Clayton & McKervey shareholder to present an alternate solution to revenue and lease accounting standards at 2019 AICPA Engage

Southfield, Mich.—May 21, 2019—Clayton & McKervey, a certified public accounting and business advisory firm helping growth-driven companies compete in the global marketplace, announced that shareholder Julie Killian, CPA, is part of a panel that will present on the advantages of implementing a financial reporting option for smaller businesses at the 2019 American Institute of Certified Public Accountants (AICPA) Engage conference. The professional development event for accounting and finance professionals takes place June 9–13 in Las Vegas.

Along with Killian, session speakers Mike Brand Johnson, a partner at Feigley, Newton & Brand, LLP, and Robert Durak, Director of Audit & Accounting Technical Services for the Association of International Certified Professional Accountants, will discuss how accountants can help many private, small- and medium-sized businesses to avoid the difficulties that stem from the new revenue and lease accounting standards. Their presentation, “Does Your Client Have to Adopt the Revenue and Lease Standards? An Alternative Solution,” will take place on June 10 at 3:45 p.m.–4:35 p.m. and cover key topics including:

1) The fundamental principles of the Financial Reporting Framework for Small- and Medium-Sized Entities (FRF for SMEs)
2) How the FRF for SMEs differs from other accounting frameworks
3) How to transition financial statements to the FRF for SMEs

In October 2018, Killian was appointed to the Technical Issues Committee (TIC) of AICPA’s Private Companies Practice Section (PCPS). This national committee is made up of CPA practitioner volunteers who work to represent the views of local firms and their clients in the standards-setting process. TIC monitors the activities of the various standard setting boards including the FASB, GASB and ASB, as well as other AICPA senior committees, and submits comments and recommendations to the standard setters as the collective voice of small and medium-sized firms, as needed. Earlier this month, TIC sent a letter to FASB to request a one-year delay on implementation of a new lease standard, citing an overload of new accounting standards for private companies that are all effective within a similar time frame. The letter was picked up by numerous accounting and business publications including the Wall Street Journal and is currently under consideration by FASB.

Killian was named a shareholder at Clayton & McKervey in July 2018, and leads the firm’s Assurance practice. She works with owners, CFOs and controllers of closely-held companies with operations in the United States, Europe, Asia and Mexico and is focused on the technical and compliance aspects of reporting, including audits and reviews of corporate financial statements, audits of employee benefit plans, and reviews of internal controls and performance reporting. Additional areas of expertise include U.S. Generally Accepted Accounting Principles (GAAP), International Financial Reporting Standards (IFRS), AICPA Financial Reporting Framework for Small and Mid-sized Entities (FRF-SME) and the updated revenue recognition standard released by the Financial Accounting Standards Board (FASB) in 2015. Killian holds a Bachelor of Arts in Accounting from Michigan State University and IFRS certification from the American Institute of Public Accountants.

About AICPA
The American Institute of CPAs (AICPA) is the world’s largest member association representing the accounting profession, with more than 431,000 members, and has a history of serving the public interest since 1887. AICPA members represent many areas of practice, including business and industry, public practice, government, education and consulting. Its mission is to drive a dynamic accounting profession ready to meet the demands of a constantly changing, disruptive world—providing the tools, resources and intelligence needed to clarify complexity, anticipate risk and create opportunity.

About Clayton & McKervey
Clayton & McKervey is a full-service CPA firm helping middle-market entrepreneurial companies compete in the global marketplace. The firm is headquartered in metro Detroit and services clients throughout the world. To learn more, visit claytonmckervey.com.

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Clayton & McKervey shareholders to participate on ACG Detroit panel about Navigating Cross-Border Transactions on June 7

Southfield, Mich.—May 15, 2019—Clayton & McKervey, a certified public accounting and business advisory firm helping growth-driven companies compete in the global marketplace, announced that two of its CPA shareholders, Tim Hilligoss and Margaret Amsden, will be participating in an upcoming panel hosted by ACG Detroit about “Navigating Cross-Border Transactions.” The program will take place on Friday, June 7, from 7:30 a.m. to 9:30 a.m., at The Townsend Hotel in Birmingham, Mich.

