Could Looming Supply Chain Risks Sink Your Company?
Supply chains are suddenly under threat. Following years of low inflation and stable trade relations, executive teams in boardrooms across the globe are now grappling with rising inflation, a rapidly changing trade environment and the dire threat of an all-out trade war. Already, pressure is up sharply on earnings, and many leaders fear that traditional cost-saving measures may no longer be enough to avoid a heavy hit.
3 Trends Driving Modern Manufacturing Innovation
Industry 4.0 is the integration of manufacturing automation and data exchange, to create what has been dubbed as a “smart factory.” These factories will be controlled by a virtual production line that runs systems and monitors and completes their physical processes. These systems will communicate in real time, whether that means a customer tracking the progress of his (or her) order’s production, or a company ensuring the quality of its operations. Simply put, connected software systems will run our physical manufacturing automatically.
Workforce succession in manufacturing
UI Labs earlier this year released The Digital Workforce Succession in Manufacturing, a report that “strives to capture a sense of the changing technology and business interactions, and job roles that are having an impact on our manufacturing sector. This modernization and advancement of technology effects the entire ecosystem of manufacturers (from the small to the huge), educators, government, and the workforce itself.”
Sending your kids to day camp may provide a tax break
When school lets out, kids participate in a wide variety of summer activities. If one of the activities your child is involved with is day camp, you might be eligible for a tax break! Day (not overnight) camp is a qualified expense under the child and dependent care credit, which generally is worth 20% of qualifying expenses, up to $3,000 for one qualifying child and $6,000 for two or more. Eligible costs for care must be work-related, and additional rules apply. Contact us for help determining your eligibility for this credit and other tax breaks for parents.
Ask the right questions about your IT strategy
For many businesses, technology is an evolving challenge. To refine your IT strategy, ask the right questions. For example, are you still bogged down with paper files or traditional digital spreadsheets? More-advanced software may help. Could fully integrating key systems eliminate “information silos” and a digital asset-sharing policy improve collaboration? Do you offer training to maximize your ROI? Is there a comprehensive security policy in place? Last, what do your users say about your technology? Getting answers to such queries can keep your tech tip-top.
The TCJA changes some rules for deducting pass-through business losses
The Tax Cuts and Jobs Act restricts the losses that owners of pass-through entities (including sole proprietors) can currently deduct. For tax years beginning in 2018 through 2025, an “excess business loss” can’t be deducted in the current year. This is the excess of your aggregate business deductions for the tax year over the sum of 1) your aggregate business income and gains for the tax year and 2) $250,000 ($500,000 if you’re a married joint-filer). The excess business loss is carried over to the next tax year. Additional rules apply. Contact us for details.
Be aware of the tax consequences before selling your home
In many parts of the country, summer is peak season for selling a home. If you’re planning to put your home on the market soon, don’t neglect to consider the tax consequences. The TCJA preserves the home sale gain exclusion, so if you’re selling your principal residence, you can exclude up to $250,000 ($500,000 for joint filers) of gain, as long as you meet certain tests. A loss generally won’t be deductible, but if part of your home is rented out or used exclusively for your business, the loss attributable to that portion might be. Contact us with any questions.
4 ways to encourage innovation in customer service
Business innovation usually focuses on coming up with a revolutionary product or service. But it can apply to customer service, too. How? First, don’t fear failure: If a bold initiative fails, heed the lessons learned. Also, link compensation to employees’ contributions. Create a formal program offering cash rewards or other gifts to innovative thinkers. When someone does come up with an actionable idea, praise that individual company wide. Last, and perhaps most simply, just pretend you’re a customer to get a firsthand perspective on what you could do better.
Can you deduct business travel when it’s combined with a vacation?
This summer are you going on a business trip in the U.S. and tacking on some vacation days? Are you a business owner or self-employed? You may be able to deduct some of your expenses. Transportation costs to and from the business activity location may be 100% deductible if the primary reason for the trip is business. Out-of-pocket expenses for business days are generally fully deductible. Examples include lodging, meals (subject to the 50% disallowance rule), seminar and convention fees, and cab fare. Additional rules and limits apply. Contact us with questions.
Cost control takes a total team effort
They say you’ve got to spend money to make money. But that doesn’t mean business owners should accept high operational costs. Cost control is a formal management technique through which you evaluate operations and isolate activities with excessive expenses. It forces you to ask tough questions about the efficiency of your business, how much you’re paying for supplies or materials, and whether technological upgrades are needed. This isn’t something you can do on your own. You’ll need a total team effort from managers and advisors. Let us be a part of that team.