Barry's Accounting Services, Corp.
1852 Flatbush Avenue - 2nd Floor
Brooklyn, New York 11210
(718) 677-4006
E-mail:
clembarry@aol.com
 
Client Update - quarterly newsletter
 
 

 

Building Material Suppliers

Tax accountant & Business Advisor
(Serving franchises and independent corporations)

Building material suppliers

Overview of industry specifics

Industry Course Work

  • Timberlands, Logging, Transportation & Milling
  • Hardware products & Steel manufacturing
  • Mergers & Acquisition (Rio Tinto & Alcan)
  • ISO Quality control standards
  • Overview of the Real Estate Market
  • Warehouse organization, operation & management
  • Sales forecasting and capacity planning
  • Inventory planning and loss prevention policies
  • Variety & Quality of niche products; and picking & packaging
  • Employees (laborers, equipment operators, clerks or inventory control personnel)
  • Insurance policies and Construction in coastal regions
  • Warehouse & Depot Health and Safety policies
  • Contractors’ accounts, Special orders & Retail sales
  • Budgeting & Cost Control
  • Order processing and Shipping & Receiving system
  • Depot / Warehouse Supervisors and Distribution & Logistic Managers
  • Coordinating warehouse activities with the following departments: Purchase, Marketing, Ordering, Credit approval policies, Sales, Distribution, Transportation and Billing & Collection policies.
  • Accounting, Sales tax (VAT), employment taxes & Corporation taxation

Economic activities and seasonal changes are the forces that shape the operation in this industry and inventory can change from J.I.T. to stockpiling.

A seasonal and climate change can shift the emphasis/orders from air conditioners, window screens, and garden hoses to heating units, storm doors/windows, ice smelters, snow blowers, and shovels.

A storm/hurricane weather forecast will present orders for significant quantities of plywood, nails, screws, electrical saws, hammers and screw guns before the storm arrives; and large orders/stockpiles of lumber, roofing materials, cement, steel products, paint products and electrical, carpentry, masonry and mechanical products and supplies when the storm has ceased/abated.

Some material suppliers carry a variety of 1,500 items in their inventory and they use the FIFO method of distribution. However, during the peak season or after a storm and demand is high and the warehouse is extremely busy employees may accidentally use the LIFO method of distribution. Hence, the company should determine in its policy whether inventory should be valued at cost, lower of cost or market, retail method, or other appropriate valuation method.

 

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