The event is designed to help business owners understand the legal, business, banking and accounting issues that surface in a cross-border transaction. The panel will present a description of steps that business owners can take to prepare their companies for successful cross-border transactions, in addition to discussing practical concerns, common issues and best practices.

Hilligoss, who will be a speaker on the panel, provides leadership to Clayton & McKervey’s growing Transaction Service practice. He was recently named Advisor of the Year by the ACG Detroit and was honored at the organization’s fourth annual ACG M&A All Star awards.

Amsden, who will serve as a moderator on the panel, specializes in partnership and Limited Liability Corporation structuring; transaction consulting, structuring and compliance; and mergers, acquisitions and reorganizations. She is a board member for ACG.

For more information about the event as well as a complete list of panelists, please visit https://www.acg.org/detroit/events/navigating-cross-border-transactions.

About ACG
Founded in 1954, the Association for Corporate Growth (ACG) is a global organization with 59 chapters. Its membership is comprised of 14,500 professionals from private equity firms, corporations and lenders that invest in middle-market companies, as well as from law, accounting, investment banking and other firms that provide advisory services. For more information, visit https://www.acg.org/.

About Clayton & McKervey
Clayton & McKervey is a full-service CPA firm helping middle-market entrepreneurial companies compete in the global marketplace. The firm is headquartered in metro Detroit and services clients throughout the world. To learn more, visit claytonmckervey.com.

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Clayton & McKervey shareholder to present on the impact of tax reform at the 2019 CSIA Executive Conference

Southfield, Mich.—April 5, 2019—Clayton & McKervey, a certified public accounting and business advisory firm helping growth-driven companies compete in the global marketplace, announced that shareholder Sarah Russell, CPA, will be a presenter at the 2019 Control System Integrators Association (CSIA) Executive Conference. Now in its 25th year, the conference takes place April 30–May 3 in Asheville, N.C.

Russell’s workshop, May 2 at 1:30 p.m., will focus on “How Tax Reform Impacts Systems Integrators.” She’ll cover key topics, including:

• The impact of the pass-through deduction
• Entity choice evaluation, including how Research & Experimentation Tax Credits impact such decisions
• Considerations for potential accounting method changes
• Review of bonus depreciation and Section 179 rules
• Review of business loss limitations and new net operating loss (NOL) rules
• Limitations on meals and entertainment deductions
• High-level overview of international rules
• Brief overview of individual tax impacts

At Clayton & McKervey, Russell is a point person for implementing tax strategies to help business owners reduce their tax liabilities and maximize cash flow. She advises owners and executive teams of both global and domestic companies on tax planning and tax savings strategies and global operational structuring, working in a variety of industries, including manufacturing and system integration. Russell holds a Masters of Business Administration from Wayne State University and a Bachelor of Science in Accounting from the University of Michigan–Dearborn.

About CSIA
Founded in 1994, the Control System Integrators Association (CSIA) is a not-for-profit, global trade association that seeks to advance the industry of control system integration. Control system integrators use their engineering, technical and business skills to help manufacturers and others automate their industrial equipment and systems. CSIA helps members improve their business skills, provides a forum to share industry expertise, and promotes the benefits of hiring a certified control system integrator. CSIA has over 500 member companies in 40 countries.

About Clayton & McKervey
Clayton & McKervey is a full-service CPA firm helping middle-market entrepreneurial companies compete in the global marketplace. The firm is headquartered in metro Detroit and services clients throughout the world. To learn more, visit claytonmckervey.com.

