Manufacturing and production
Making physical goods, where bills of material, work orders and true production costing govern the books.
Six short steps. No email or account.
Family
Manufacturing, wholesale and agriculture
Physical production and distribution, where inventory accounting is real.
- Priority decisions
- 8
Foundation — what that means here
Operating reality
What makes this different
The realities that change which tools can actually work for you.
Bill-of-material and work-order costing is a real accounting requirement that entry-level software cannot do.
Raw material, work in progress and finished goods are three separate inventory states with tax consequences.
Equipment finance and capital allowances are a larger part of the financial picture than in service businesses.
Where to start
The decisions that matter here, in order
You do not have to take them in this order, and you do not have to take all of them. This is where most businesses like yours start.
- 1Accounting software
Track income and expenses so tax time is a report, not an archaeology dig.
- 2Inventory and materials
Know what stock and materials you hold, and what they cost.
- 3Payroll
Pay employees and handle the tax filings that come with it.
- 4Business insurance
Cover the things that could end the business in one bad afternoon.
- 5Cash flow and budgeting
See what is coming in and going out before the account gets tight.
- 6Time tracking
Know the hours worked, and which job they belong to.
- 7Credit and financing
Borrow for equipment, vehicles or a gap, on terms you understand.
- 8Paying bills
Pay suppliers and subcontractors on a schedule, with a record of it.
Your next step
Answer six short questions about your manufacturing and production business: your team, where the work happens and what you want to fix first. You get an operating plan in the order to tackle it, with the must-haves and comparison points for each area.
Answers
Common questions
- What software does a manufacturing and production business need?
- Making physical goods, where bills of material, work orders and true production costing govern the books. The decisions that matter most are 8 areas, starting with the ones tied to how the work actually gets done and paid for.
- What makes running a manufacturing and production business different?
- Bill-of-material and work-order costing is a real accounting requirement that entry-level software cannot do. Raw material, work in progress and finished goods are three separate inventory states with tax consequences. Equipment finance and capital allowances are a larger part of the financial picture than in service businesses.