Plan for Your Future with a Three-step Process

Building a successful business likely took you years of planning to build up a business worthy of pride. The next step is ensuring you have a plan in place for the future of your business and your ownership. It may seem like there are years ahead to properly plan for the future; however, this is not always true. We believe that the most effective way to position yourself for future success is to begin a three-step process that will help you answer questions about your current ownership, how you picture the rest of your life, and how your decisions can affect the people and things you care about most.

For more information on the three-step process to plan for your future, click here.

Click here to subscribe to HSC STEPS newsletter, and twice monthly you will receive in-depth articles on succession, transition and estate planning. Contact Kyle Wininger at 800.880.7800 ext. 1412 or at kwininger@hsccpa.com.

Harding Shymanski Construction Team Earns #24 National Ranking

CE Top 50 HSC Ranked 24 SocialHarding, Shymanski & Company’s Construction Team is proud to be ranked #24 in the nation in Construction Executive’s Top 50 Construction Accounting Firms. “We’re excited to be recognized among the top CPA firms in the country who serve clients in the construction industry,” said Paul Esche, CPA, CCIFP, CCA.

CE reached out to hundreds of accounting firms in the U.S. who have dedicated construction industry practices to learn more about both their practices and their clients’ biggest concerns.

“Earlier this week we hosted our annual Ohio Valley Construction Market Forums in Evansville and Louisville where we shared the results from our annual regional survey,” said Esche. “We saw similar results to those being reported on a national level.”

Overall, the 2019 Ohio Valley Construction Market Outlook Survey respondents reported a mostly positive outlook with workforce issues and increasing competition ranking high on their list of concerns. In addition, the industry faces two accounting changes that could significantly impact their financial performance metrics: revenue recognition and lease accounting.

For more information about our construction industry services, contact Paul Esche, CPA, CCIFP, CCA or Greg Elpers, CPA, CCA or Andrea Strange, CPA.

The Future of Risk: 5 Trends to Watch in 2019

2019 has proven to be an interesting year for many middle market companies from an economic and risk perspective. According to RSM’s 2019 Economic and Risk Outlook webcast, economic growth is decelerating at a projected 2.2% overall, the U.S. labor market is currently on the upswing as job creation through the year is averaging 155,000 per month, and middle market companies are reporting recruitment and the ability to retain skilled employees to be key stressors. Along with these economic challenges, companies also face risks relating to global political tensions, technology threats, and new data privacy demands.

The following are the most prominent risks that middle market companies should evaluate and address for future success:

  • Volatility and global supply chain.
  • Culture and conduct.
  • Cloud risk and compliance.
  • Technology risk transformation.
  • Rise of data privacy regulations.

For more information on how your company can prepare for these risks, click here or contactJohn Rittichier, CPA at 800.880.7800 ext. 8484 or at jrittichier@hsccpa.com.

Scott Olinger Named Chief Executive Officer

Trudy Stock and Scott Olinger of Harding Shymanski and Comany.
Harding, Shymanski and Company, P.S.C., announces a leadership transition as President & CEO Trudy Stock, CPA, CGMA (left) will transition the role of CEO to Scott Olinger, CPA, CGMA, CPIM on January 1, 2020.

Harding, Shymanski and Company, P.S.C., is pleased to announce that Scott A. Olinger, CPA, CGMA, CPIM, has been named Chief Executive Officer (CEO) & President for the firm effective January 1, 2020. The firm will continue to be headquartered in Evansville, Indiana. Olinger will take on the responsibilities of CEO from the Louisville, Kentucky, office where he will continue to serve as President for the Louisville Region. The move comes as part of a planned internal succession in which Trudy Stock, CPA, CGMA, will continue to work full time as Chairman of the Board and President for the Evansville Region.

“Scott’s commitment to innovation and growth make him a natural successor,” said Stock. “His dedication to expanding the firm’s reach into the Louisville and Southeastern Indiana region has demonstrated his commitment to our core mission which is to help our clients, our people, and our firm be more successful.”

