Manufacturing business refers to producing goods of value with the addition of Material, Labor and Overheads. On daily basis, a large number of finished products are produced by manufacturing firms from raw materials. The efficient flow of operations, from raw materials to finished products is important to meet customer demands and maximize profits.
By Implementing sound bookkeeping practices, a manufacturing company can optimize financial performance, decision-making, and safeguard from potential risks.
Manufacturers need to think beyond profit and loss to consider manufacturing costs such as the costs of materials, plus the cost to convert these materials. This helps in understanding the pricing of the product as well as achieving set profit margins.
❖ Cost Classification : Such as direct materials, direct labor, and manufacturing overhead
❖ Inventory valuation : FIFO, LIFO, Average cost
❖ Overhead allocation : Like Manufacturing / Administration/ Selling
❖ Work- In- Progress : Involves estimating the percentage of completion
❖ Variance analysis : To compare actual costs with standard or budgeted costs
❖ Fixed assets : Acquisition, depreciation, and disposal of fixed assets
From planning a purchase order for supplier to selling of final product we keep track of all financial transactions, such as income, expenditures, asset, and liabilities. You will also get help in monitoring inventory levels, tracking inventory valuation, and reconciliation.
We will guide you in managing your finance like a pro, so you can concentrate on producing outstanding products and make business decisions with more clarity. This approach facilitates better allocations of funds and closely monitor profit growth.
By using the latest software like NetSuite, QuickBooks, Xero etc. a manufacturing firm can make its accounting process more effective.
