Pacific Shine Group
Pacific Shine Group

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Small Manufacturing Business Line Realigned

We are happy to announce the availability of resources in the area of samll business manufacturing.  Manufacturing operations, cost accounting, financial reporting and compliance is available on demand in all of our geographical service areas.

 

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Manufacturing Cost Accounting

In the area of cost accounting, especially for manufacturing companies, there are many opportunities to misunderstand the rules and requirements, or to misuse the manufacturing system tools (e.g., manufacturing and accounting software) due to inexperience or not having the time to focus on this important issue.

 

When cost accounting is understood and defined for a manufacturing enterprise and system controls and procedures are in place two major benefits are achieved:

 

  • Valuation of inventory is accurately represented in the financial statements.  This is mainly accomplished using automated controlls and procedures set up in the manufacturing software and the interface to the accounting software with its general ledger contributing to the format, classificating and accuracy of reported data.
  • Accurate data is available to management, based on which decisions can be timely made.  This is critical in any manufacturing (and other) environment, as cost data must be fully understood in order to be able to establish pricing policies and marketing and sales decisions. can be made.

We assist manufacturing (and other) companies define and understand their cost accounting needs and reporting requirements.  We then either work with the existing manufacturing and accounting systems to enable the client to record all transactions per policies and definitions, or recommend a system that is closely matched to the client's needs.  At that point, the client either performs its own setup and configuration or asks us to participate in some or all of the project phases.

  • Analysis of the current situation and the need for action
  • Analysis of process-relevant channels and potential sources of problems
  • Developing a restructuring plan with ad hoc measures
  • Support in implementing the restructuring and consolidation process

 

Here's an article on the fundamental setup of cost accounting for a typical small manufacturer who wishes to automate the process.

 

Here you can read on how to determine the direct labor and overhead burden rates using your ERP or Manufacturing software. 

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