Tax and Finance Management

Four Steps to Streamline Your Accounting

Because accounts payable departments play a critical part in a business’ success, Paymerang — an OMA Connections Partner — has published these four tips to help organization’s streamline their accounting offices. 10/3/2022

How to Protect Your Business in a Slowing Economy

Small businesses are often the first to feel the effects of a slowing economy. OMA Connections Partner Gilmore Jasion Mahler has published these reminders on how to protect your business when clouds gather on the economic horizon. 10/4/2022

Cleveland Ordered to Refund Municipal Income Taxes

The Buckeye Institute — a conservative think tank — has won a case in which it challenged Ohio’s tax rules (House Bill 197) that allowed cities to continue to collect taxes from remote workers during the pandemic. During the early months of COVID-19, employers sought the provision in HB 197 so they wouldn’t have to refigure local income tax withholdings for each employee working remotely.

The case, which involved the City of Cleveland and a doctor who had been working out of state, is one of five brought by the Buckeye Institute, including those in Toledo, Columbus, and Cincinnati. One case is pending before the Supreme Court of Ohio.

Read more via The Plain Dealer and the Institute’s press release. 9/28/2022

Guidance on the CHIPS Act’s Manufacturing Credit

Manufacturers of all sizes may be eligible for the new advanced manufacturing tax credit, authorized by the federal CHIPS Act.

This insight from OMA Connections Partner CliftonLarsonAllen says the new income tax credit of 25% is for qualified investments in eligible advanced manufacturing facilities. The primary purpose of such facilities must be manufacturing semiconductors or semiconductor manufacturing equipment. 9/27/2022

Study: Stricter Interest Expense Limitations Cost Half Million U.S. Jobs

The National Association of Manufacturers reports that failing to reverse a stricter federal limit on deductions for interest on business loans will cost 467,000 jobs and $43.8 billion in GDP, according to new analysis.

This year, a stricter limitation based on a company’s earnings before interest and tax took effect — excluding depreciation and amortization from the calculation — thereby increasing the tax burden on manufacturers that make investments in capital equipment. 9/28/2022

Analysis: Fed Rate Could Hit 4.5% by Year’s End

On Sept. 21, the Fed not only raised its policy rate by three quarters of a percentage point, it projected that the policy rate will reach 4.4% by the end of the year in hopes of bringing inflation back in line with the Fed’s target of 2%. Read this insight from OMA Connections Partner RSM.

Creighton University economics professor Ernie Goss, who specializes in analyzing Midwest manufacturing conditions, says “stagflation” — along with a very strong dollar and weak global growth — will impact manufacturers. 9/22/2022

Where Do People Pay the Most in Property Taxes?

With a median property tax bill of more than $5,750 in 2020, property owners in Delaware County face the highest property tax burden in Ohio, according to a new comparison by the Tax Foundation. See the Foundation’s interactive map for a county-by-county look at median property taxes paid in every U.S. county. 9/21/2022

Report: More Companies Using Zero-Based Budgeting

As inflation continues, many companies — including manufacturers — are turning to zero-based budgeting as a tool to scrutinize costs, find efficiencies, and lower expenses. Read this insight by OMA Connections Partner Schneider Downs. 9/22/2022

Economic Barometer: September 2022

• U.S. consumer prices edged up 0.1% in August as core inflation — excluding energy and food — rose 0.6% for the month, indicating higher costs have expanded beyond energy.
• The producer price index (wholesale prices) declined 0.1% last month, due mostly to lower fuel prices. The index is up 8.7% on a year-over-year basis.
• The Federal Open Market Committee will likely increase the federal funds rate by 75 basis points at its Sept. 20-21 meeting, said Chad Moutray, chief economist for the National Association of Manufacturers. (Some economists predict a full-percentage-point increase.)
• To get inflation under control, Fed officials need to push the federal funds rate to 4% or higher before considering a pause, said Joseph Brusuelas, chief economist for OMA Connections Partner RSM.
• Overall U.S. industrial production fell by 0.2% in August, the first decline in three months, amid a slowdown in manufacturing and a sharp drop in electricity production.

Meanwhile, a Bank of America survey of 212 fund managers finds 92% of them now expect corporate profits to decline next year, with high inflation being seen as the biggest factor. 9/15/2022

Benefits of Using Lease Management Software to Implement ASC 842

The time frame for implementing the new lease accounting standard, ASC 842, is only a few short months away. OMA Connections Partner Clark Schaefer Hackett has published this insight on the advantages of using a lease management software tool rather than relying on more conventional methods. 9/15/2022