Insight from Hall Kistler & Company on Manufacturing: What President Obama’s Manufacturing Budget Proposal Means
By S. Franklin Arner, CPA, Partner
Under President Obama’s budget proposal for manufacturing, there are incentives for small business which will permanently extend increasing the expensing of qualified property for small business. Under Code Sec. 179, there is a $500,000 deduction limit and phase-out beginning at $2 million, including an index for inflation for tax years beginning after 2013. President Obama is also looking for ways to boost manufacturing and the in-sourcing of jobs. The proposal calls for:
- tax credits for investing in qualified property used in a qualified advanced energy manufacturing project;
- establishing an additional 15 “promise zones” to promote job creation and investment in economically distressed areas;
- creating a general business credit equal to 20% of the eligible expenses paid in connection with in-sourcing a U.S trade or business;
- disallowing tax deductions for expenses paid in connection to outsourcing a U.S trade or business;
- and the creation of a new allocated tax credit referred to as “manufacturing communities tax credit” to support investments in communities that have suffered a major job loss event
For over 70 years, Hall, Kistler & Company has been working with clients in the manufacturing industry. To learn more about President Obama’s proposed incentives, contact our team of certified accountants at Hall, Kistler & Company at 330-453-7633.
Insights from Hall Kistler & Company: What has happened to the legacy oil and gas producers in Ohio after the Utica shale discovery?
By Mike Eberhart, CPA, CVA, Senior Partner
I lead the Oil and Gas team at Hall, Kistler & Company and have done extensive work in the Oil & Gas industry throughout my career. You might call the Utica shale discovery a “boom/bust” for the legacy oil and gas producers in Ohio (also known as the vertical well drillers). The “boom” has given them the ability to monetize their deep rights, namely the Utica, Point Pleasant and Marcellus shales. The “bust” for these Ohio producers is the inability to lease acreage, unless they want to pay $5,000 an acre, even if the landowner is allowed to retain their deep rights. The lease boom in the last several years has educated the landowners that they can get around $5,000 per acre. Plus, the oil and gas companies drilling the horizontal wells do not want acreage with a shallow well on it. The other part of the “bust” is the increased costs for oil and gas services and equipment due to the shale boom. The service companies and suppliers are busy with the horizontal wells and are able to charge the highest rates for services and equipment. Two questions remain going forward for these legacy producers: (1) how long will the shale boom last? And (2) will the technological advances be great enough that the cost of drilling a horizontal well is such that they can even consider getting into that business?
To learn more about the work Hall Kistler & Company does in the oil and gas industry, visit http://www.hallkistler.com/oil-and-gas
Walking Through the Cloud: Insights from Hall Kistler & Company about QuickBooks Online
By Sarah Yost, Senior Accountant and QuickBooks Online ProAdvisor
As all of us at Hall, Kistler & Company are aware and as all of you reading this know, the now infamous “cloud” has grown in popularity in recent years and has hit the accounting world. QuickBooks Online has been around for some time, but finally has become more user-friendly and streamlined within the past few years. Below are some pros and cons of QuickBooks Online.
Here are a few of the benefits of converting your file to QuickBooks Online:
- It is online – Being up in the cloud means it is backed up automatically and the software is updated automatically. **Keep in mind, a strong and reliable internet connection is necessary for this luxury.
- PC and Mac friendly – The interface is PC and Mac friendly since it is accessed through an internet browser.
- Accountant access – For our firm, this is a big deal. This means we can troubleshoot right along with you or simply log in and quickly solve any issues you have.
- Speaking from experience, this has been the biggest positive. There are little to no worries in backing up files, sending files and restoring files. All of those stresses are eliminated including their potential to fail. I have seen plenty of corrupted files that can’t be restored, files that are too big and bulky to send via email and the loss of valuable information and time from an old restore gone wrong.
- Anywhere/anytime access – If you have an internet connection and are so inclined, you could log in and check your books.
Here are a few drawbacks to QuickBooks Online we have come across: that we have identified at Hall Kistler & Company.
- It is not easy to “test” a scenario – On the desktop version, there is always the option to backup a file before you make achange. That is not the case online, where pulling information down from the cloud requires a call to support and another call to bring it back up and a possible fee.
- Memorized reports not transferable -If you have very specific memorized reports, QuickBooks Online might not be able to recreate them.
- Cost – This has been the biggest deterrent for many people. As a businessperson, you have to weigh the monthly cost versus the potential 3-year renewal with a desktop version.
- Set up – As with any software, it requires some adjustment to make it your own. In the case of QuickBooks Online, we have found lining up checks takes some doing and getting reports to look and act like you want can be cumbersome at first.
Here is the Myth of QuickBooks Online:
One last item is that of myth busting. I have heard concerns with the lack of controls or audit trail. QuickBooks Online does keep a very detailed report of every activity within QuickBooks Online including logging in, deleting deposits, voiding checks, just to name a few.
Before you buy any QuickBooks products, we have ProAdvisorSM on staff at Hall Kistler & Company (including myself) that receives discounts on all QuickBooks Online software, and we can pass those savings on to you. Call us at 330-453-7633 and let our accountants at Hall Kistler & Company help you navigate the cloud! Find us online at http://www.hallkistler.com/quickbooks-proadvisor