FirmKey’s network partners are experts in manufacturing accounting, providing tailored solutions to meet the unique needs of manufacturing companies. Whether it’s cost accounting for manufacturing, manufacturing costing, or implementing manufacturing accounting software, FirmKey’s network has the expertise to support manufacturing operations of all sizes. Our network also has deep experience working with wholesalers and distributors, and provides accounting, audit and other financial advice to integrated manufacturers and distributors.
Comprehensive Manufacturing Accounting Services
FirmKey’s network partners offer a full range of manufacturing accounting services, including:
- Cost accounting for manufacturing: Ensuring accurate tracking of direct costs, indirect costs, and manufacturing overhead to improve financial visibility and profitability.
- Manufacturing costing: Implementing customized product costing and production costing systems to track costs effectively.
- Inventory valuation: Providing accurate inventory valuation methods such as FIFO, LIFO, and weighted average cost to ensure accurate financial reporting.
- Manufacturing accounting software: Setting up and optimizing ERP systems for streamlined manufacturing financial management.
- Cost of goods manufactured (COGM) and cost of goods sold (COGS): Calculating and reporting on these essential metrics for better decision-making.
- Product costing and production costing: Applying activity-based costing (ABC), process costing, and job order costing techniques.
- Inventory management: Implementing real-time inventory tracking and SKU audits for improved efficiency.
- Depreciation methods: Utilizing straight-line, declining balance, and sum-of-the-years’ depreciation to account for asset value.
- Audit & Compliance: Audits, audit readiness, financial statement review.
How FirmKey’s Network Supports Manufacturing Companies
FirmKey’s network partners provide manufacturing accounting solutions through services such as:
- Fractional CFO & controller services: Cash flow forecasting, investor reporting, M&A strategy, capital raise support.
- Outsourced accounting & bookkeeping: Monthly close, bank reconciliations, AP/AR processing, balance sheet tie-outs.
- Tax strategy & compliance: Business tax returns, S-Corp election, tax planning and strategy.
- Audit & ERP implementation: Audit readiness, ERP implementation and optimization.
- Fundraising & strategic advisory: Financial modeling, investor targeting, outreach support.
FirmKey’s accounting experts offer flexible relationships, and allow businesses to engage experts on a fractional, project-based, or outsourced basis.
The Benefits of Hiring an Outsourced CFO
Hiring an outsourced CFO from FirmKey’s network can provide your business with valuable advisory services that enhance financial decision-making and long-term growth. These experts bring deep financial knowledge and strategic insight without the commitment of a full-time executive.
Specialized Financial Reporting Services
FirmKey’s network partners deliver tailored financial reporting solutions, including budgeting, forecasting, and investor-ready financial statements designed to enhance strategic decision-making.
Effective Cost Analysis and Control
Accurate cost analysis and control are essential for profitability. Experts in FirmKey’s network provide advisory services to ensure comprehensive data collection, categorization, and reporting, allowing businesses to make informed decisions about their financial health.
Optimizing Inventory Management Systems
Achieving efficiency in inventory tracking and valuation requires expertise. FirmKey’s network partners implement real-time tracking systems, conduct SKU audits, and enhance inventory processes to ensure accurate financial reporting.
Streamlined ERP Implementation and Integration
Implementing ERP systems is critical for improving financial visibility and reporting. FirmKey’s network partners provide advisory services to optimize ERP systems, ensuring efficient and accurate financial management.
Improving Cash Flow Forecasting and Management
Developing accurate cash flow forecasts is crucial for maintaining financial stability and supporting growth. FirmKey’s network partners provide insights and advisory services to enhance forecasting processes and optimize cash flow management.
Implementing Activity-Based Costing Systems
Activity-based costing systems provide valuable insights into production costs and profitability. FirmKey’s network partners offer advisory services to implement and optimize ABC systems for improved decision-making.
Manufacturing Accounting 101: Key Concepts and Best Practices
Manufacturing accounting involves tracking and managing all costs associated with production, including direct costs, indirect costs, and overhead. Effective manufacturing accounting systems are essential for accurately calculating the cost of goods manufactured (COGM) and cost of goods sold (COGS).
Key Concepts:
- Direct costs vs. indirect costs: Understanding which costs directly contribute to manufacturing and which are considered overhead.
- Inventory valuation methods: FIFO, LIFO, and weighted average cost.
- Production costing methods: Activity-based costing (ABC), process costing, and job order costing.
- Depreciation methods: Straight-line, declining balance, and sum-of-the-years’ depreciation.
Best Practices:
- Implementing real-time inventory tracking.
- Accurately allocating indirect costs.
- Streamlining production processes to improve efficiency.
- Adopting advanced manufacturing accounting software for real-time insights.
How To Improve Your Accounting Systems
Improving businesses accounting systems requires implementing efficient processes and utilizing the right tools. FirmKey’s network partners can help by:
- Reviewing and enhancing existing manufacturing accounting systems.
- Implementing ERP systems for manufacturing financial management.
- Improving inventory management and COGS tracking processes.
- Providing guidance on accurate cost allocation and reporting.
Contact FirmKey’s Manufacturing Accounting Experts
Ready to enhance your manufacturing company’s accounting processes? Contact FirmKey to be connected with experienced professionals who understand the unique needs of manufacturing companies.