CRI cuts through the depths to provide comprehensive solutions designed to help improve your bottom line.
As a manufacturer or distributor, you continually steer against a current of economic challenges that could potentially increase costs, decrease profits, and compromise your competitive advantage. And with intensifying international pressures, the competition no longer has borders. In these waters, leveraging a manufacturing CPA and business advisory firm with deep industry expertise can help you propel your business forward in the marketplace.
CRI’s manufacturing CPAs and advisors are adept at helping clients streamline their operations to strengthen their efficiencies and profitability. We conduct financial statement audits, internal control reviews, employee benefit plan audits, business valuations, and fraud examinations. We also offer tax services that encompass income tax planning, tax compliance, and IRS representation.
Our consulting services address specialized areas of the manufacturing and distribution industry, such as research and development tax credit studies and inventory management procedures. Additionally, we combine business data with our in-depth experience to advise clients of all sizes regarding future business opportunities. Let CRI dive into the nuances of your business to provide comprehensive solutions that help improve your bottom line.
Firm client of 35+ years owns multiple businesses and requested acquisition consulting for a potential addition. After purchasing new business, owner also requested general business consulting for initial decisions and strategies.
CRI helped determine initial acquisition decisions such as purchase offer price and structure of the deal to maximize tax benefits. Once purchased, helped new business owner determine financial needs for operations and expansion. Services included cash flow projections and advising client throughout business loan process.
Purchased new business utilizing strategies resulting in annual tax savings of approximately 20%. Also obtained needed funding to financially support and grow the newly purchased business.
20% annual tax savings
Translating technical jargon into a plain English “text.”
We expanded our product line to take advantage of opportunities we see in different markets. The new products we developed are designed for high-end commercial customers and are significantly more expensive to produce. What is the best way to monitor our performance as we begin producing these new products?
One of the best tools to monitor production performance is the development of a standard cost system. A standard cost system tracks variances between expected “standard” costs and actual costs.
That type of information would be beneficial. Can you explain how it works?
To begin, your production managers and engineers develop projections for the cost to produce each product.
We already do that for our sales team.
Perfect – most well-run companies do. Now, using a standard cost system, you can integrate the information generated by your production team with your accounting records.
What are the steps to accomplish that?
The cost projections you develop should include expected costs for direct material, direct labor, and overhead. Your accounting department uses these amounts to record the expected costs in your accounting records and then tracks differences from your actual costs in what are called variance accounts. The team then classifies the variances either as pricing variances or as efficiency variances.
I can see how this would increase collaboration within our company.
It certainly will. Production and accounting personnel would be able to see their impact on other departments. For instance, the standards are not static and need to be updated periodically. If there is a permanent increase in material costs with no revision to the standards, then the accounting department reports an unfavorable variance that unfairly reflects negatively upon the purchasing department.
I’m sure this implementation requires a lot of work. What do you suggest as the next step?
Developing and using a standard cost system is complex and requires certain cost accounting skills. The CRI team has considerable experience working with manufacturing companies to develop their cost systems. We also recognize that your team has a vast amount of knowledge and experience directly related to your operations. I recommend that we meet individually with your key production and accounting personnel to gather information on your processes. We can then provide you with an implementation assessment. Let’s set some times for us to meet with your team so that we can get started.
Our story as shared by our clients.
For almost a decade, CRI has provided us with external audit, employee benefit plan audit, tax planning and consulting services. The team's proactive solutions - such as assistance with bank refinancing – have helped us weather a difficult economic environment. CRl's manufacturing expertise, responsiveness and attention to detail have positioned them as our trusted advisors."