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The COVID-19 pandemic has changed the way we work and created even more dire staffing shortages for businesses around the country. It’s possible there’s a new way to approach staffing when it comes to your internal accounting needs. Enter Outsourced Accounting at GJM.

Established in 1996, Gilmore Jasion Mahler, LTD (GJM) is the largest public accounting firm in Northwest Ohio, with offices in Maumee and Findlay. Locally owned, GJM offers cloud-based accounting and provides comprehensive services including assurance, business advisory, tax, risk advisory, healthcare management and outsourced accounting. The firm’s professionals specialize in industries including construction & real estate, healthcare, manufacturing & distribution and utilities.

Paycheck Protection Program (PPP)

If your business is one of the many that took advantage of the Small Business Administration’s Paycheck Protection Program (PPP) during the Covid-19 pandemic, we have an important update. Some businesses that applied for first round PPP loans are running out of time to apply for loan forgiveness. It depends on the dates of your covered period as part of the PPP loan. Borrowers must apply for forgiveness within 10 months of the last day of their covered period. That could be later this month for some. Be sure to speak with your GJM team if your business has yet to file for forgiveness or reach out to your lender for clarification. If you fail to apply for forgiveness, the PPP loan will be treated as a non-forgivable loan that your business must pay back.

Employee Retention Credit (ERC)

The IRS has come out with some clarification on guidelines for businesses taking advantage of the Employee Retention Credit.  As the extended tax deadline approaches for businesses to file their 2020 federal tax returns, now is the time to iron out how your business plans to utilize the ERC. Something else to keep in mind: new infrastructure legislation introduced in early August may impact how your business utilizes ERC. As the bill stands now, it is possible that ERC may no longer apply in the fourth quarter of 2021. The IRS has provided a brief summary of some key changes, as well as the entire notice (IRS Notice 2021-49), which you can access at this link.

Should you have any questions about your PPP forgiveness process, ERC, or other updates to pandemic relief programs for your business or organization, don’t hesitate to reach out to your GJM client service team to discuss.

Established in 1996, Gilmore Jasion Mahler, LTD (GJM) is the largest public accounting firm in Northwest Ohio, with offices in Maumee and Findlay. Locally owned, GJM offers cloud-based accounting and provides comprehensive services including assurance, business advisory, tax, risk advisory, healthcare management and outsourced accounting. The firm’s professionals specialize in industries including construction & real estate, healthcare, manufacturing & distribution and utilities.   

Gilmore Jasion Mahler, LTD (GJM) is pleased to announce a number of staff promotions in both the Maumee and Findlay offices, effective July 1, 2021.

Caitlin Bainter, CPA and Amanda Lewis, CPA have been promoted to Senior Manager. Ryan Avery, CPA, Ryan Emerson, CPA and Mackenzie Gross, CPA have been promoted to Manager. Adam Larkins, CPA, Alyssa Lecurgo, Dana Lumbrezer, CPA and Chris Scherley are promoted to Supervisor and Cassi Cronin, CPA, Emily Eckroth, CPA, Thomas Keyser, Hayden Neese and Grace Reddick, CPA are promoted to Senior Associate. 

“These promotions reflect hard work, dedication and commitment. The past year has been anything but normal. Our staff, including all those promoted this month, have done a remarkable job of staying focused, getting the work done and staying connected as a team,” says Managing Partner Kevin Gilmore. “It is gratifying to see our staff advance in their careers and professional development.”  

There are currently several opportunities at GJM for those just beginning their careers, and for more experienced professionals in tax, assurance, and risk advisory. Learn more at GJMLTD.com/careers.

Established in 1996, Gilmore Jasion Mahler, LTD (GJM) is the largest public accounting firm in Northwest Ohio, with offices in Maumee and Findlay. Locally owned, GJM offers cloud-based accounting services and provides comprehensive services including assurance, business advisory, tax, risk advisory, healthcare management and outsourced accounting. The Firm’s professionals specialize in industries including construction & real estate, healthcare, manufacturing & distribution and utilities.

Question: Do I need to include my Payroll Protection Program (“PPP”) loan or HHS Provider Relief funds when calculating Ohio Commercial Activity Tax (CAT)?

