GS Inc. Industries

Agriculture
It is critical for advisors to comprehend the many aspects of
farming and the nuances related to its business cycles. Selected services include:
Gumbiner Savett has spent the past 25 years not only working
with farmers, but studying their practice and advising them. Over  Tax preparation and
that time period, we have grown to understand farming and what planning
farmers do, enabling us to become one of the only firms in  Audit, financial reporting
Southern California that specializes in agriculture. and consulting
 Cash flow analysis
Agriculture is one of our country’s backbone industries. It is a  Pricing and cost structure
complex world of evolving regulations and often unpredictable analysis
market conditions. Agriculture professionals are tasked with  Industry benchmarking to
many difficult questions: What do you need to pre-buy for the aid in the understanding of
growing seasons? What are the tax advantages of timing crops production and overhead
and delivery schedules? What does a year-end plan require? costs
What type of cash flow is necessary in order to maintain strong  Assistance with obtaining
bank support? financing and financing
strategies
Our staff of advisors is entrenched in every sector of agriculture,
including field crops, orchards, nurseries, food processing,
ag-service, family-owned- and- managed farms and wineries.

Whether it is agriculture or any other business, we know clients
do not like surprises. Because success in agriculture is very
dependent on planning, Gumbiner Savett specializes in just the
sort of mapping ahead that farmers depend on.

Gumbiner Savett Inc. 1723 Cloverfield Boulevard Santa Monica, California 90404 | P | 800.989.9798 | F | 310.829.7853 | www.gscpa.com
AICPA | PCAOB | CalCPA | Independent Member of B K R International

Apparel & Textile Our Services Include:
With decades of apparel and textile experience, Gumbiner Savett • Assistance in conversions or
understands this fast-paced world and knows how to help clients implementation of industry
successfully maneuver through each fashion season. and accounting software
Taking a product to market requires careful planning of the design, • Assistance in finding
production and sales processes. Should production occur locally or business partners to fill
be imported? How much inventory should be produced? Are prices in critical roles and/or staff in
line with demand? With more than 70 years combined experience in production or accounting
the industry, our team works with all aspects of the apparel sales • Collections of chargebacks
cycle – design, manufacturing and distribution. and better chargeback
monitoring to negotiate with
Whether you’re an established apparel company or unveiling your customers
first line, we bring vast industry perspective and growth-oriented • Cost controls and analysis to
solutions to our clients. We help companies plan several seasons improve gross profits
ahead to ensure that they meet their overall business goals. We will
also work with other industry professionals to get our clients the • Due diligence support in
expertise they need in legal, financing, insurance, employee benefits, purchases or sales of
restructuring or other areas. companies or divisions
• ESOP (Employee Stock
We entrench ourselves in our clients’ worlds and gain a deep Ownership Plan) analysis
understanding of their short-term and long-term goals. We support and implementation
our clients through our services:
• Forecasts and projections to
highlight cash flow needs
 Accounting, audit and tax services: our accounting, audit and tax and potential shortfalls
services ensure that your creativity is supported – not hampered – by • Obtaining financing to
sound tax planning and compliance. produce orders, receivables,
 Business plans, projections and forecasts: through our industry finance equipment and
expertise and projections and forecasts, we develop business plans, inventory
budgets and cash-flow plans that support growth.
• Tax savings through
 Assistance with obtaining financing: our longtime connections with
domestic production
factors and industry banks and lenders helps obtain critical financing for
activities deductions,
growth, purchase orders, inventory and receivables.
research & development,
 Pricing and cost structures: we conduct chargeback and gross profit
and enterprise zone credits
analyses to develop pricing and cost structures geared toward
maximizing revenues. • Tax structures in sales of
 Inventory and production: expert inventory and production planning companies to maximize
helps you meet market demand without surpluses. returns to owners
 Industry benchmarking: industry benchmarking that helps you know if
your sales, production and overhead costs are in line with others in the
marketplace
 Incentive plans and employee benefits: as you grow, we will even help
you develop salary structures, employee benefits and incentive programs
that promote a stable, talented staff.


