Manufacturing & Distribution

Accounting and Advisory Services for Manufacturing Operations

The world of manufacturing and distribution is constantly changing, facing challenges like supply chain disruption and implementing new technology. That’s why it’s important to have an accounting partner and advisor who understands the latest regulations and the unique challenges of your industry. Without that expertise, it’s easy to run into costly mistakes or inefficiencies. In fact, poor accounting practices in manufacturing can create significant financial, operational, and compliance risks.

With deep experience in the manufacturing and distribution space, Mowery & Schoenfeld helps businesses improve cash flow, increase profitability, and address complex problems year-round. We also help you find tax-saving opportunities that can support your long-term growth.

CONTACT US

Anthony Cullotta >
Assurance Partner
Nicole Lindley >
Tax Partner

Insights

R&D Tax Credits: What OBBBA Means for Your Business >
Case Study: Manufacturer Accounting Turnaround >
OBBBA Tax Provisions to Boost U.S. Manufacturing & Business >

Inventory Valuation That Protects Your Largest Balance Sheet Asset

Inventory plays a key role in keeping your manufacturing business healthy. Whether you’re dealing with raw materials, work-in-process (WIP), or finished goods, it’s important to track and value everything accurately. We work with you to choose and maintain the right inventory costing method and make sure it’s aligned with both your tax strategy and your financial reporting needs.

Inventory can be one of the biggest assets on your balance sheet and uses up a lot of cash. Getting the valuation correct is crucial for accurate financial statements, meeting bank requirements, and knowing your company’s financial health. Poor inventory accounting can lead to misstated cost of goods sold, inaccurate profit margins, and tax risk.

Our manufacturing accounting experts help you to set up internal controls for inventory tracking and system reconciliation to maintain accuracy year-round. Our advisors also offer lower-of-cost-or-market (LCM) testing to see what your best plan of action is to maximize your results.

Specialized Advisory and Accounting Solutions for Your Manufacturing Business

Our advisors know that manufacturing and distribution businesses face constant pressure to improve margins, manage cash flow, and keep operations running efficiently. We provide accounting, assurance, tax, and advisory support tailored to the realities of your business.

Our team helps you navigate industry-specific challenges with practical guidance and support. Whether you are dealing with inventory issues, growth planning, reporting demands, turnaround accounting needs, or tax strategy, we work with you to reduce risk, simplify financial processes, and uncover opportunities to improve your performance.

Today’s manufacturers are balancing technology adoption with workforce challenges. We give you financial guidance around automation and AI investments while helping you navigate tight labor markets that put pressure on productivity, wages, and growth plans. That combination of operational and financial insight helps you make decisions that support both near-term stability and long-term performance.

From startups to established companies, we personalize our services to fit your goals and operational needs so you can make informed decisions and position your business for continued success.

Services for Manufacturing and Distribution Companies

Tax Credits and Depreciation Strategies That Keep More Cash in Your Operation

As a manufacturer, you’re eligible for valuable tax credits that many overlook, including the R&D Tax Credit (Section 41) for activities like designing new products or processes  and integrating equipment into new production lines. You can also take advantage of state-level manufacturing tax incentives and the Work Opportunity Tax Credit (WOTC) for hiring individuals from certain groups who have faced barriers to employment. When you work with our team, we proactively identify which credits make sense for you as part of annual tax planning, helping you optimize your tax efficiency.

Depreciation strategies are especially valuable for manufacturers with significant capital equipment investments. We help maximize deductions through Section 179 expensing and 100% bonus depreciation for eligible property. We also factor in immediate expensing for domestic research and experimental expenditures under current Section 174 rules while addressing the continued amortization requirements for foreign R&D to support cash flow and long-term tax planning.

Our tax planning for manufacturers also includes multistate tax nexus analysis, sales and use tax compliance across jurisdictions where goods are sold or shipped, and international tax considerations for manufacturers with cross-border supply chains or export activity.

Financial Reporting and Fractional CFO Support Designed for Manufacturers

Manufacturing financial reporting goes beyond standard income statements and balance sheets; you need production cost reports, gross margin analysis by product line, working capital metrics, and KPIs like inventory turnover, days sales outstanding, and capacity utilization. We build custom reporting packages for you to give you the insights you need to make informed decisions.

Companies that are growing and don’t yet have or need a full-time CFO can turn to our fractional CFO support for manufacturers. We handle financial planning and analysis, cash flow management, and banking relationships, giving you the guidance you need to scale. Our forecasting support gives you rolling budgets and financial projections that account for seasonal demand fluctuations, raw material price volatility, and capital expenditure planning so you have a financial roadmap that aligns with your operational reality.

Ready to Strengthen Your Manufacturing Finances? Talk to M&S Today

Looking for a new accounting and advisory firm with expertise in manufacturing and distribution? We can assess your needs and outline a tailored approach, whether that’s a specialized tax review, outsourced CFO support, or an R&D credit study.

From initial assessment to ongoing annual engagement, our manufacturing team stays hands-on and engaged. We’re there with you through industry ups and downs, law changes, and growth, giving you the same personalized attention that’s helped earn our reputation as a Top 10 Illinois accounting firm.

Get Started with Manufacturing Advisory and Accounting Services from Mowery & Schoenfeld

Talk to an advisor today.