Services for Maritime Companies
- Audit, Review, and Compilation of Financial Statements
- Agreed-Upon Procedures
- Employee Benefit Plan (401k) Audits
How We Can Assist with Current Maritime Accounting & Tax Issues
Accounting rules now present a five-step analysis in determining when and how revenue is recognized. The new model will require revenue recognition to depict the transfer of promised goods or services to customers in an amount that reflects the consideration a company expects to receive in exchange for those goods and services.
How to prepare: Briggs & Veselka is working with companies to advise them on the possible implications of these new accounting regulations and to help suggest possible revisions to corporate policies, borrowing base calculations, financial coverage ratios, and contract structures. Contact Jamie Sylvester at firstname.lastname@example.org for more details.
New Lease Accounting Regulations
No longer will there be operating and capital leases. New accounting rules will now require all leases to be reflected as a company asset as well as an offsetting liability on your balance sheet. This will primarily have an impact on borrowing base calculations and lending capabilities. For companies with many lease arrangements, it may also create a staffing burden to manage the required supporting documentation.
How to prepare: Briggs & Veselka is already working with companies (and their lenders) to advise them on the possible implications of these new accounting regulations and to help prepare possible revisions to existing covenants or suggest potential modifications to future loan agreements. Contact Jamie Sylvester at email@example.com for more details
State & Local Tax
States, counties, and parishes often have complex and varying statutes about tax liabilities, which could have impact on local operations and your federal return.
How to prepare: Our maritime practice is attuned to the various taxing regimes along the Gulf Coast and can help companies plan appropriately as operations expand beyond their original nexus. Pre-planning is an effective way to assure the right tax structures to result in only the fair share of taxes being paid. Contact Jason Sanders at firstname.lastname@example.org for more details.
Special Vessel Registration Benefits for Maritime Operations
Depending on where ships are flagged (US or foreign), regulatory benefits are triggered, including more favorable tax treatments.
How to prepare: Briggs & Veselka tax and audit professionals can advise shipping companies by providing a side-by-side comparison of operations, reporting, accounting, and tax implications of where ships are flagged, allowing management to make more informed decisions. Contact Jamie Sylvester at email@example.com for more details.
The maritime industry has very specific depreciation schedules with direct impact on tax liabilities. Depending on the asset class (transportation barges, for example, are classified differently than offshore drilling barges), the depreciation schedules might change even under the standard method of depreciating assets known as the Modified Accelerated Cost Recovery System (MACRS).
How to prepare: Briggs & Veselka maritime professionals can complete an independent assessment of your fleet and its current tax depreciation schedules and calculate potential tax savings imbedded within your current depreciation structure. Contact Jamie Sylvester at firstname.lastname@example.org for more details.
Recovery from Vendors
Oftentimes actual contract delivery and performance varies from the terms of a supplier contract, causing hidden losses. Few shipping or related companies even attempt to reconcile contract non-delivery or underperformance.
How to prepare: Briggs & Veselka professionals can perform audits of actual vs. contracted performance and, depending on the terms of the contract, find cash recoveries for your company. We can proactively examine current contract structures from a performance standpoint to advise you on how to create opportunities for recovery in future contracts. Contact Adam Dimmick at email@example.com for more details.
“We rely on Briggs & Veselka for business advice. We don’t make a move to buy new equipment until we talk to them. When it’s a $4 million investment in a barge, Briggs knows the questions to ask us. They’re very candid with us, and that’s what we pay them for.”
–Pat Studdert, President
Buffalo Marine, client since the 1980s