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Clayton & McKervey named to Accounting Today’s Top Firms – Great Lakes Region

Southfield, Mich.—March 26, 2019—Clayton & McKervey, a certified public accounting and business advisory firm helping growth-driven companies compete in the global marketplace, is pleased to announce it has been included on the list of Top Firms in the Great Lakes Region by the accounting profession’s leading trade publication, Accounting Today. The list was released as part of Accounting Today’s annual listing of the Top 100 Firms in the nation. The Top Firms: Great Lakes considers public accounting firms based in Indiana, Michigan, Ohio and Wisconsin.

“Clayton & McKervey is so pleased to be included on this list of top firms in the Great Lakes region,” Clayton & McKervey President Rob Dutkiewicz, CPA, said. “With a focus on entrepreneurial, global growth-oriented clients, we bring a unique perspective to the business marketplace – and our clients are responding and driving our own business growth. This recognition presents a great opportunity to thank our clients and also acknowledge the terrific efforts of the entire Clayton & McKervey team.”

Clayton & McKervey clients include privately held companies and systems integrators. Services offered include tax, assurance, accounting, consulting and international services, including transfer pricing, international tax, foreign direct investment and global expansion. International practice areas include Mexico and China. Within its consulting services, Clayton & McKervey has a growing transactions services practice and also offers business planning and succession and exit strategies.

About Clayton & McKervey
Clayton & McKervey is a full-service certified public accounting and business advisory firm helping closely held businesses compete in the global marketplace. The firm is headquartered in metro Detroit and services clients throughout the world. To learn more, visit claytonmckervey.com.

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Clayton & McKervey: “R&E tax credit is a ‘smart’ incentive for Industry 4.0 companies to improve financial performance”

Southfield, Mich.—December 13, 2018—Automation continues to revolutionize the economy, but many thriving companies are not utilizing federal and state tax credits and incentives in the area of research and development that support Industry 4.0 adoption and growth, according to Clayton & McKervey, an international certified public accounting and business advisory firm located in metro Detroit. Sarah Russell, CPA, a Clayton & McKervey shareholder who advises clients on Research & Experimentation tax strategies, believes there has never been a better opportunity for businesses—including “smart” manufacturers—to explore and capitalize on these cash savings.

“Real-time data, combined with an understanding of the impact of tax credits and incentives, can often make a business more nimble and competitive,” Russell said. “The Research & Experimentation (R&E) tax credit, also known as the R&D tax credit, has given businesses a powerful tool to strategically improve their bottom line, but it is often overlooked or unclaimed—even with the new tax law.”

The R&E benefit is available for the development or improvement of products, processes, techniques, formulas, inventions or software and is a dollar-for-dollar credit against the taxpayer’s federal income tax liability, which means companies may get a twofold benefit—the deduction in the year the expenditure is paid, as well as by claiming the tax credit.

Tim Finerty, CPA, a Clayton & McKervey shareholder who addresses the needs of growth-driven businesses in the manufacturing, system integrator, distribution and service related industries, says that some of the best candidates for the R&E tax credit are companies that have business related to technology, industrial production and design, but also some machine shops, tool and die shops, and custom machine manufacturers.

“S-corporations, start-ups and partnerships in the business of improving industrial production processes through controls, automation or system integration should definitely consider the R&E tax credit,” Finerty said, “but many of these businesses are thinking about converting to a C-Corp structure under the new tax law.”

Before a change in structure, Finerty cautions that additional factors should be considered like whether the business qualifies for the pass-through deduction; if the business generates research credits; whether the business will pay dividends to its owners; and the long-term exit strategy of the business.

“The answer lies in the way the tax law is written,” Finerty said. “R&E credits generated by a business can be used to offset any income generated from that same business activity, so converting to a C-Corp may not be the best solution.”

