Investment in Employees & Capital

Many companies are in the process of putting the final touches on their short and long term budgets, which often involve projections for investment in employees and capital. Investment in people might include additional expenditures for training, hiring additional employees and training those new employees to support business growth. Investment in capital might include adding an additional line of machinery, expanding an existing building, building a new building or something as simple as increasing the current level of investment in inventory.

Two of the primary attributes a business owner will consider in deciding whether or not to make an investment is return on investment and cash flow. Did you know your tax advisor can help you increase your return on investment and increase your cash flow on these types of investments?

Any time you think you might invest in capital and/or employees, you should contact your tax advisor. Your tax advisor can help you secure cash flow savings and increase your return on investment by focusing in on the following areas:

  • Federal, state and local credits
  • Federal, state and local incentives
  • Non statutory grants and incentives
  • Federal, state and local deduction acceleration
  • Real and personal property tax reductions
  • Sales and use tax savings
  • Many others

Make sure you don’t miss out on these savings opportunities. Sit down with your tax advisor today and map out your current and future investment plans and discover how you can capture these savings. Upfront planning and consultation can and will pay dividends for you for years to come.

This article was originally published in Illuminations: Facts & Figures from people with a brighter way, a Rea & Associates enewsletter, 1/9/2008.