Manufacturing Accounting That Drives Production Profitability
Expert financial management for manufacturers. Accurate job costing, real-time inventory tracking, and production insights that improve your bottom line.
Challenges We Solve
Understanding true costs and profitability by job, product, or customer
Our Solution: Comprehensive job costing system tracking materials, labor, overhead, and subcontractor costs with real-time profitability analysis
Impact: Identify profitable vs. unprofitable work and make data-driven pricing and production decisions
Accurate inventory valuation across raw materials, WIP, and finished goods
Our Solution: Perpetual inventory tracking with standard or actual costing methods, automated COGS calculation, and cycle count integration
Impact: Know your true inventory value and cost of sales at any moment
Controlling costs and identifying efficiency issues in production
Our Solution: Standard cost vs. actual cost variance tracking with detailed analysis of material, labor, and overhead variances
Impact: Quickly identify and address cost overruns and inefficiencies
Managing inventory and financials across multiple production facilities and warehouses
Our Solution: Inter-company transactions, transfer pricing, consolidated inventory tracking, and location-level P&L reporting
Impact: Full visibility across your entire operation with proper inter-entity accounting ---
How We Help Manufacturing Accounting Businesses
Job Costing System
Track costs and profitability for every job or production run
- ✓Real-time job profitability tracking
- ✓Material, labor, and overhead allocation
- ✓Subcontractor cost management
- ✓Job-level gross margin analysis
Inventory Management
Comprehensive tracking of raw materials, WIP, and finished goods
- ✓Perpetual inventory system
- ✓Multiple costing methods (FIFO, LIFO, weighted average, standard)
- ✓Cycle count integration
- ✓Inventory turn analysis
Production Cost Analysis
Understand and control your manufacturing costs
- ✓Standard vs. actual cost variance
- ✓Material yield and scrap tracking
- ✓Labor efficiency monitoring
- ✓Overhead absorption analysis
Manufacturing Financial Reports
Insights designed specifically for production operations
- ✓Cost of goods manufactured statements
- ✓Product line profitability
- ✓Customer profitability analysis
- ✓Production capacity and utilization reports
How We Helped Precision Metal Works
Custom Metal Fabrication
The Challenge
Growing custom fabrication shop with 45 employees struggling to track true job costs and profitability. Using basic QuickBooks without job costing led to unprofitable quotes and inability to identify which customers and job types were most profitable. Inventory counts were manual and often inaccurate.
Our Solution
Implemented advanced manufacturing accounting system with comprehensive job costing, integrated inventory management with barcode scanning, and established standard costs with variance analysis for all product lines.
Results Achieved
How It Works
System Setup & Integration
We integrate with your ERP, production tracking, and inventory systems to establish proper job costing and inventory accounting.
Standard Cost Development
Work with your team to establish standard costs for materials, labor, and overhead to enable variance analysis.
Real-Time Job Tracking
All production costs are captured in real-time with job-level profitability visible throughout the production cycle.
Monthly Financial Analysis
Detailed manufacturing reports including variance analysis, product profitability, and strategic cost reduction recommendations. ---
Frequently Asked Questions
Do you integrate with manufacturing ERPs?
Yes. We work with major manufacturing systems including SAP Business One, NetSuite, Epicor, IQMS, JobBOSS, E2 Shop System, and many others. We can also enhance QuickBooks with manufacturing-specific add-ons.
Can you handle complex costing methods?
Absolutely. We support all standard costing methods (FIFO, LIFO, weighted average, standard costing) and can implement activity-based costing (ABC) for manufacturers who need more sophisticated overhead allocation.
What about make-to-order vs. make-to-stock?
We handle both manufacturing models. For make-to-order, we provide job costing and project profitability. For make-to-stock, we track production runs, standard costs, and finished goods inventory with proper COGS allocation.
How do you track work-in-process (WIP)?
We implement WIP accounting that captures materials issued, labor applied, and overhead allocated to jobs in progress. You'll see the value of WIP at any time and can track jobs from start to completion with full cost visibility.
Can you support multi-entity manufacturing operations?
Yes. We specialize in complex structures including multiple production facilities, warehouses, and entities. We'll manage inter-company transactions, transfer pricing, and provide both consolidated and entity-level reporting. ---
Related Services
Bookkeeping Services
Expert bookkeeping services to keep your financial records organized, accurate, and up-to-date.
Financial Reporting & Analytics
Real-time financial reporting and analytics with technology-driven insights. Custom dashboards, P&L statements, cash flow analysis, and more.
Other Industries We Serve
E-commerce Accounting
Specialized accounting for online retailers managing multi-channel sales, inventory, and complex tax requirements.
Restaurant Accounting
Specialized accounting for restaurants, bars, cafes, and hospitality businesses with complex inventory and cash management needs.
Real Estate Accounting
Specialized accounting for real estate investors, property managers, and real estate professionals managing multiple properties and complex transactions.
Ready to Transform Your Manufacturing Accounting?
Schedule a free consultation to see how our specialized accounting services can help your business thrive.