Olinger who joined the firm in 1995, has been dedicated to the expansion of the Louisville, Kentucky, service area since 2004. “This is a time of great change for the CPA profession where I believe we will see more changes in the next five years than we have seen in the previous two decades,” said Olinger. “I am humbled and proud to follow in the footsteps of four great leaders as our firm continues to deliver exceptional service to our clients as one team, one firm.”

Indiana’s New Market-Based Sourcing Rules

Effective January 1, 2019, Indiana has adopted a market-based sourcing approach for sales other than the sale of tangible property. This significant shift from the previous cost of performance approach bears some significant tax consequences for service providers whose markets stretch across state lines. Sales of tangible personal property continue to be sourced to where the goods are physically shipped or delivered.

Sales of services are now attributable to Indiana to the extent that the benefit of the service is received in Indiana, rather than where the service was performed. For example, an Indiana-based company performing a service for a customer located in New York is no longer required to apportion the sales from that service to Indiana. The opposite holds true, however, in that a New York firm providing services to a customer in Indiana will be required to source those sales to Indiana.

This shift has the potential to provide a tax benefit to Indiana companies performing service work in other states, while also potentially drawing in revenue from out-of-state service companies. Keep in mind that these new sourcing rules may conflict with the rules in other states, so it is important to consult your tax advisor in these matters to come up with an optimal result.

For more information on how your company will be impacted by the new sourcing rules contactJohn Rittichier, CPA at 800.880.7800 ext. 8484 or at jrittichier@hsccpa.com.

How Manufacturers can Prepare for Slower Economic Growth

Starting in the first quarter of 2019, several economists began pointing to financial indicators suggesting a market slow-down or even a recession may be looming. While a slow-down or recession is not certain, identifying early indicators and preparing for the next downturn in the economy could prove key to outlasting the competition.

The following are a few things to consider in any market condition, but in particular for preparing for a recession.

  • Are inventory counts at optimal levels in regards to cost savings?
  • Have discretionary selling, general, and administrative expenses been identified?
  • Have business processes been evaluated to ensure they are designed in consideration of cost effectiveness?

For more information on how your company can adapt in slow economic conditions, click here or contact Scott Olinger, CPA, CGMA, CPIM at 800.880.7800 ext. 8466 or at solinger@hsccpa.com.

2019 Ohio Valley Construction Market Outlook Forum Featuring Gregg Schoppman

2020 Vision and Beyond – Strategize for Tomorrow and Achieving Operational Excellence 

The results are in from the 2019 Ohio Valley Construction Market Outlook Survey. For the fourth consecutive year, Harding, Shymanski & Company, P.S.C. surveyed construction industry executives in the Ohio Valley Region in order to capture industry benchmarks, identify best practices and discover emerging trends.

In addition to sharing survey results, this year’s forum will feature Gregg Schoppman, Principal and Florida Consulting Manager at FMI. Gregg will discuss Strategic Planning and Project Management, our topics will include: Continue reading “2019 Ohio Valley Construction Market Outlook Forum Featuring Gregg Schoppman”

New Kentucky Tax Law Brings Additional Changes, Clarifications

Recent legislation is bringing continued changes for both business and individual taxpayers in Kentucky. Laws enacted during the 2018 regular session of the General Assembly made major strides to update the Commonwealth’s tax system. For a summary of the 2018 law changes, please read our previous article. House Bills 354 and 458 from the 2019 session of the General Assembly continue the work of reform. The new laws affect corporate and individual income tax, sales and use tax, property tax, as well as other miscellaneous taxes and administrative items.

