Vandayam's Manufacturing Accounting Gives You Clearer Cost & Profit Visibility

Question 1

What is manufacturing accounting?

Answer

Manufacturing accounting involves tracking the costs associated with producing goods, including raw materials, direct labor, manufacturing overhead, work-in-process (WIP), finished goods, and Cost of Goods Sold (COGS). Accurate manufacturing accounting helps businesses understand their true product costs and profitability.

Question 2

Do you provide bookkeeping and accounting services for manufacturing

Answer

Yes. We provide specialized manufacturing bookkeeping and accounting services for businesses that manufacture, assemble, or produce products. We help track production costs, inventory, COGS, WIP, finished goods, and other manufacturing-related financial activity.

Question 3

Can you track the cost of each product?

Answer

Yes. We can structure the accounting process to track the costs associated with individual products or product categories, including raw materials, direct labor, manufacturing overhead, and other applicable production costs.

Question 4

How do you track manufacturing inventory?

Answer

We help maintain accurate records for different stages of inventory, including raw materials, work-in-process (WIP), and finished goods. We also reconcile inventory records with the accounting records to identify and address discrepancies.

Question 5

Can you track Work-in-Process (WIP) inventory?

Answer

Yes. We can help track costs associated with products that are still in the production process. This may include raw materials, labor, and applicable manufacturing overhead accumulated in WIP before products are completed.

Question 6

How do you calculate Cost of Goods Sold (COGS) for a manufacturing business?

Answer

COGS depends on the company's inventory records, production costs, completed goods, and established accounting methodology. We work with your company's existing accounting policies and costing process to ensure COGS is recorded consistently and accurately in the financial statements.

Question 7

Which inventory costing methods do you use?

Answer

We use the costing method established by the company and its accounting policies, as appropriate for the business and its reporting requirements. Depending on the company's setup, this may involve methods such as FIFO, weighted average cost, or standard costing. We maintain consistency with the company's established methodology and coordinate with the CPA or management when accounting treatment needs to be confirmed.

Question 8

Can you allocate manufacturing overhead to products?

Answer

Yes. Where required, we can help track and allocate applicable indirect manufacturing costs and overhead to the appropriate products, production activities, projects, or cost centers based on the company's established costing methodology.

Question 9

Can you track direct labor and production costs?

Answer

Yes. We can help classify and track direct labor, materials, contractor costs, and other production-related expenses and allocate them appropriately based on your company's costing policies and reporting requirements.

Question 10

Can you track profitability by product?

Answer

Yes. Where the accounting system and available data support it, we can organize revenue and production costs to provide product-level profitability reporting. This can help management identify which products generate stronger margins and where production costs may need attention.

Question 11

Can you track manufacturing costs by project?

Answer

Yes. If your manufacturing business operates on a project or custom-order basis, we can implement project-wise tracking for revenue, materials, labor, inventory, overhead, and other applicable costs to help determine the profitability of each project.

Question 12

Can you reconcile inventory with the general ledger?

Answer

Yes. We perform inventory reconciliations to compare inventory records with the general ledger and investigate differences such as missing transactions, incorrect classifications, timing differences, or other discrepancies.

Question 13

Can you help identify inventory discrepancies?

Answer

Yes. As part of the reconciliation process, we can identify differences between inventory records and accounting records and provide a report of items that require investigation or correction.

Question 14

Do you account for raw materials, WIP, and finished goods separately?

Answer

Yes. Where applicable, we can maintain appropriate accounting records for raw materials, work-in-process, and finished goods so management has better visibility into inventory at each stage of the manufacturing process.

Question 15

Can you handle manufacturing businesses with multiple products?

Answer

Yes. We can structure the accounting and reporting process to accommodate multiple products, product categories, production lines, projects, or locations, depending on the company's requirements and accounting system.

Question 16

Can you help with month-end manufacturing accounting?

Answer

Yes. Our month-end process can include bank and credit card reconciliations, inventory reconciliation, WIP review, COGS review, accruals, prepaid expenses, account reconciliations, and financial statement preparation, depending on the company's requirements.

Question 17

Can you work with our existing costing policies?

Answer

Yes. We work with your company's existing costing policies, procedures, and reporting requirements to ensure costs are recorded and allocated consistently. We can also coordinate with management and your CPA when specific accounting treatment or policy decisions require professional review.

Question 18

Can you integrate manufacturing accounting with our existing accounting system?

Answer

Yes. We can work within your existing accounting and financial reporting environment and organize the bookkeeping process around the information available from your inventory, production, ERP, or accounting systems.

Question 19

Can you provide manufacturing financial reports?

Answer

Yes. We can provide financial and management reports that help you understand product costs, inventory balances, COGS, gross margins, production expenses, project profitability, and overall business performance.

Question 20

Can you clean up existing manufacturing books?

Answer

Yes. We can review existing accounting records and help identify issues such as incorrect inventory balances, unreconciled accounts, misclassified production costs, incorrect COGS entries, duplicate transactions, and other bookkeeping discrepancies.

Question 21

Can you work with our CPA or tax professional?

Answer

Absolutely. We can work alongside your CPA, tax preparer, controller, or management team to maintain organized accounting records and provide the financial information needed for tax preparation, financial reporting, and management decisions.

Question 22

Why should I use a specialized manufacturing bookkeeper?

Answer

Manufacturing businesses have significantly more complex cost and inventory requirements than many service-based businesses. Simply recording purchases and sales does not provide an accurate picture of manufacturing profitability.

Accounting & Financial Services

Bookkeeping

Payroll

Income Tax

Sales Tax

1099s

CFO Services

Not sure which service is right for you?

Accounting & Financial Services

Bookkeeping

Payroll

Income Tax

Sales Tax

1099s

CFO Services

Not sure which service is right for you?

Vandayam's Manufacturing Accounting Gives You Clearer Cost & Profit Visibility

Accounting Built Around Your Production Process

From Raw Material to Real Results

Our Manufacturing Accounting Services Include

Products Costing

Inventory Tracking

Cost of Goods Sold

Costing Methods

Production Cost Allocation

Project-Wise Tracking

Inventory Reconciliation

Financial Reporting

Accurate Costing. Better Visibility. Stronger Decisions.

Know Your Costs

See Your Margins

Make Better Decisions

Get Clearer Visibility Into Your Manufacturing Costs

Manufacturing Accounting FAQs