How Accounting Software Helps Manufacturers Manage Raw Material Purchases
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Does your business make the products it sells? You could benefit from accounting software.
Unlike other businesses, manufacturers have to log the entire creation process. This includes raw materials, costs and value of the finished items that they have created, which are categorised and taxed separately.
There are many ways this can be done. So, to help illustrate the value of accounting software, we’ve provided the below article on the benefit of bookkeeping solutions in manufacturing.
Manufacturing requires a much more fluid approach to your finances. With small business accounting software, you can track transactions, inventories, profits, losses, assets and liabilities. In addition, accounting software allows you to create Bill of Materials so that you have a complete overview of your inventory stored on the cloud – accessible anywhere!
It can be impossible for an accountant unfamiliar with the idiosyncrasies of your organisation to help tighten processes and optimise budgets. Accounting software, however, logs all cashflow and becomes integrated with your procedures.
Accounting software can be used for more than just tracking financial aspects of your business. It’s also an effective way for understanding how your business is running as a whole.
You’ll be able to monitor item costs, remove production bottlenecks and increase profitability all from a single system. You can also carry out a variance analysis and scrutinise your budget more effectively, enabling you to refine spending the following tax year.
Like retail, manufacturers or sole traders in manufacturing are both able to claim on stock. However, unlike retail, manufacturers have to account for products made and sold. This could make expenses very time-consuming.
But bookkeeping software can transform your operations. Instead of needing to show a receipt for every item involved in the production of your products, you simply log every purchase when it occurs. This in turn saves you time and boosts efficiency.
Business accounts software isn’t a short-term solution, it provides you the room to develop your operation into an industry leader and highlights opportunities for expansion.
With this information readily available to you, your organisation will grow. You’ll even be able to use e-commerce syncing to enhance your delivery arm while simultaneously logging materials within your production chain.
At Liquid, we offer all of the above while going one step further. We tailor our system to you. Our accountancy software is designed to log all raw materials and qualify you for maximum business allowances. Our software provides a real-time view of your finances, allowing you to better understand cashflow and the genuine profitability of your merchandise.
Interested in taking advantage of tools that won’t only give your accounts a boost but your business as well? Call us today on 0161 413 5050 or email info@liquidaccounts.com.