Manufacturing Accounting Services
Job Costing & Cost Accounting
Manufacturing accounting isn't general bookkeeping. We handle job costing, inventory accounting, and transactional operations built specifically for manufacturers — the accounting infrastructure your controller and CFO actually rely on.
Tolani Lawson
Founder & Fractional CFO
CPA
ACCA
MSc Finance
15+ Years
Direct Access to the Expert
When you work with Fiscal 12, you work directly with me—not a rotating team of junior associates learning your business on your dime.
This means faster answers, deeper context, and strategic guidance from someone who has evaluated hundreds of manufacturing businesses from the investor's perspective.
One industry. One focus. Your dedicated financial partner.
General Bookkeepers
Can record transactions
But can't set up job costing systems, calculate manufacturing variances, or produce the accounting data your controller and CFO need
Basic AP processing
Invoice entry without three-way match against POs and receiving documents — misses purchase price variances and receiving errors
Inventory as a plug figure
Inventory balance updated periodically, not tracked through raw materials → WIP → finished goods with accurate cost at each stage
COGS as a residual
Cost of goods sold calculated as revenue minus what's left — not as a properly costed reflection of what was actually produced and sold
Fiscal12 Accounting Operations
Manufacturing-specific system setup
Job cost systems, chart of accounts, and ERP configuration built from the ground up for how your production actually runs
Three-way match AP as standard
Every vendor invoice matched to a PO and receiving document before approval — catches purchase price variances and prevents overpayments
Perpetual inventory through all three stages
Every material movement captured in real time — receipts, issues to production, WIP movement, finished goods — with accurate costs at each stage
COGS calculated from actual production costs
Materials, direct labor, and overhead applied using your costing methodology — reconciled to inventory records and production data, not estimated
Manufacturing Accounting We're Built For
Job shops and make-to-order manufacturers with job-level cost tracking requirements
Batch and process manufacturers needing production run cost allocation
Operations with high AP volume, three-way match requirements, or complex purchase order workflows
Manufacturers with ERP systems that need proper integration into financial records
Multi-location businesses where inventory reconciliation across sites is breaking down
Companies where the current close takes longer than 10 business days
Transactional Accounting for Manufacturers
The foundation of everything else is accurate, timely transaction recording. We handle the full scope of daily and weekly accounting operations — with the manufacturing-specific nuances that general bookkeepers frequently get wrong.
Accounts Payable with Three-Way Match
We match invoices to POs and receiving documents before approving payment — catching purchase price variances and receiving errors before they become disputes. For manufacturers buying raw materials in volume, this process directly protects your job cost accuracy and COGS.
Accounts Receivable & Progress Billing
We manage your invoicing, apply payments, and maintain accurate AR aging. For manufacturers with milestone billing, progress invoicing, or retainage requirements, we set up and maintain the billing structure your contracts require and monitor overdue accounts actively.
Payroll with Shop Floor Labor Tracking
We process payroll for salaried and hourly employees, track overtime by department and work center, and ensure that direct labor costs flow correctly into your job costing system. Time tracking system integration is handled so labor costs hit the right jobs.
Bank Reconciliation
Complete, timely reconciliation — every account, every month. For manufacturers with multiple bank accounts, lockbox arrangements, or credit facilities, we reconcile all accounts and flag any unusual items for management review.
Purchase Order Management
We manage the PO process from creation through receiving and payment — including blanket POs, release orders, and consignment inventory arrangements. The accounting structure matches your purchasing process, not the other way around.
ERP & System Integration
We establish the integration between your production data and financial records — so material movements, labor entries, and production outputs flow into accounting without manual re-entry. Production orders to COGS. Inventory to general ledger. Time systems to job costs.
Manufacturing Cost Accounting
Manufacturing cost accounting connects your production operations to your financial records — tracking costs through raw materials, work-in-progress, and finished goods, and allocating them accurately to the products and jobs that incurred them.
Service
What We Deliver
Standard vs. Actual Costing
We assess your production model and ERP capabilities and implement the costing method that gives you the most useful management data — not just the easiest setup. Includes ongoing maintenance as material costs and production volumes change.
COGS Accuracy
COGS calculated using the appropriate costing method (standard, actual, or weighted average) and reconciled to your inventory records and production data — not estimated or treated as a residual.
Overhead Allocation
Allocation methodology development that reflects how your overhead costs are actually consumed by different products and production runs. Directly determines your reported product margins — we build this correctly from the start.
Product & Customer Profitability
Regular profitability reports by SKU, product family, and customer — including fully loaded margin with overhead allocation. Gives your team the information needed for pricing and product mix decisions.
Manufacturing Chart of Accounts
Revenue segmented by product line or business unit. COGS structured to capture direct materials, direct labor, manufacturing overhead, and subcontracted costs separately — feeding accurate gross margin and variance analysis.
Job Costing Services for Manufacturers
Job costing is the single most important accounting function for discrete manufacturers. Without accurate job costs, you're pricing on intuition — and your margin decisions are based on incomplete information.
Service
What We Deliver
Custom job costing setup
We build your job cost system from scratch or restructure an existing one — defining cost codes, work centers, overhead pools, and the allocation methodology appropriate to your operations.