Russell and Finerty outline examples of Qualified Research Activities (QRAs) under the R&E credit:
• Providing custom control and automation solutions for various applications
• Developing new functionality or performance to meet customer specifications
• Development of schematic drawings for integration of system components
• Designing and developing cost-effective and innovative operational processes
• Developing new tool-specific fixturing or other tooling
• Improving processes through robotics or other types of automation techniques
• Experimenting with new alloys or other materials
• Testing new mold/die designs through sampling or trial
• Providing product and system solutions, including design engineering and mechanical fabrication
• Performing evaluations and system test
• Implementation of automated systems

There may also be Qualified Research Expenditures (QREs) if companies can substantiate how the expenditures are connected to the qualified activities including:
• Qualified Wages of Employees performing qualified activities, supervising qualified activities and supporting qualified activities
• Supplies used to fabricate prototypes/items consumed during the conduct of research
• Contract Research–65 percent of fees paid to outside consultants/subcontractors/ engineers/software developers
• Estimates are allowed, however documentation of how the estimates were determined must be provided and reasonable methods must be used

Tax savings can be extensive; for example, one Clayton & McKervey client that designs, manufactures and installs purification systems tallied an approximate R&E tax credit of $1 million for 2014-17; another client who manufactures and installs integrated cleaning solutions for industrial applications will get a $475,000 in an R&E tax credit. Other examples of companies benfitting from the R&E tax credit are a designer and manufacturer of custom container and packaging products that saved almost a half-million dollars and a company that designs and builds custom conveyor systems that saved $1.4 million over three years.

“It’s definitely worth it for companies, especially those who have moved forward with an Industry 4.0 approach, to take a second look at its qualified research activites to make sure it’s receiving all the money it can,” Russell said.

About Clayton & McKervey
Clayton & McKervey is a full-service certified public accounting and business advisory firm helping closely held businesses compete in the global marketplace. The firm is headquartered in metro Detroit and services clients throughout the world. To learn more, visit claytonmckervey.com.

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Clayton & McKervey presents Brexit and Cross Border Opportunities at special lunch and learn event on Nov. 12 at Automation Alley

Southfield, Mich.—Oct. 22, 2018—Clayton & McKervey, an international certified public accounting and business advisory firm located in metro Detroit, announces a lunch and learn titled ‘Brexit and Cross Border Opportunities’ on November 12, 2018 from 11:30 a.m. to 1:30 p.m. at Automation Alley in Troy. The event is designed for business owners expanding globally, as well as economic developers looking for deeper insights on trade and related international topics.

For the event, Clayton & McKervey will be partnering with PrimeGlobal, one of the five
largest associations of independent accounting firms in the world, comprised of approximately 300 successful independent public accounting firms, including Clayton & McKervey, in more than 80 countries. Clayton & McKervey President Rob Dutkiewicz is member of the North America board of directors of PrimeGlobal. International accounting professionals Ulrich Britting, Owner of Best Audit, Germany, and Robert Lissauer, Director Taxation & International Advisory at Hall Chadwick, Australia, both members of Prime Global who are visiting the U.S., will discuss the changing environment for cross border trade, with special attention on their home countries.

Global business topics planned for discussion include:
• Brexit—not just a UK issue
• Global market conditions
• Free trade agreements
• China dynamic
• Impact of U.S. tax changes

There is no charge for the event, but pre-registration is required and can be completed through the Clayton & McKervey website. Automation Alley is located at 2675 Bellingham, Troy, MI 48083

About Clayton & McKervey
Clayton & McKervey is a full-service certified public accounting and business advisory firm helping closely held businesses compete in the global marketplace. The firm is headquartered in metro Detroit and services clients throughout the world. To learn more, visit claytonmckervey.com.

Clayton & McKervey shareholder appointed to Judson Center Board

Southfield, Mich.—Oct. 16, 2018—Clayton & McKervey, an international certified public accounting and business advisory firm located in metro Detroit, is pleased to announce that shareholder Kevin Johns has been appointed to the Board of Trustees of Judson Center, a community based human services center with locations in Genesee, Macomb, Oakland, Wayne and Washtenaw counties.

