Raw materials, work in progress, finished goods. Manufacturing books have a lot of moving parts. Here's how I keep them straight.
Manufacturers deal with accounting most small businesses never see. Money gets tied up in materials, sits on the shop floor as work in progress, then turns into finished goods waiting to ship. If your books don't track that flow, your profit numbers are a guess.
With 30 years of accounting experience, I set up your books for how a manufacturing business actually works, then keep them clean and easy to understand.
And what I take care of for you.
Tracking raw materials, work in progress and finished goods so your cost of goods sold is real, not estimated.
Knowing what each product or job actually costs to make, including materials, labor and overhead.
Spreading rent, utilities and indirect labor across production so your margins tell the truth.
Recording machinery purchases, loans and depreciation correctly.
Keeping supplier payables organized and matched to what you received.
Seeing which products make money and which ones are quietly losing it.
Other industries I work with:
Send Michele a quick note. Tell her what's going on and she'll tell you how she can help. No judgment about the shoebox.