Bookkeeping for manufacturers

What the books involve

• Raw materials and components: supplier invoices matched to purchase orders and goods received, so price or quantity differences are queried before the bill is paid.
• Trade customer accounts: sales invoiced from each dispatch or delivery docket, with payments on credit terms matched and a monthly aged list of customers who are past their terms.
• Stock records: an inventory or manufacturing system linked to Xero or MYOB, with the system's stock value report checked against the stock account on the balance sheet each month.
• Plant and machinery: equipment finance and lease repayments reconciled to lender statements, with maintenance, spare parts and tooling bills coded to accounts of their own.
• Freight and overseas suppliers: inbound freight, courier accounts and supplier bills in foreign currencies entered when received and matched to the materials they relate to.
• Factory overheads: energy, waste removal, rent and equipment servicing coded consistently, so production costs can be compared from one month to the next in the reports.