Manufacturing Articles

When you think about research and development, what images come to mind? Do you think about rows of lab tables surrounded by lab personnel in white coats? Maybe you see little dollar bills floating out the window as you think about the cost of R&D. Perhaps very little comes to mind because you believe your company does not engage in R&D activities. At one time, just about all of these images would have been valid for many of us in business, but times have changed – for the better!

Do you remember the story of the Tower of Babel where everyone winds up speaking different languages and the townsfolk become so confused that they cannot continue the construction project?  Well, international business is a bit like that. As companies of all sizes become increasingly global, they are confronting different accounting standards, cultures, and ethics. As a result, they need financial translators to go forward with projects, minimize tax bills, and stay on the right side of widely divergent laws.

Internal fraud is a serious problem. According to the Association of Certified Fraud Examiners, the aggregate fraud loss for all organizations is 6% of revenues. Generally, the implementation of preventive measures will more than pay for itself in saved costs.

After the Business Ledger’s most recent Newsmaker Forum for the manufacturing industries, we had the opportunity to interview panelist Hugh Elliott. Hugh Elliott is a Senior Manager of Dugan & Lopatka, CPAs in Wheaton and one of the area’s leading experts to manufacturers. Following is a summary of the advice he shared.