Construction
Our services include:
Our founder lectured on construction accounting at UCLA
when he started the firm in Los Angeles 60 years ago. Since  Lender and Client-Trusted
that time, Gumbiner Savett has provided the construction Assurance Services:
industry with excellent accounting, tax and business advice including audits, reviews and
and planning. compilations of financial
statements that support
We’ve been entrenched in the industry during the biggest accurate bidding, financial
building booms and virtual standstills in development. planning and decision making.
Throughout the years, our industry clients – middle-market  Tax Planning and
contractors in public works construction and sub-contractors Compliance: our holistic
in almost every field -- have trusted us to bring clarity to the approach to taxes means that
inexact science of budgeting and planning based on year-end corporate partnership
estimates. and individual filings are
merely the delivery method of
It’s never been more challenging to manage a construction strategies we’ve helped you
company or invest in large construction projects. As builders implement throughout the year.
have fought to survive the recent economic downturn, they’ve  BFO Audits: using audits of
learned the value of sound financial advice and established construction-cost certification
relationships with clients, banks and investors. and burden, fringe and
overhead costs (BFO), we give
our clients a competitive
advantage when bidding
complex projects.
 Fraud Prevention: our fraud
prevention expertise produces
internal controls that save
millions.
 Litigation Support: Through
litigation support, expert
witness testimony and reports,
mediation and arbitration,
forensic accounting and
damage calculations, we help
reduce or eliminate
unexpected legal and financial
liabilities


Media and Entertainment
Southern California is one of the major hubs for the Selected Services Include:
entertainment industry. Whether you are part of the film,  Accounting services —
television, music or interactive entertainment sectors, Preparation of financial
Gumbiner Savett’s experience in this area gives us the ability statements for investors,
to provide a high-level of service not found in firms our size. amortization of film costs,
revenue recognition and royalty
Our entertainment focused partners each have over 20 years and licensing audits — we work
of entertainment experience with both large and independent with royalty payers/recipients
companies as well as individuals. Our partners also have and licensees/licensors
experience with public company reporting, including IPOs
and reverse mergers.  Tax — Formation structure, tax
planning & compliance,
Our entertainment industry relationships include production consulting, R&D credit, film &
companies, distributors, film funds, film and television TV tax credits and incentives,
studios, post production houses, record labels, and game film amortization
developers, as well as agents, lawyers, artists, musicians,
actors, producers, directors, artist managers, screenwriters  Consulting — Strategic
and authors. planning and forecasts, cash
flow projections, financial
As economic and competitive forces have pushed the analyses, production location
industry’s evolution, we have played a key role in the success tax advantages
of our clients’ projects. How do you use tax credits and
incentive programs to reduce production and tax costs? How  Special Reports — Investor
should you structure a film production with tax savings in relations and reporting; agreed
mind? What are the accounting ramifications of a three- upon procedures
picture deal? How are project costs accounted for and
amortized? These are questions that we assist our clients  Financial Statements —
with on a regular basis. Audits, reviews and
compilations
As an example of our work, from its inception, we have
worked with an independent film fund providing a full breadth
of services in audit and tax, including advising fund
management in the creation of its formation documents. We
have worked with the fund to test sales and marketing
scenarios to insure distribution projections are correct and we
have also assisted in the education of investors who are
“new” to film investing. As the fund has grown and
expanded, our team was called in to advise them about
animation production overseas. As the fund has continued to
have more complicated needs, the GS team has stayed in
step with them and provided the hands-on approach they
require.


Employee Benefit Plan Audits
Selected Services Include:
Employee benefit plan auditing is a necessity to many
companies due to regulatory requirements of the Department
of Labor. Most companies with over 100 participants in their  Audits of defined benefit
benefit plan are required to have their plan audited by an and defined contribution
independent auditor who is familiar with the process. At employee benefit plans
Gumbiner Savett, we understand the variety of plans that are
available to organizations and therefore are able to apply our  Preparation of Form 5500
knowledge to an efficient audit.

We have experience auditing both small and mid-sized plans  Consultation regarding
with investments in the millions. With a well-trained staff, we types of plans, tax
create a tailored audit based on our client’s compliance needs, benefits, and other matters
while following US GAAS (Generally Accepted Auditing
Standards).

GS team members work with plan administrators to make sure
they are meeting deadlines and in compliance with the
requirements of various regulatory agencies such as the
Internal Revenue Service, Department of Labor, and the
Pension Benefit Guaranty Corporation.

We are a member of
the AICPA's
Employee Benefit Plan Audit Quality Center (EBPAQC).
Members are required to maintain the highest level of audit
quality and training, which is of importance to our clients and
their plan administrators.


