These tax breaks were made available under the Inflation Reduction Act. Satisfying the requirements can quintuple the total tax benefit available to taxpayers (project owners) involved in the construction, alteration or repair of certain clean energy facilities or properties, projects, or equipment. But for taxpayers to claim the enhanced tax treatment, both general contractors and subcontractors on eligible jobs must follow the requirements. If your construction business may bid on such projects. #Consulting #Risk #BusinessResiliancy #Manufacturing #Construction #Business #LitigationSupport #BusinessConsulting #ExpertWitness #InternalAudit #TrialConsultant #DataAnalytics #BVal

When valuing a business interest for federal estate tax purposes, should the value include or exclude corporate-owned life insurance (COLI) proceeds that fund a redemption agreement? A recent U.S. Supreme Court ruling resolves a circuit split on this business valuation issue. The Court held that COLI designed to fund the redemption of a deceased shareholder’s stock under a buy-sell agreement should be considered a corporate asset, without an offsetting liability for the company’s redemption obligation. When valuing a business, case facts matter. #Consulting #Risk #BusinessResiliancy #Manufacturing #Construction #Business #LitigationSupport #BusinessConsulting #ExpertWitness #InternalAudit #TrialConsultant #DataAnalytics #BVal

When operating across state lines, it’s critical for manufacturers to understand their multistate tax liability. To determine state tax liability, state governments consider whether a company has “nexus” in their respective states, meaning that its presence in them is significant enough to subject it to taxes. Manufacturers should evaluate their activities in each state to determine where they’re subject to state (and local) taxes. A nexus study can help identify the taxes to which your manufacturing company’s activities may expose you and help assess the effect of state and local taxes on your bottom line. #Consulting #Risk #BusinessResiliancy #Manufacturing #Construction #Business #LitigationSupport #BusinessConsulting #ExpertWitness #InternalAudit #TrialConsultant #DataAnalytics #BVal