How tax preparers save small businesses money on manufacturing

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Manufacturing businesses face unique financial challenges, but tax preparers can help unlock significant savings by optimizing tax strategies. With their expertise in identifying deductions, credits, and cost-saving opportunities, tax preparers ensure that small businesses in the manufacturing industry are maximizing their financial potential.

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Here are five ways tax preparers save small businesses money on manufacturing:

  • Tax Credits: Tax preparers identify eligible credits, such as the Research and Development (R&D) tax credit, to reduce manufacturing costs and enhance innovation.

  • Cost of Goods Sold (COGS) Deductions: They help businesses maximize deductions for raw materials, labor, and overhead costs, lowering taxable income.

  • Depreciation Deductions: Tax preparers ensure businesses take full advantage of accelerated depreciation methods for machinery and equipment, reducing tax liabilities.

  • Section 179 Expensing: They guide small businesses in using Section 179 to immediately expense the cost of qualifying equipment and machinery, improving cash flow.

  • Inventory Management: Tax preparers assist in selecting the best inventory accounting methods (e.g., FIFO, LIFO) to minimize taxable income and optimize cost reporting.

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About Hunter Tax Associates

Founded in 2017, Hunter Tax Associates is a boutique tax firm that helps businesses and individuals strategize how to best position themselves for successful financial outcomes.

3130 Crow Canyon Pl Suite 200, San Ramon, CA 94583

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