Judson Center’s mission is to provide expert, comprehensive services in Southeast Michigan that strengthen children, adults and families impacted by abuse and neglect, autism, developmental disabilities, and mental health challenges so they are successful in their communities. For more information about the Judson Center, visit the website.

“I am very excited to have Kevin Johns join Judson Center’s Board of Trustees,” Lenora Hardy-Foster, Judson Center President & CEO, said. “As a Trustee, Kevin will be working with the board members to oversee the governance of our organization as we continue to move our mission forward. With his experience and talents, he is a great addition to Judson Center and I, along with our entire Judson Center Board, look forward to working with him.”

At Clayton & McKervey, Johns specializes in maximizing U.S. and foreign tax credits and incentives, corporate federal and state tax planning, IRS and State of Michigan audit representation, individual tax planning, IC-DISC analysis, closely held corporate tax strategies and organizational structure for foreign entities

In addition to Judson Center, Johns is active in several other professional and civic groups. He is the Treasurer of the Canadian United States Business Association, a member of the Consulate General of Canada, a member of the MICPA Accounting for Tax Practitioners committee, a member of the American Institute of Certified Public Accountants, Chairman of the Board of Faith Baptist Church and President of the Board of Faith Christian School.

About Clayton & McKervey
Clayton & McKervey is a full-service certified public accounting and business advisory firm helping closely held businesses compete in the global marketplace. The firm is headquartered in metro Detroit and services clients throughout the world. To learn more, visit claytonmckervey.com.

Clayton & McKervey to present “Using Industry 4.0 to Improve Accounting Performance” on Oct. 17 as part of Automation Alley’s Tech Takeover series

Southfield, Mich.—September 24, 2018— Clayton & McKervey, a certified public accounting and business advisory firm helping closely held businesses compete in the global marketplace, will present “Using Industry 4.0 to Improve Accounting Performance” as part of Automation Alley’s ongoing Tech Takeover series sharing member expertise in various facets of Industry 4.0. The event will take place at Automation Alley on Wednesday, October 17 from 7:45 a.m. to 9:30 a.m., and the presenters are Sarah Russell CPA, and Tim Finerty CPA, shareholders and leaders of the firm’s systems integrators practice.

As automation continues to revolutionize the economy, there has never been a greater opportunity to understand and take advantage of various cash saving strategies. According to Russell and Finerty, many thriving companies are leaving money on the table by not utilizing federal and state tax credits and incentives in the area of research and development that support Industry 4.0 adoption and growth.

“Real-time data, combined with an understanding of the impact of tax credits and incentives, can often make a business more nimble and competitive,” Russell said. “Our presentation is geared to business owners, CFOs and controllers who want to learn how they can uncover savings within their own organizations to fund future research and development activities.”

For registration information, contact Automation Alley at 800-427-5100 or info@automationalley.com. Register online here.

About Clayton & McKervey
Clayton & McKervey is a full-service certified public accounting and business advisory firm helping closely held businesses compete in the global marketplace. The firm is headquartered in metro Detroit and services clients throughout the world. To learn more, visit claytonmckervey.com.
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Clayton & McKervey shareholder Tim Finerty named to Automation Alley’s Board of Directors

Clayton & McKervey, a certified public accounting and business advisory firm helping closely held businesses compete in the global marketplace, announces that Shareholder Tim Finerty has been named to the board of Automation Alley effective August 1. Automation Alley is Michigan’s Industry 4.0 knowledge center and the state’s leading nonprofit technology and manufacturing business association. Board members provide strategic insight, corporate governance and operational oversight to Executive Director and CEO Tom Kelly and serve a three-year term, twice eligible for renewal.

Long active in Automation Alley’s domestic and international initiatives, including annual trade missions to Mexico, Finerty will also remain as vice chair of Automation Alley’s International Business Services Advisory Council, a position he was appointed to in February. Clayton & McKervey is an original foundation member of Automation Alley and its shareholders and managers have been engaged with the organization since its inception in 1999.