Food & Wine
Selected Services Include:
Gumbiner Savett not only understands the financial needs of our
food and wine clients, we share their passion for the industry. Our  Accounting, bookkeeping &
team of financial and state and local tax experts includes food and business management
wine enthusiasts with deep roots in the industry. Our clients – with
 Financing support
assets ranging from $3 million to $1 billion – know they’re working
with one of their own.  Tax strategies, return
preparation, and audits
Whether you’ve been open for decades or planning your grand  Inventory and purchasing
opening, we provide expert guidance throughout the lifetime of controls & theft prevention
your business. How does one establish credit with a lender? When  Profitability analysis and
should a company downsize or expand? How can one take
advantage of a turbulent tax and financial environment? We share enhancement
the concerns of our clients and help them manage assets,  Revenue cycle assessments
operations and workforce to ensure successful long-term  Wine list and menu design and
profitability. pricing

Our passion for gourmet cuisine and fine wine runs much deeper
than the bottom line. We also lend our expertise – as well as our
palettes – to help you set menus and build wine lists. Ours is a
holistic approach that delivers a unique breadth of services:

Client Success Stories:

Increased Profits from Wine Sales: We conduct periodic reviews
of the wine list of a major restaurant client for whom wine
represents a significant profit center. We review for both content
and pricing and give our recommendations regarding types and
brands of wines to offer in the various price point groups.

Within the last 12 months, we noticed severe under-pricing with
respect to many higher-end wines on the list. After researching
current market prices, we recommended price increases to market
or just below market on most of these higher end wines. The client
was concerned that the increases would slow down its sales of
these wines. This did not happen. Instead, the client continues to
sell these wines at the same rate as in the past, with the result that
profits from sales of these wines increased by factors of between
25% and 50%.


Tax Credit for Employer’s Share of Social Security & Medicare
Taxes Paid on Employee’s Tip Income: We recently took over
the annual tax return preparation responsibility for an established
restaurant client. Upon reviewing the prior preparer’s work papers
and returns, we realized that the tax credits (the
restaurant/taxpayer gives up related expense deductions in
exchange for tax credits that are dollar for dollar tax savings) for
the Employer’s share of Social Security and Medicare taxes paid
on Employees’ tip income had not been claimed. We corrected the
previously incorrect filings and passed through credits to the
owners in excess of $30,000 annually for the open tax years.


Franchising Selected services include:
With the many requirements California franchisers must  Auditing and accounting
adhere to, our Gumbiner Savett specialists understand the
nuances of tax structuring, financial statement audits and  Business and personal tax
royalty auditing for franchisors. Our clients —franchisors in planning and compliance
food service and other sectors— seek out our specialists
 Royalty audits
to provide them with tailored franchise audit, tax and
consulting support.  Internal control consultation
 Fraud prevention and detection
We assist our clients in building a strong relationship with
franchisees and educating them about the importance of  Financial reporting and
transparency in the field. We help our clients add value to benchmarking
their bottom line by assisting them in obtaining financing,
adhering to their reporting requirements and minimizing  Advisory consulting services.
taxes.


Manufacturing
Our Services Include:
Manufacturing has been a core industry for Gumbiner
Savett since our company’s inception. The middle market  Accounting system reviews
companies that comprise the manufacturing arena are vital
to this region, and as result, our services to this sector is an  Assistance with obtaining
important and significant part of our business. financing
 Business plans, projections and
Gumbiner Savett provides traditional accounting services to forecasts
the industry such as audits, reviews, compilations and tax  Cash flow management and
compliance and planning. Due to our depth of knowledge in
budgeting
this industry, we also have experience with several
business advisory services.  Evaluation of international
opportunities
Our specialists are well-versed with the accounting  Fraud reviews
standards relating to manufacturing companies and  Gross profit analysis and
understand the types of needs that develop for businesses reconciliations
in this industry. We provide services to a broad range of
manufacturing sectors, including:  Incentive plans and employee
benefits
 Aerospace and  Foundries  Industry benchmarking
aircraft  Large equipment  Internal financial controls
 Apparel and textiles  Research instruments  Inventory and production
 Consumer products  Toys controls
 Dairy and food
 Lean manufacturing consulting
products
 Vendor-managed inventory
control
Client Success Stories Include:

Accounting System Review: Our client had suffered
sales declines which greatly affected earnings. The client
asked GS to review the accounting office operations to
see where they could gain efficiencies without adversely
impacting internal controls. GS interviewed all accounting
staff, as well as others throughout the organization and
documented the system in a narrative and a flowchart.
From this documentation we critically reviewed the
processes and found certain inefficiencies that were
communicated to management. Examples of more
efficient operations included the use of time keeping
systems, eliminating many paper files and processes that
were no longer adding value. We also determined that
certain functions in various departments could be
consolidated. As a result our client was able to positively


impact their bottom line and the internal functions became
much more efficient.

