CPAs need to move away from their desks and participate in the physical and social sides of accounting to get a grip on important issue of inventory control, says Sherri Waxman, manager of inventory, operations/administration and safety for New Wave Plastics of Cleveland.
Waxman was among the speakers at last Friday’s Manufacturing and Construction Issues Conference held in Cleveland. This new conference was geared toward CPAs and accounting professionals in manufacturing and construction, as well as practitioners who deal with contractor clients.
“Inventory control is essential, because cash flow is tight for all companies,” Waxman said. “Really it’s about getting the organization involved. It’s not just an issue for certain people in the organization. You need to get the entire team on board to participate.”
That means getting everyone out of the office and onsite to participate in regularly scheduled physical inventories.
“The size of the company can make a huge difference” in how difficult it can be to focus on inventory control, Waxman said.
She said CPAs need to learn and know their business thoroughly so they can help management identify key metrics and pricing information. At the same time, a “bottom-up” philosophy involving all levels of the organization is necessary for proper cost accounting.
“Everyone is in a hurry to get the job done, but you have to have a system in place where you know where to put things and people put them there,” Waxman said.
Also on Friday, Craig Miller, CPA, CGFM discussed the economic and tax benefits of construction tax planning and cost segregation.
Miller, vice president and client manager at Duffy+Duffy Cost Segregation Services and Duffy+Duffy Energy Tax Savings of Westlake, discussed linking technology, operations, finance, value engineering and life cycle analysis to achieve energy efficiency and cost savings, as well as meet the growing demand for green space. By applying case law and IRS guidance, he also identified accelerated depreciation opportunities with existing buildings, building renovations and new construction.
Friday’s conference also offered in-depth discussions of tax credits, contractor classification, how to challenge real estate tax valuations and many other industry-related issues.
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