Outsourced Integrated Accounting Services Company for Manufacturing Businesses - Bi-Outsource
The manufacturing industry accounts for a significant share of the industrial sector in developed countries. The final products can either serves as a finished good for sale to customers or as intermediate goods used in the production process.
Manufacturing industries are the prominent wealth producing sectors of an economy. These industries use multiple technologies and methods widely known as manufacturing process management.
The accounting for a manufacturing business deals with the inventory valuation and the costing of goods. Well, this can be considered as the complex part of manufacturing accounting. The receipt of the raw material to the selling of the goods in the market requires standard automization procedure.
Our expert manufacturing accounting team is having enormous experience in manufacturing accounting which can aid with the setting up integrated accounting system including the financial accounting, cost accounting, and inventory accounting.
The Process we follow for the integration of accounting, costing and inventory module of Manufacturing accounting:
1. Understanding of client’s business including following key parameters for configuration of inventory and costing module : Main raw material items
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Main raw material items
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No. of different production processes and work in progress items
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Accomplished goods items and by-products
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Standard time required at each production process
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Main types of machinery involved in each production process
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Gathering power capacity/voltage details for different machinery
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Production type – BOM/Batch, Assembly, Disassembly
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Standard production ratios
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Identifying control requirements
2. Preparation of implementation plan on the basis of business analysis and adding suggestions required at each control points
3. During our implementation phase, our team will perform following manufacturing accounting and bookkeeping functions in line with implementation :
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Set up the charts of accounts for financial accounting
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Alteration and finalization of inventory master with coding
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Recommending and performing suitable tracking/class category for cost accounting
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Finalization of cost apportion master for apportionment of raw material, direct labor, direct electricity, or any other direct expense to arrive item wise cost of production or cost of sales (if software feature available)
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Preparation of standard template for data collection from the procurement department to the sales & marketing department
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GCommunication of various control points for improved internal control system
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Support in Integration of barcoding system with the accounting system
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Capturing accounting transactions in the accounting system
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Perform various reconciliation and checking the accuracy of transactions completed
Our Manufacturing Accounting Services
- Set Up Chart of Accounts
- Posting of purchase transactions including Purchase order, Purchase invoice and receipt of inventory (Including batch with expiry/serial no)
- Entry for other purchase related expenses for calculating landing cost
- Ensuring for identical layouts for all the scenarios
- Capturing finished goods item wise BOM
- Entry for issue of material for production
- Posting necessary entry for transfer of material between locations
- Posting of stock adjustment entries if any
- Allocation of labour, electricity and other direct expenses against production
- Recording of estimates, quotes, sales invoices and delivery note
- Verifying and recording bills from vendors
- Payment to vendors
- Processing employees’ pay and update payroll file
- Recording depreciation and other adjusting entries
- Project wise expense segregation and allocation
- Month-end or year-end closing entries
- Managing overhead
- Entering and processing expense invoices
- Preparing Accounts Payable Aging Summary and Details report
- Recording of revenue and receipts from customers
- Preparing Accounts Receivable Aging Summary and Details report
- Profit and Loss Statement
- Cash Flow Statement
- Balance Sheet Reporting
- Trial Balance
- Fixed Assets Process Reports
- Stock consumption and stock movement analysis report
- Location wise inventory report
- Outstanding Purchase Order pending for receipt of goods
- Outstanding Sales Order pending for dispatch of goods
- Cost Accounting for different manufacturing processes
- Bank Reconciliation report
- Item wise costing analysis
- Department wise Employment Cost Analysis
- Variance analysis
- Setting up Payroll
- Payday calculations with processing of payroll
- Payroll taxes calculation and form filling
- 941, 1099, 940 and quarterly state tax returns