Accounting and bookkeeping for manufacturers

What manufacturers need from accounting and bookkeeping

• Inventory valuation across raw materials, work in progress and finished goods
• Standard or actual costing with overhead absorption into product costs
• Fixed asset register for plant, machinery and tooling with depreciation schedules
• Multi-currency purchases and sales with foreign exchange gains and losses recorded
• Variance reporting between expected and actual production costs
• Support for audits, since manufacturers often exceed the thresholds for audit exemption

Questions to ask a provider

1. What costing methods have you used for manufacturing clients?
2. How do you value work in progress at month end?
3. Have you worked with our ERP or production planning system?
4. How do you support the external audit, including stock count observation?

Pitfalls to avoid

• Expensing raw materials on purchase makes margins swing with buying patterns rather than production
• Overheads left out of product costs make products look more profitable than they are
• A provider without audit experience can leave schedules incomplete and extend the audit

More on accounting and bookkeeping

Our guide to finding a accounting and bookkeeping provider in Singapore covers typical costs, rules and how matching works.