Answer from Jennifer Bryant, Healthcare and Accounting Services Team:

Many Ohio businesses received funding from both the Payroll Protection Program and the HHS Provider Relief Funds that were part of the CARES Act, the sweeping legislation designed to infuse the American economy with much needed liquidity. As these businesses file their Commercial Activity Tax (CAT) returns, it is important to understand how the State of Ohio is treating the receipt of these funds.

Ohio specifically addresses the HHS Provider Relief funds, stating that these funds are not excluded from a taxpayer’s gross receipts for purposes of the CAT. But, there is an exception. If the healthcare provider is a nonprofit organization (as that term is defined in Ohio Administrative Code 5703-29-10), that nonprofit organization is excluded, and therefore not subject to CAT.

In regard to the PPP funds, the Ohio General Assembly modified the definition of “gross receipts” to specifically exclude all forgiven PPP loans from Ohio CAT. Those forgiven PPP loans have been excluded from federal gross income under §1106(i) of the CARES Act. In other words, forgiven PPP loan principal will be excluded from the tax base for federal income tax purposes and Ohio Commercial Activity Tax. 

Should your organization have any questions regarding this issue, please reach out to your GJM advisory team for help.

(Jennifer picture)

Jennifer Bryant is a supervisor in the firm’s healthcare department. She came on board with Gilmore Jasion Mahler in January of 2002. A member of the firm’s Healthcare and Accounting Services Team, she works closely with clients to ensure that their healthcare practices run smoothly, handling monthly financials and often fielding questions and offering guidance on a variety of client issues. Jennifer’s areas of expertise include ambulatory surgery centers, physician practices and dental practices.    

A graduate of Davis College, Jennifer is a member of the Ohio Society of Certified Public Accountants (OSCPA).

Established in 1996, Gilmore Jasion Mahler, LTD (GJM) is the largest public accounting firm in Northwest Ohio, with offices in Maumee and Findlay. Locally owned, GJM offers cloud-based accounting and provides comprehensive services including assurance, business advisory, tax, risk advisory, healthcare management and outsourced accounting. The Firm’s professionals specialize in industries including construction & real estate, healthcare, manufacturing & distribution and utilities.  

In these unprecedented times, manufacturers and their supply chains are facing many challenges. We were reminded in recent weeks that supply chain disruptions can come out of the blue, when the giant freighter “Ever Given” got wedged in the Suez Canal for almost a week, blocking a critical trade route and halting the movement of goods. Its impact on global supply chain is still evolving. The “Ever Given” incident only compounds the massive supply chain disruption over the past year brought on by the global COVID 19 pandemic. What can manufacturers learn from these disruptions? Can your business gain a clearer understanding of your supply chain challenges so you’re better prepared for the inevitable disruptions of the future?

Gilmore Jasion Mahler, LTD (GJM) brought together a virtual panel discussion to help manufacturing businesses identify opportunities for supply chain improvement. The March 11 webinar, moderated by GJM’s Wes Beham, featured guest panelists David Cohn and Bart Huthwaite from RSM Supply Chain Services. GJM is a member of the RSM US Alliance. Also featured on the panel, with the private industry perspective: Andrew Risner, Director of Procurement and Global Supply Chain Management for Findlay-based manufacturer Rowmark.  

A Bright Note to Start

In spite of all the challenges facing manufacturers, there is reason for optimism. A survey done of attendees prior to the GJM roundtable webinar found that 74% of those surveyed were somewhat or very optimistic about the future. Survey respondents said their greatest concern over the next year is building their workforce. Their second greatest concern: uncertainty in demand and supply shortages.

Rowmark’s Andy Risner says 2020 was a challenging year as they responded to the pandemic. He says the company was already reexamining its footprint before COVID-19 to better align with customer locations. As a global distributor, he says efficient movement of goods is certainly one of Rowmark’s top priorities.

“Shipping costs increase each year and service levels are important,” he says. “So, you take that coupled with the Amazon affect; you know, people want it, and they want it in two days, and they don’t want it to come in three different shipments… We don’t want to pay for split ship, so, shipping costs are a very big part of our business and we really spent the last two years trying to get our arms around it.”  

