The manufacturing accounting process is complicated whether your operation is big or small. These days, many businesses have turned to manufacturing and accounting software to streamline processes and gain deeper operational insights. But if you’re still stuck on using Excel spreadsheets to understand what’s going on, then you’re at risk of falling one step behind. While it makes sense to update your manufacturing accounting system, how do you choose the right one?
Basic vs Advanced features of manufacturing accounting software
Start with a list of requirements so you are able to distinguish the “must-haves” from the “nice-to-haves”.
Most manufacturing accounting software products come with standard features like invoice tracking and importing bank feeds. The automatic categorisation of bank transactions and visibility of real-time cash position are also fantastic features. These are great if you’re mainly after relief from everyday repetitive tasks.
But accounting for manufacturing company is likely to require advanced features too, particularly if you want tools to help with inventory valuation.
In order to value finished products correctly, you need a solution that accounts for raw materials, processing and other relevant costs incurred when creating each product. You’ll also need to assign value to work-in-progress.