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How Manufacturers can Prepare for Slower Economic Growth
  
Starting in the first quarter of 2019, several economists began pointing to financial indicators suggesting a market slow-down or even a recession may be looming. While a slow-down or recession is not certain, identifying early indicators and preparing for the next downturn in the economy could prove key to outlasting the competition.
 
The following are a few things to consider in any market condition, but in particular for preparing for a recession.
  • Are inventory counts at optimal levels in regards to cost savings?
  • Have discretionary selling, general, and administrative expenses been identified?
  • Have business processes been evaluated to ensure they are designed in consideration of cost effectiveness? 
For more information on how your company can adapt in slow economic conditions, click here or contact Scott Olinger, CPA, CGMA, CPIM at 800.880.7800 ext. 8466 or at solinger@hsccpa.com.
Indiana's New Market-Based Sourcing Rules
  
Effective January 1, 2019, Indiana has adopted a market-based sourcing approach for sales other than the sale of tangible property. This significant shift from the previous cost of performance approach bears some significant tax consequences for service providers whose markets stretch across state lines. Sales of tangible personal property continue to be sourced to where the goods are physically shipped or delivered. 

Sales of services are now attributable to Indiana to the extent that the benefit of the service is received in Indiana, rather than where the service was performed. For example, an Indiana-based company performing a service for a customer located in New York is no longer required to apportion the sales from that service to Indiana. The opposite holds true, however, in that a New York firm providing services to a customer in Indiana will be required to source those sales to Indiana.

This shift has the potential to provide a tax benefit to Indiana companies performing service work in other states, while also potentially drawing in revenue from out-of-state service companies. Keep in mind that these new sourcing rules may conflict with the rules in other states, so it is important to consult your tax advisor in these matters to come up with an optimal result.

For more information on how your company will be impacted by the new sourcing rules contact John Rittichier, CPA at 800.880.7800 ext. 8484 or at jrittichier@hsccpa.com.
The Future of Risk: 5 Trends to Watch in 2019
   
2019 has proven to be an interesting year for many middle market companies from an economic and risk perspective. According to RSM's 2019 Economic and Risk Outlook webcast, economic growth is decelerating at a projected 2.2% overall, the U.S. labor market is currently on the upswing as job creation through the year is averaging 155,000 per month, and middle market companies are reporting recruitment and the ability to retain skilled employees to be key stressors. Along with these economic challenges, companies also face risks relating to global political tensions, technology threats, and new data privacy demands.

The following are the most prominent risks that middle market companies should evaluate and address for future success:
  • Volatility and global supply chain.
  • Culture and conduct.
  • Cloud risk and compliance.
  • Technology risk transformation.
  • Rise of data privacy regulations.
  For more information on how your company can prepare for these risks, click here or contact John Rittichier, CPA at 800.880.7800 ext. 8484 or at jrittichier@hsccpa.com .

Plan for Your Future with a Three-step Process
 
Building a successful business likely took you years of planning to build up a business worthy of pride. The next step is ensuring you have a plan in place for the future of your business and your ownership. It may seem like there are years ahead to properly plan for the future; however, this is not always true. We believe that the most effective way to position yourself for future success is to begin a three-step process that will help you answer questions about your current ownership, how you picture the rest of your life, and how your decisions can affect the people and things you care about most.

For more information on the three-step process to plan for your future, click here. 

Click here to subscribe to HSC STEPS newsletter, and twice monthly you will receive in-depth articles on succession, transition and estate planning.  Contact Kyle Wininger at 800.880.7800 ext. 1412 or at kwininger@hsccpa.com .
ABOUT OUR MANUFACTURING & WHOLESALE DISTRIBUTION INDUSTRY TEAM
  
From increased competition and continuous quality improvement demands to rising employee benefit costs and declining margins, manufacturers and wholesale distributors are facing greater challenges than ever before. In addition to the services you would expect from an
accounting firm, we have a dedicated team ready to assist you with the unique challenges and issues facing your industry.
 
A number of our staff members belong to The Association for Operations Management (APICS) with some having achieved the CPIM and CIRM certifications. We understand your key issues and possess the drive and determination to help you manage your company on a proactive basis. This commitment positions us at the cutting edge of the industry and enables us to spot trends and deal quickly with the issues your company may be facing.

If you are interested in additional news or event information, stay connected through our website and industry newsletters or follow our LinkedIn Company page.


SEE WHAT OUR CLIENTS ARE SAYING...
 
L&D Mail Masters has grown from a small, home based business to a full-service direct marketing provider with over 135 full-time staff members and 188,000 square feet of production and storage space. Through that period of growth, it became apparent that we needed more than just an accounting firm who prepared our taxes...we needed advice.

We have found Harding, Shymanski and Company to be extremely proactive and there to give us advice, even in advance. They are more than just an accounting firm...they are our Trusted Advisor.

Diane Fischer, President, L&D Mail Masters
Disclaimer: The information contained in this email is for general guidance on matters of interest only. The publication does not, and is not intended to provide legal, tax or accounting advice.

Internal Revenue Service rules require us to inform you that this communication may be deemed a solicitation to provide tax services. This communication is being sent to individuals who have subscribed to receive it or who we believe would have an interest in the topics discussed.
Harding, Shymanski & Company, P.S.C.
800.880.7800 | info@hsccpa.com  | www.hsccpa.com