Key provisions of the new law include the following:

Individual Income Tax (effective January 1, 2019)

  • Estimated income tax payments now follow the federal rules, with four equal installments and safe harbor rules to avoid underpayment penalties. For the purpose of avoiding an underpayment of estimated tax penalty, individuals are required to pay: (1) 90% of their current-year estimated Kentucky income tax as estimated tax payments; or (2) 100% of their prior-year Kentucky tax. High-income individuals whose prior-year adjusted gross income exceeded $150,000 ($75,000 if married filing separately) must pay at least 110% of their previous year’s income tax. Due to the late enactment of this change, the Kentucky Department of Revenue will grant transitional relief from the 110% safe harbor for 2019 as long as at least 100% of 2018 tax is paid.
  • Investment interest paid to generate taxable income and gambling losses incurred to produce taxable gambling winnings are once again allowable as itemized deductions for Kentucky’s individual taxpayers.
  • A new check-off allows individual taxpayers to designate a portion of their refund to the YMCA.
Corporation Income Tax and Pass-Through Entities (effective January 1, 2019)
 
  • Kentucky’s corporation income, limited liability entity, and non-resident withholding estimated tax filing rules are now in alignment with the federal rules. Estimated payments are now due April 15, June 15, September 15, and December 15. A corporation or limited liability pass-through entity can avoid an underpayment penalty if total estimated tax payments for the tax year equal or exceed the smaller of: (1) 100% of the current year’s tax liability; or (2) 100% of the preceding year’s tax liability.
  • Small businesses in Kentucky will benefit from enhanced deductibility of major asset purchases by increasing the IRC §179 expense deduction from $25,000 to $100,000 per year.
  • C corporations are now allowed a 7-month extension to file complete and accurate returns.
  • To provide additional clarity, several enhancements to the corporation income tax unitary business filing requirement were enacted.
  • C corporations can elect to file “same as federal” consolidated Kentucky returns. The new law shortens the mandatory election period from 8 years to 4 years to match Kentucky’s statute of limitations and to provide more flexibility for taxpayers in a rapidly changing economy.
Property Tax (effective January 1, 2020)
  • Small businesses with property valued at $1,000 or less are no longer required to file tangible personal property tax returns.
  • The tangible personal property ad valorem tax statutes were amended to treat heavy rental equipment as inventory.
  • All property tax protests can now be filed up to 60 days after a tax assessment is issued or a refund is denied.
Sales and Use Tax (effective January 1, 2019 unless otherwise noted)
  • Relief has been provided for non-profit organizations. The new law exempts admissions from sales tax for all charitable, nonprofit civic, governmental, and other nonprofit organizations. Also exempted are sales of property at fundraising events, subject to certain limitations. These provisions became effective March 26, 2019.
  • In continued fallout resulting from the U.S. Supreme Court case South Dakota v. Wayfair, Inc., the definition of marketplace provider has been clarified. The remote seller use tax notice requirement was also repealed. The 2018 law change previously allowed Kentucky to collect the sales tax from remote retailers selling tangible personal property or digital property in Kentucky. To be required to collect the tax, the remote retailer must meet one of two thresholds: 1) 200 or more separate transactions in Kentucky in the previous or current calendar year, or 2) Gross receipts exceeding $100,000 in the previous or current calendar year from Kentucky transactions.
  • To align with the resale of tangible personal property, a resale exemption is available for taxed services. Additionally, certain large taxpayers can also use Direct Pay permits to self-assess tax on their purchases of taxable services.
  • The requirement to collect tax on sales of services is removed for certain small providers. A de Minimis threshold applies if gross receipts are less than $6,000 during a calendar year. This provision is retroactively applied to calendar year 2018 and onward.
For additional information, please contact John Rittichier, CPA at 800.880.7800 ext. 8484 or at jrittichier@hsccpa.com or Aaron Wilzbacher, CPA at 800.880.7800 ext. 1322 or email awilzbacher@hsccpa.com.

2019 Summer Office Hours Begin May 24th

Harding, Shymanski & Company, P.S.C. Offices will close at Noon local time on Fridays starting May 24th and continuing through the Labor Day holiday.

“Our employees work hard year-round and especially during the busy season,” said Trudy Stock, CEO & President of the firm. “We offer this alternative schedule in acknowledgement of the team’s commitment to serving our clients.”

Regular office hours of 8:00 a.m. to 5:00 p.m. will resume on Tuesday, September 3rd.