Finerty is the leader for the Systems Integrators and Mexico practices at Clayton & McKervey, with specialization in Research & Experimentation tax credits and consulting on Mexican and Latin American tax and accounting issues. He also helps small and midsized growth-driven businesses achieve their goals.

In addition to his efforts with Automation Alley, Finerty is a founding board member of the newest chapter of the United States – Mexico Chamber of Commerce (USMCOC), the Great Lakes Chapter, based in Detroit, and is also involved with a variety of other professional organizations, including ProMexico, Michigan Manufacturing Association, Association for Advancing Automation, Robotics Industries Association, National Tooling & Machining Association, Controls Systems Integrators Association, and the Michigan Association of Certified Public Accountants, Manufacturing Task Force. He holds a Bachelor of Science degree in Accounting from Michigan State University.


About Automation Alley
Automation Alley is a nonprofit technology and manufacturing business association and Michigan’s Industry 4.0 knowledge center, with a global outlook and a regional focus. We connect industry, academia and government to fuel Michigan’s economy and accelerate innovation. We offer programs and services in business growth, entrepreneurship, talent development, defense and international business, providing resources and knowledge to help our members grow and prosper in the digital age.

About Clayton & McKervey
Clayton & McKervey is a full-service certified public accounting and business advisory firm helping closely held businesses compete in the global marketplace. The firm is headquartered in metro Detroit and services clients throughout the world. To learn more, visit claytonmckervey.com.

Clayton & McKervey promotes three to senior manager

Clayton & McKervey, a certified public accounting and business advisory firm helping closely held businesses compete in the global marketplace, announces that David Van Damme, Catherine (Katie) Faysal, and Ben Smith, all certified public accountants in the Assurance Department, have been promoted from Manager to Senior Manager.

Smith joined Clayton & McKervey in 2008 and is key to the firm’s transaction services team. He also leads the firm’s technology initiatives. Smith specializes in growth driven business tax planning and consultation, accounting support services including operational and owner reporter packages, financial statements and agreed upon procedures reporting. He is a member of the Association for Corporate Growth, the Michigan Association of Certified Public Accountants (MICPA) and the American Institute of Certified Public Accountants (AICPA). He also serves on Oakland University’s Accounting and Finance Advisory Board. Smith holds a Bachelor of Science in Accounting from Oakland University and is a resident of Royal Oak.

Van Damme also joined Clayton & McKervey in 2008. He specializes in audits of closely-held companies, internal controls analysis, fraud/data extraction analysis, financial statements and agreed upon procedures reporting, financial reporting automation and employee benefit plan audits. He is involved with the MICPA, MICPA Fraud Task Force, Turn Around Management Association and Risk Management Association. Van Damme holds a Bachelor of Science in Accounting from Oakland University and is a resident of Ferndale.

Faysal joined Clayton & McKervey in 2009 specializes in audits and reviews of closely-held companies, mergers and acquisitions, agreed upon procedures reporting, component audit reporting, AICPA Financial Framework for Small and Medium-Sized Entities and employee benefit plan audits. She is involved with the MICPA, AICPA, Turn Around Management Association and Risk Management Association and is a leader of Clayton & McKervey’s Women’s Network. Faysal holds a Bachelor of Arts in Accounting from Hillsdale College and is a resident of Novi.

The announcement of the senior manager promotions was made by Clayton & McKervey President Rob Dutkiewicz, CPA. “We are pleased to welcome Katie Faysal, David Van Damme and Ben Smith to their new roles as senior managers,” Dutkiewicz said. “They are impressive young leaders doing outstanding work for our clients.”


About Clayton & McKervey
Clayton & McKervey is a full-service certified public accounting and business advisory firm helping closely held businesses compete in the global marketplace. The firm is headquartered in metro Detroit and services clients throughout the world. To learn more, visit claytonmckervey.com.