Manufacturing Accounting Services for US Manufacturers Know What Every Product Really Costs
Manufacturing accounting services that track raw materials, work in process and finished goods, allocate labor and overhead properly and show the true cost and margin of every product and job.
- Product costingMaterial, labor, overhead
- Inventory in three stagesRaw, WIP and finished
- Variance analysisStandard vs actual
Big Accountants provides manufacturing accounting services to US manufacturers, from small job shops to multi line producers. We record materials, labor and overhead through raw materials, work in process and finished goods, so cost of goods sold, inventory and product margins are accurate every month.
Manufacturers rarely lose money on obvious things. They lose it on products priced from old cost assumptions, overhead nobody allocates, scrap nobody records and variances nobody explains. Our accountants build a costing routine your plant can follow and your bank can trust.
- Raw materials, WIP and finished goods
- Labor and overhead applied to products
- Cost and margin by product or job
- Purchase price and usage variances
- Scrap, rework and inventory adjustments
Why Manufacturing Accounting Needs Specialists
Recent federal changes reward manufacturers whose cost records are clean enough to support them.
What Our Manufacturing Accounting Services Include
Our manufacturing accounting services give you a cost system sized for your plant, run every month.
Inventory in three stages
Raw materials, work in process and finished goods reconciled to counts.
Product and job costing
Material, labor and overhead captured for each product or job.
Overhead allocation
Overhead applied on a fair base, such as labor or machine hours.
Variance analysis
Standard versus actual cost, with price and usage variances explained.
Scrap and rework
Waste and rework recorded so margins reflect reality.
Purchasing and payables
Purchase orders, receiving and supplier bills matched.
Research expense tracking
Records that support Section 174A deductions and the research credit.
Margin by product line
Gross margin by product, customer and line every month.
Manufacturing Costing Methods Compared
The right method depends on what you make and how you make it. We help you choose and apply it consistently.
| Method | How it works | Best for |
|---|---|---|
| Job costing | Costs collected for each order or batch | Custom, made to order and contract work |
| Process costing | Costs averaged across continuous production | High volume, identical products |
| Standard costing | Planned costs set, then variances measured | Repeat production with stable inputs |
| Activity based costing | Overhead assigned by activities that drive it | Plants with diverse products and high overhead |
Inventory costs for tax may also be subject to the uniform capitalization rules of 26 U.S.C. 263A, with an exemption for smaller businesses under the gross receipts test. Your tax preparer can confirm what applies.
Manufacturing Accounting Problems We Fix
If any of these sound familiar, your product costs are probably wrong.
- Products priced from cost estimates set years ago
- Overhead sits in expenses instead of product cost
- Work in process is a guess at month end
- Inventory only counted once a year
- No one explains why margins moved
- Research spending not tracked for tax benefits
Manufacturing KPIs We Report Every Month
The measures plant owners use to price, plan and invest.
Gross margin by product
What each product keeps after full cost.
(Sales - Product cost) / Sales
Cost per unit
Total production cost of each unit made.
Production cost / Units produced
Overhead rate
Overhead applied per labor or machine hour.
Overhead / Allocation base
Inventory turnover
How quickly stock moves through the plant.
COGS / Average inventory
Scrap rate
Share of material lost to waste.
Scrap cost / Material used
Purchase price variance
Difference between standard and actual material price.
(Actual price - Standard price) x Quantity
How We Set Up Manufacturing Accounting
We fix the cost foundation first, then run it every month.
- Weeks 1 to 2
Map
Production flow, bill of materials and inventory stages documented.
- Weeks 2 to 4
Design
Costing method, overhead rates and chart of accounts set up.
- Weeks 4 to 6
Reconcile
Opening inventory in all three stages agreed to counts.
- Every month
Close and analyze
WIP, finished goods and variances closed and explained.
Manufacturing Accounting Pricing
Price depends on the number of products and production lines, inventory stages, costing method and reporting depth. Every quote is fixed in writing after a free call, and our pricing is competitive. See how our pricing models work.
Ongoing cost accounting
Inventory, costing and reporting for an agreed fee.
Costing projects
A costing model or inventory rebuild at a set price.
Advice on demand
Pricing, capacity and investment questions.
More Services for Manufacturers
Accounts payable
Bills coded, approved and paid on time.
Tax preparation and filing
Business returns prepared and e-filed.
Controller services
Month end close and internal controls.
Virtual CFO
Forecasts, budgets and KPIs.
See all our accounting and bookkeeping services for US businesses.
Manufacturing Accounting FAQs
What do manufacturing accounting services include?
Manufacturing accounting services cover inventory in raw materials, work in process and finished goods, product or job costing, overhead allocation, variance analysis, scrap tracking, purchasing and margin reporting by product line.
What is the difference between job costing and process costing?
Job costing collects costs for each order or batch and suits custom work. Process costing averages costs across continuous production of identical products. Many manufacturers use a mix of both.
How should overhead be allocated to products?
Overhead is usually applied using a rate based on direct labor hours, machine hours or another measure that drives cost in your plant. The right base is the one that best reflects how overhead is actually consumed.
Can you help with research and development tax benefits?
We keep records of research and experimental spending that support deductions under Section 174A and the research credit. Your tax preparer, or our tax team, decides how to claim them.
How do you handle work in process at month end?
We value work in process using your production records, such as job status, units completed and materials issued, so month end inventory and cost of goods sold are not estimates.
Which systems do you work with?
We work in QuickBooks Online, QuickBooks Desktop, Xero and Zoho Books, alongside the inventory, MRP or ERP tools you use for production.
How much does manufacturing accounting cost?
Cost depends on products, production lines, inventory stages, costing method and reporting depth. We offer a competitive fixed monthly fee, hourly billing or per task pricing, quoted in writing after a free call.
Do you count our inventory?
Your team or a counting service carries out the physical count. We reconcile the count to the books, record adjustments and investigate significant differences.
Price Products From Real Costs
Tell us what you make and how. We will recommend a costing setup and send a clear written quote.