White Nelson Diehl Evans is dedicated to providing high quality, client focused tax, financial accounting and advisory services to assist our many customers in the manufacturing and distribution sectors:

  • Metal Foundries, Fabrication, Extrusion and Plating
  • Scrap Conversion and Recycling
  • Commercial Printing
  • Automotive and Motorsports
  • Clothing and Apparel
  • Building and Plumbing Components
  • Chemicals and Coatings
  • Computer and Electronics
  • Food and Beverage
  • Furniture and Home Goods
  • Plastics Extrusion and Injection Molding
  • Machine Shops
  • Medical Equipment and Supplies
  • Packaging Products
  • Semiconductors
  • Wire and Industrial Products
  • Textiles and Wood Products
  • Nutraceuticals
  • Pharmaceuticals
Importance of Inventory Management

The sheer volume of transactions that pass through a typical manufacturing and distribution operation trigger a number of tax and business considerations that must be applied strategically. White Nelson Diehl Evans will make sure that you are operating in the most efficient manner, so that cost savings can be redeployed more effectively elsewhere in the business.

Manufacturing and distribution are typically inventory-intensive industries. As such, monitoring reorder points, inventory levels, and lead times is challenging for even the most experienced business operator. Effective supply chain management tactics, accurate inventory costing, maintaining efficient and cost effective inventory levels can result in sizable cost and revenue benefits. Successful manufacturing companies use appropriate inventory tracking systems. Failure to properly develop your inventory system can result in costly raw material overages or shortages, late deliveries that lead to added costs, and potentially lost business. Cost fluctuations can also affect those manufacturers who deal with commodities where pricing changes from day to day. Industry segments such as metals, petroleum based products, chemicals and others can have significant cost implications when forecasting and inventory levels are not effectively managed. The White Nelson Diehl Evans team combines our years of experience with our broad industry knowledge to most effectively capitalize on tax, accounting and business advisory opportunities.

Inventory Valuation Methods

How a business values its inventory in raw materials, work-in-progress (WiP), and finished goods inventory, has a significant impact on pricing and margins, leading to an impact on overall profitability from both financial reporting and taxable income perspectives. Furthermore, when effective cost accounting practices are not taken, management may miss critical data such as when raw material prices should result in a customer price increase, or when shortages have required that purchasing spot market priced raw materials. Inventory valuation methods can impact how material costs are recognized, when they should be expensed, and ultimately differ in their impact to the bottom line. Deciding whether to use standard costing, average costs, FIFO, LIFO, perpetual or periodic inventory methods, can be daunting for many finance teams. White Nelson Diehl Evans uses its extensive experience to review operational procedures and guide our clients toward making the best selection for their business.

Other factors that can impact costing and the overall costs of goods are waste, damage, obsolescence and theft. Having strong internal controls to guard against theft, effectively manage shelf life and product life cycles to reduce obsolescence and procedures that avoid damage or waste result in substantial bottom line improvements. These controls must constantly balance between sufficient inventory levels that avoid manufacturing delays and excessive inventory levels that result in obsolescence, waste and theft. White Nelson Diehl Evans’ auditing and business advisory services provide a review and analysis of business processes to insure that your company has systems in place to maximize profits, improve financial performance, and minimize taxable income.

Perspectives
wnde rex vollmer cpa manager profile

Senior Audit Manager Profile: Rex Vollmer

5/16/17

Rex Vollmer, CPA, is a senior audit manager.  He has a broad range of auditing experience, and has audited companies in a wide range of industries.  He joined the WNDE team in 2016. Rex grew up...

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Cal State Long Beach

WNDE Goes On-Campus to Recruit Top Level Talent

5/10/17

“White Nelson Diehl Evans LLP (WNDE) has just finished its fall-spring on-campus recruitment season,” said Sandra Hague, WNDE’s talent acquisition and brand manager, who visited five local...

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Tax Tip: Selling Your Home Might Impact Your Income Taxes

5/09/17

By Michael R. Ludin, CPA, tax and audit partner In recent years, there have been some significant increases in real estate values and many people are considering selling their homes.  There...

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Tax Planning Guide

At White Nelson Diehl Evans, we know how difficult it is to stay ahead of the complex and dynamic tax laws. From new standards changing revenue recognition rules to the impact of the Affordable Care Act, our goal is to help our clients stay in front of tax issues that impact your bottom line. To help in this effort, we have put together a comprehensive tax-planning guide and it’s available to download for free.

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Partner Testimonial

“The manufacturing and distribution industries are a core focus for WNDE, and have been for over 60 years. We recognize that this sector is the lifeblood of the economy, and strive to deliver audit, tax and advisory services to help our clients meet compliance requirements and improve their bottom line.”

Brian Wilterink Audit Partner