What can you do to impact your tax liability for 2024?

With tax season right around the corner, manufacturers are faced with the crucial task of optimizing their tax strategies to both reduce liabilities and unlock future growth potential.

In part one of a two-part series, I sat down with tax experts Dylan Valentyn and Nick Romanelli from CliftonLarsonAllen (CLA) to explore the critical tax-saving opportunities that could significantly improve cash flow and business sustainability—for 2024 and beyond.

We kick off with a discussion on tax planning, particularly focusing on strategies for deferring taxes and accelerating deductions. Dylan and Nick emphasize how businesses can free up valuable cash flow through smart deferral tactics, such as depreciation, and how this can be reinvested to fuel future growth. They also dive into the importance of working closely with your accountant to ensure that tax strategies are aligned with the business’s long-term goals, especially when planning for 2025.

One of the key strategies explored is reviewing capital expenditures and utilizing powerful tax-saving tools like Section 179 deductions, bonus depreciation, and cost segregation studies. Dylan and Nick explain how these methods can offer immediate tax relief and boost cash flow—saving manufacturers substantial amounts in taxes.

Dylan and Nick also unravel common misconceptions about taxes in the manufacturing sector. They break down the importance of inventory accounting methods (FIFO vs. LIFO), offer insights into managing capital purchases, and provide guidance on how to navigate complex tax decisions that can make or break a business’s financial performance.

This episode is packed with information you can employ to make a difference right now. Don’t miss it.

STAY TUNED: In the next episode, the team will dive even deeper into advanced strategies that focus on long-term tax planning. It will be can’t-miss in-depth advice that could help unlock your business’s full financial potential.

• [2:08] Get to know Dylan Valentyn and Nick Romanelli
• [4:59] Why taxes are a misunderstood concept
• [6:48] What can you do to impact your tax liability for 2024?
• [10:49] Dissecting FIFO versus LIFO
• [15:30] Small business taxpayer exception
• [17:58] Non-incidental materials and supplies
• [19:08] Cash versus accrual accounting
• [26:02] Do contract methods matter to accounting?
• [27:53] What is a cost segregation study?

• CliftonLarsonAllen (CLA)

• Connect with Dylan on LinkedIn
• Connect with Nick on LinkedIn
• Glossary of Terms and More Resources

• Follow on LinkedIn
• Connect with Mike Payne on LinkedIn

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Audio Production and Show Notes by - PODCAST FAST TRACK