Accounting Best Practices for Manufacturing Industry

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

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 many metrics available for measuring the financial side of the manufacturing process. Whereas production managers mostly make do with the total manufacturing cost KPI, management and accounting often need a wider perspective.

By Madis Kuuse 8 min read

AccountingInventoryManufacturing Tips

Inventory Costs – A Quick Overview

Inventory costs make up a substantial part of any manufacturing or distributing company’s total expenses. To ensure the good financial health of your business, it is necessary to know how to make sense of these expenses and how to balance them.

By Madis Kuuse 9 min read

AccountingManufacturing TipsProduction planning

Capacity Planning – An Essential Guide for Manufacturers

Capacity planning is a strategic process aimed at determining the production capacity required to meet forecasted demand. It is a prerequisite for efficient production scheduling, supply chain planning, and inventory management.

By Karl H Lauri 16 min read