Accounting for manufacturing businesses | North Advisory

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    Accounting for manufacturing businesses

    The Australian manufacturing sector contributes around 6% of the country’s GDP and employs over 860,000 people.

    During the global pandemic, local manufacturers have played a vital role in the health response to COVID-19 as many have shifted their production to essential medical equipment.

    We know just how hard manufacturers work and we also know how complex their accounting requirements are.

    Here at North Advisory, we provide tailored accounting for manufacturing and can help your business meet its financial goals.

    Tax and regulatory compliance

    Tax and regulatory compliance

    The manufacturing industry is governed by many different regulatory bodies as it covers such a broad range of activities.

    And there are several standards that oversee the products, services and systems in place.

    But when it comes to tax compliance, it doesn’t matter whether you are manufacturing aerospace components or household goods… we know how to support you and make sure you meet all your ATO requirements.

    Streamlining processes

    Streamlining processes

    Thousands of businesses have embraced lean manufacturing practices, as they help to minimise waste and improve profitability.

    But you shouldn’t only seek to improve your processes on the factory floor… you should also look at streamlining your accounting.

    Modern accounting systems can provide you with invaluable operational information. We can help you implement a tailored selection of accounting processes to suit your needs. It’s critical that you have structures in place that can support growth and give you vital insight into your production bottom line.

    Production costing

    Production costing

    Understanding your production costing is central to your manufacturing business success.

    Whether you use standard costing, job costing or activity-based costing, you need to make sure you are achieving the highest revenue possible.

    Our team is highly experienced in determining the most suitable method for you. We can analyse your data and review the rates for your materials and your labour. We also consider variables and the complexity of your product mix.

    Inventory valuation

    Inventory valuation

    As a manufacturer, it’s essential that you have sound inventory management so that at the end of each accounting period you know the value of the goods you have on hand.

    Inventory valuation helps you determine the cost of any products you have sold and, in turn, the profit you make. Fluctuation in stock – whether in excess or a shortage – directly impacts the commercial success of the business. We can help you build inventory management systems that will make this a straightforward process.

    To find out more about our accounting for manufacturing services, please contact our team today.

    Get in touch to book a free consultation...

    We'd love to help you build a successful business and grow your personal wealth