Accounting Archives - Blog for Manufacturers and Distributors

Work in Process Inventory – What Is WIP and How To Calculate it?

We have all seen manufacturing depicted in cartoons. Basic resources are rolled into a factory, followed by loud noises and a smoking chimney. Then, shiny finished products emerge on the other side. In reality, manufacturing is a bit more complex. On their journey toward becoming final products, raw materials go through work in process inventory. […]

By Mattias Turovski 12 min read

AccountingManufacturing TipsSalesSupply Chain

What Are Backorders? Meaning, Causes, and Tips

For manufacturers and distributors alike, backorders constitute a reliable means of keeping up sales even after goods have gone out of stock. In this article, we look at the meaning and causes of backorders and weigh their pros and cons.

By Mattias Turovski 11 min read

Accounting

Cost of Goods Sold in Manufacturing – How to Calculate COGS

The many cost-oriented KPIs in manufacturing accounting constitute some of the most important financial metrics for manufacturers and distributors. In this post, we look at the function and relevance of one such KPI – the Cost of Goods Sold.

By Mattias Turovski 8 min read

AccountingChoosing a SoftwareManufacturing Tips

QuickBooks in Manufacturing – How to Make It Work

QuickBooks is one of the most popular accounting systems among growing businesses today. But when it comes to production management, the software needs a substantial amount of extra power. Here is how to make QuickBooks work in a manufacturing company.

By Madis Kuuse 6 min read

Accounting

Manufacturing Accounting – A Simple Guide

Manufacturing accounting is an internal business management process that helps managers keep an eye on the fiscal performance of a manufacturing operation. This post looks at the basic processes that inform manufacturing accounting and defines its most relevant terms.

By Mattias Turovski 15 min read

AccountingManufacturing TipsSales

Job Order Costing in 6 Easy Steps

Job order costing allows companies to allocate manufacturing costs to specific jobs, thereby helping them to give more accurate quotes, measure production efficiency, determine the profitability of specific jobs, and draw better budgets.

By Madis Kuuse 10 min read

AccountingERPManufacturing Tips

Product Costing in 7 Easy Steps

Product costing is a necessity not only for accountants but also for managers. Understanding the costs related to manufacturing your products gives you the chance to determine optimal selling prices and take steps toward cost reduction. Here is a simple guide to performing product costing.

By Madis Kuuse 8 min read

AccountingInventoryManufacturing Tips

Inventory Valuation Methods – Finding the Right Approach

For the financial departments of manufacturing companies, few things are as important as inventory valuation. Due to the effect on the gross profit of a company, choosing the right inventory valuation method is a crucial step in ensuring the financial health of your company.

By Mattias Turovski 10 min read

AccountingManufacturing Tips

Production Costs – A Simple Guide

There are several ways to classify the costs associated with the production of goods. Production managers rarely need to look away from total manufacturing costs, which consist of direct material costs, direct labor costs, and manufacturing overheads. However, production accountants and business owners often need to see the bigger picture.

By Madis Kuuse 8 min read