Understand the Nature of Supply Chain Disruptions

RSM’s David Cohn says disruptions in supply chains happen on an average of 3.7 years, resulting in an average of 42% profit of its earnings before interest, taxes, depreciation, and amortization (EBITDA) over the course of ten years. Unfortunately, these disruptions are expected to become more frequent as globalized chains become more tightly linked, as well as other reasons, such as climate change.

Know the Five Enterprise Risk Categories

• Operational Risks. This risk category includes the ability to forecast supply disruptions, labor competition and availability, and the uncertainty of demand by the consumer.
• Financial Risks. This risk factor includes supplier costs, currency fluctuations, and even dealing with fraud. 
• Strategic Risks. This category of risk involves the impact of competitors and the perception of vulnerabilities, and the adaptability of business models.
• Regulatory Risks. Mitigating these risks means planning around taxation and other similar factors.
• Unforeseeable Risks. These risks include natural disasters such as earthquakes or tornadoes, socioeconomic risks, and even war. You can add stuck barges to that list now, too.

Prioritize Value Chain Preparedness

RSM’s Bart Huthwaite says you need to be as efficient and effective as you can, while ready to react and adapt to outside forces. He says prioritizing preparedness includes these steps:

• Analyze. Be sure to analyze the flow and efficiency of the supply chain.

• Anticipate. Preparedness means being able to anticipate what parts of the chain are most vulnerable. It is highly recommended you use predictive analytics.
• Plan. Be prepared to restructure the company. It is also important to note the balance needed between efficiency and risk. A costly mistake many companies make is not considering risk in the name of efficiency.
• Execute. The final step is to execute well thought out plans. Know how much the changes will cost and the way it improves productivity.

Learn from Industry Leaders

Industry leader David Cohn of Supply Chain Services says that improving supply chain stability includes organizational alignment, or “Trying to get the right hand of the company to talk more effectively with the left hand of the company… This means all links of the chain must work together, cross functionally to align supply with demand.” This can look like anything from major company restructuring to monthly meetings.

What else should you examine to prepare for the future? Here’s what the RSM Supply Chain Services team says supply chain experts are doing to help protect businesses:

• Network rationalization: evaluate/optimize your distribution centers
• Demand Planning/Forecasting
• Supply planning
• Sourcing strategy: should you look more regional, with less reliance on Asia, for example?
• Operational visibility: a clearer view of your inventory, capacity. Possible technology adoption to streamline these efforts
• Inventory management: focus on the critical SKUs so you have capacity to meet demand
• Supplier relationship management
• Supplier/third party risk management
• Advanced analytics
• Simulation-scenario planning
• “Control tower” (get a high-level view/insight into your entire supply chain)  

Our experts say that building a strategy for your business around supply chain management, with these principles as a framework, will better prepare your company for the disruptions of tomorrow.

If you have any questions or concerns, please reach out to your GJM team or contact us via our website for assistance.  

Established in 1996, Gilmore Jasion Mahler, LTD (GJM) is the largest public accounting firm in Northwest Ohio, with offices in Maumee and Findlay. Locally owned, GJM offers cloud-based accounting and provides comprehensive services including assurance, business advisory, tax, risk advisory, healthcare management and outsourced accounting. The firm’s professionals specialize in industries including construction & real estate, healthcare, manufacturing & distribution and utilities.

RSM US Alliance (www.rsmus.com/alliance) is a premier affiliation of independent accounting and consulting firms in the United States, with more than 75 members in over 38 states, the Cayman Islands and Puerto Rico. RSM US Alliance provides its members with access to resources of RSM US LLP, the leading provider of audit, tax and consulting services focused on the middle market, with more than 9,000 people in 86 offices nationwide. RSM US Alliance member firms are separate and independent businesses and legal entities that are responsible for their own acts and omissions, and each are separate and independent from RSM US LLP. Members of RSM US Alliance have access to RSM International resources through RSM US LLP but are not member firms of RSM International. For more information, call toll free 800.537.7178 or visit rsmus.com/alliance.