Accounting Best Practices for Manufacturing Industry

FIFO vs. LIFO Inventory Explained

Choosing the right inventory valuation method is a crucial decision for businesses. Deciding between FIFO or LIFO impacts everything from your taxes to how you manage your stock. In this article, we break down the differences between FIFO and LIFO and help you decide which is best for your business.

By Siim Kanne 12 min read

AccountingManufacturing Tips

What Is the Cost of Quality and How to Calculate It?

The cost of quality quantifies the total cost of quality-related efforts and issues. While an effective measure to identify cash drains, it can also be used to balance the price and quality relationship of your products.

By Madis Kuuse 10 min read

AccountingManufacturing Tips

How to Track Actual Costs as a Growing Food Manufacturer?

Keeping track of your actual costs is vital for ensuring profitability, especially in industries like food where ingredient prices can be volatile. Here is how to track your actual production costs.

By Madis Kuuse 7 min read

AccountingInventory

Inventory Accounting – A Quick Guide

Inventory accounting is a critical aspect of managing a business that sells physical products, ensuring that the value of physical assets is accurately tracked and reported. In this guide, we explore the key concepts, systems, and methods of inventory accounting.

By Mattias Turovski 11 min read

AccountingManufacturing Tips

What Is Piece Rate Pay and How to Manage It?

Piece rate pay is an employment system where workers are paid per unit they process. While it has many benefits to both employers and employees, it also comes with a certain set of complexities and downsides.

By Madis Kuuse 12 min read

AccountingManufacturing TipsSales

Selling Price Formula – How To Find the Right Sales Price?

Regardless of the product, every company must have the best possible pricing strategy set up to ensure success. Even the best companies can find themselves in difficult financial situations with a bad pricing strategy. In this post, we take a look at how to reach an informed sales price.

By Mattias Turovski 12 min read

AccountingProduction planning

Applied Overhead and Actual Overhead – A Quick Guide for Manufacturers

Any manufacturing operation will inevitably incur overhead expenses – indirect costs associated with production. Calculating and adding these costs precisely per produced item is pretty much impossible. This is where applied overhead comes in. Let’s take a closer look at what is applied overhead, how it differs from actual overhead, and why it matters.

By Mattias Turovski 8 min read

AccountingChoosing a Software

How to Use Xero in Manufacturing and Inventory Management?

Xero is one of the most widely used accounting systems among small businesses. Although the software also boasts some inventory management functionality, serious manufacturers and distributors need to find another way to make it work for their companies.

By Madis Kuuse 9 min read

AccountingInventoryManufacturing Tips

How to Calculate the Cost of Goods Manufactured (COGM)?

Knowing the cost of goods manufactured is vital for a good overview of production costs and how they relate to the bottom line. COGM also allows management to identify cash drains, adjust prices, and track the development of the business. You can also listen to this article:

By Mattias Turovski 11 min read

Accounting

FIFO vs. LIFO Inventory Explained

What Is the Cost of Quality and How to Calculate It?

How to Track Actual Costs as a Growing Food Manufacturer?

Inventory Accounting – A Quick Guide

What Is Piece Rate Pay and How to Manage It?

Selling Price Formula – How To Find the Right Sales Price?

Applied Overhead and Actual Overhead – A Quick Guide for Manufacturers

How to Use Xero in Manufacturing and Inventory Management?

How to Calculate the Cost of Goods Manufactured (COGM)?

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Accounting

FIFO vs. LIFO Inventory Explained

What Is the Cost of Quality and How to Calculate It?

How to Track Actual Costs as a Growing Food Manufacturer?

Inventory Accounting – A Quick Guide

What Is Piece Rate Pay and How to Manage It?

Selling Price Formula – How To Find the Right Sales Price?

Applied Overhead and Actual Overhead – A Quick Guide for Manufacturers

How to Use Xero in Manufacturing and Inventory Management?

How to Calculate the Cost of Goods Manufactured (COGM)?

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