Helping Small Manufacturers – White Paper
A case study in manufacturing accounting and QuickBooks applications
Business Cents was contacted by ABC Manufacturing Company** of Spokane, Washington, just a few months after they had formed. When we got the call, ABC had already purchased and installed QuickBooks for desktop. They had also added an accountant to their payroll. The problem was that the on-staff accountant had no experience with QuickBooks and was trying to learn Intuit on the fly with QuickBooks for Dummies as the only guide.
ABC Manufacturing’s in-house accountant tried to recreate their books in order to determine how much their products were costing them to manufacture – but things only got more muddled. Frustrated, the accountant finally Googled “QuickBooks help in Spokane” and found Business Cents.
The first thing we did to help was to backtrack through the muddle and clean up ABC’s data. When using any accounting software to manage your manufacturing business, it’s vital to place data in exactly the right place in order for the software to provide accurate data analysis and projections. This is true of Intuit products too! As Certified Pro Advisors for both QuickBooks Desktop and QuickBooks Online, our experts at Business Cents, were able to undo the damage that had already been done and accurately recreate the company’s bookkeeping up to the present date.
The next service we performed for ABC Manufacturing was to simplify their process going forward. In order to do this, we:
- Provided ABC with a comprehensive system of tasks for their in-house accountant to follow daily, weekly, and monthly in order to remain organized and accurate going forward.
- Created a process that allowed them to retroactively add all their inventory parts into QuickBooks.
- Showed them how to build out the expenses for their products once the inventory parts were correctly added to their Intuit software.
Meeting with the manufacturing company’s CFO and owner, we were able to establish a baseline of cost for their products and offer advice on mark-ups and what they should be charging. Because our Intuit experts and Pro Advisor staff have extensive experience working with manufacturing accounting processes and software, we were able to help ABC determine their cost of goods (the cost of labor and materials for products sold) as well as the value of their inventory on hand (items not yet sold).
Perhaps the most efficient manufacturing software tool we provided ABC Manufacturing with was automated data entry via banking downloads in QuickBooks. Banking downloads automatically pull your bank transactions into QuickBooks and organize the data correctly, eliminating the need for large amounts of manual data entry. This not only saves time, but also diminishes the possibility for human error!
Through bookkeeping clean-up services, creation of an efficient accounting process, and expert data analysis, Business Cents was able to provide ABC Manufacturing with a clear overall picture of where their company stands as well as a stable foundation for moving forward.
No matter what your unique accounting needs are, Business Cents is ready to work with you! We offer many ways to use QuickBooks specifically for manufacturing businesses, including the use of SOS Inventory and MISys.
Want to know more about how we can help you? Call us at 509-389-7000 and schedule a free initial consultation. Or, browse our manufacturing software and services.
**NOTE: At Business Cents, client confidentiality is key. That’s why we use pseudonyms when sharing our success stories.