Lean manufacturing techniques: GS had a client that
needed advice regarding lean manufacturing. We
explained that the goal was to reduce inventory and lead
times which ultimately increased profits.

GS researched their production cycle, in order to increase
the speed of their product manufacturing. We identified
the bottlenecks in the system and provided solutions to
increase the flow of production. As an example, we
identified a bottleneck in the machine set-up and change
time. The client was able to use resources from a division
with more capacity to assist in the process, ultimately
saving time and using resources that already existed.

Foreign operations: A clients acquired a large European
manufacturing operation several years ago. At a
minimum, these foreign operations would need to be
disclosed on the Company’s tax return. The simplistic
approach would have been to only report the information
on the tax return. However, GS analyzed the data and
through inquiry and research determined that the foreign
entities’ income should be reported on the domestic tax
return. The additional income tax associated with the
foreign operations would substantially be offset with a
foreign tax credit. The Company would increase its basis
in the foreign company each year by the income that was
reported. When the foreign operations are eventually sold,
the capital gain would be much lower under the approach
suggested by the GS tax specialists, compared to the
more simplistic approach.


Real Estate Our Services Include:
At a time when ongoing market volatility is forcing the entire  Audits, accounting and
real estate industry – developers, builders, designers, buyers, special reports: We provide
sellers, investors – to think differently, sound financial and audit services and produce a
business advice is essential. variety of financial statements
and reports for every type of
Gumbiner Savett has been providing the industry with trusted real estate endeavor to help
accounting, tax and business information and planning, since you understand profit potential
our inception. We know that the current slowdown not only and risks.
requires prudent business practices that guarantee financial
 Tax Services: Our tax services
survival, but creates an opportunity to design and implement
ensure that your future plans
strategies that prepare for the future.
are supported – not hampered
– by sound tax planning and
Our clients include a wide variety of public, private and
compliance including: state and
institutional real estate companies, including real estate
local, private REITs and tax
private equity and pension funds, residential, commercial,
deferred exchanges among
industrial, hotel and resort owners and operators, all of whom
others.
are looking to the future.
 Pension fund services: We
work with several funds and
How did demographics shift during the recession? How do
have specific knowledge of the
we aggressively seek profits while maintaining a financial
industry standards of
safety net? How do we reduce operating costs? Where is the
accounting governed by
industry headed and how do we stay ahead of the trends?
NCREIF.
The current real estate market will change and Gumbiner  Budgets and projections:
Savett will continue to help our clients design and implement Through industry expertise and
business and tax strategies that will help them thrive not only projections, we develop
next month, but next year, next decade and beyond. business plans, budgets and
cash-flow plans that support
growth.
 Litigation support: Through
litigation support – expert
witness testimony and reports,
mediation and arbitration,
forensic accounting and
damage calculations – we
reduce or eliminate unexpected
legal and financial liabilities.
 Internal Controls: We
implement a wide variety of
internal controls to further
reduce risk, cut costs and
eliminate duplication of work.


Technology Selected Services Include:
In the ever-changing field of technology, our clients rely on  Auditing, accounting and
Gumbiner Savett to keep them abreast of the current review services
accounting and financial demands of the tech industry. We
serve a diverse group of technology clients, including  Tax structuring, planning and
software/hardware development, technology management compliance
& consulting, telecommunications & broadband,
 Due diligence for acquisitions
nanotechnology, Internet and online media.
and roll-up strategies
As a full service firm with international capabilities and  Preparation of income tax
affiliations (See BKR International) we are able to work with provisions
companies of all sizes in varying stages of growth and
 R&D Credit consulting
maturity. We assist our clients ─ private companies, owner
operators, publicly held and venture backed ─ with the  Corporate and sales tax
concerns that impact their day-to-day operations. What nexus issues
does my financial health need to be for growth? What are
the latest software revenue recognition rules? Is my stock  Recapitalizations or private
based compensation effective? How can I maximize my equity transactions
tax R&D credits?  Financial forecasts and
budgets
Additionally, we are well-versed in the very specific
software compliance of Statistical Process Control (SPC)  Employee stock options and
for our manufacturing clients. other benefit plans
 Advice and support of
business and strategic plans
 Exit and succession strategy
planning
 Consulting on financing
opportunities including
introductions to investment
bankers and lenders
 Assistance with the
preparation of compliance
manuals


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