Material requisition tracking
Every material movement from warehouse to production floor is captured against the job or work order that consumed it. Material substitutions and scrap are tracked separately and reported.
Direct labor hour allocation
Labor hours allocated by employee, by work center, and by job — with overtime and shift differential handled correctly. Time tracking system integration included if you use one.
Overhead application
We establish and maintain your predetermined overhead rates — calculated from actual overhead costs and expected production volume. Rates reviewed and updated annually or when costs change significantly.
Job profitability reporting
Every completed job gets a P&L summary showing estimated versus actual costs, with variance explanations. Open job reports show in-progress costs against budget for jobs not yet complete.
Inventory Management & Accounting
Inventory is typically the largest asset on a manufacturer's balance sheet — and one of the most complex to account for accurately. Poor inventory accounting creates balance sheet distortions, incorrect COGS, and compliance exposure.
Perpetual Inventory Systems
We maintain perpetual inventory records that reflect every material movement in real time — receipts, issues to production, location transfers, and returns. Your inventory balance at any point reflects actual quantities at accurate costs.
Physical Count Reconciliation
We design and manage your physical count process — full counts or cycle counts — and reconcile differences between book records and physical quantities. Material variances are investigated and explained, not just written off.
Valuation Methods
We apply the inventory valuation method appropriate to your business — FIFO, LIFO, or weighted average — consistently and in compliance with GAAP. When material costs are volatile, we analyze the P&L and balance sheet impact of your valuation choice.
Obsolescence & Scrap Tracking
We maintain the tracking system that identifies at-risk inventory, support the process for establishing appropriate reserves, and ensure that scrap and obsolescence are recorded accurately rather than absorbed into COGS without analysis.
When to Outsource Manufacturing Accounting
The decision to outsource comes down to one question: is your current accounting infrastructure giving your management team the information it needs to run the business?
Books close after the 20th
Your management team is always working with last month's numbers by the time they have them. A well-run close should be completed in 7–10 business days.
No job-level profitability data
You know revenue by customer but not margin by job. Pricing decisions are based on aggregate averages rather than actual job cost performance.
Inventory records don't match physical counts
Persistent discrepancies between book inventory and physical reality signal a process failure — not just a reconciliation issue. The root cause is in your accounting system setup.
Controller or CFO cleaning up accounting work
When your controller spends significant time correcting the underlying accounting rather than analyzing and planning, you're paying controller rates for bookkeeper work.
External CPA flags year-end issues
Problems that surface at year-end during the audit or tax preparation should have been caught during the year. That's what proper accounting operations prevent.
Transaction volume exceeds what one bookkeeper can handle
Growth in production complexity, entity count, or transaction volume means a single bookkeeper is a bottleneck — errors increase and close time lengthens.
In-House vs. Outsourced Manufacturing Accounting
The cost comparison is straightforward. The capability comparison is the more important one.
Fiscal12 Outsourced Accounting
In-House Accounting Staff
Annual cost
$60,000–$90,000/yr per accounting staff member + benefits + management overhead + technology costs + turnover risk
$60,000–$90,000/yr per accounting staff member + benefits + management overhead + technology costs + turnover risk
ERP & system integration
Included — we map and maintain the data flow between your production system and financial records
Typically requires additional IT or consultant spend to configure and maintain
Availability
Team-based — no single point of failure, consistent close timeline regardless of individual availability
One person — vacation, illness, and turnover create gaps
Manufacturing Accounting Best Practices We Bring to Every Engagement
Most manufacturers don't have these in place when they come to us. They make an immediate difference in the quality and timeliness of financial information.
Documentation Requirements
Every accounting entry has support. Every reconciliation has a workpaper. Every journal entry has an explanation. When your auditors or lenders ask for documentation, we produce it immediately — because we maintain complete documentation as standard, not as an after-the-fact project.
Systems We Work In
Accounting Platforms
QuickBooks Online
setup, job costing configuration, and ongoing management
QuickBooks Desktop
manufacturing & wholesale editions, including job cost modules
NetSuite
manufacturing module, WIP tracking, and multi-entity setup
Sage Intacct
multi-entity consolidation and project accounting
Sage 50
manufacturing company edition
Manufacturing ERP & Operations Systems
QuickBooks Online
setup, job costing configuration, and ongoing management
QuickBooks Desktop
manufacturing & wholesale editions, including job cost modules
NetSuite
manufacturing module, WIP tracking, and multi-entity setup
Sage Intacct
multi-entity consolidation and project accounting
Sage 50
manufacturing company edition
How We Onboard a New Accounting Engagement
Every engagement begins with a structured onboarding process built to diagnose your current accounting state and get clean books running — without disrupting your operations.
Phase 1 — Diagnose
Understand Your Current Books
We review your existing chart of accounts, transaction history, close process, and any open reconciliation issues. Job costing setup (or absence), inventory accounting method, and ERP/system configuration are all assessed so we know exactly what we're inheriting and what needs to be built or corrected.
Typically 1–2 weeks
Phase 2 — Build
Set Up Manufacturing Infrastructure
We configure or restructure the accounting systems your manufacturing operations require — job cost structure, chart of accounts, overhead allocation methodology, ERP integration, and the close checklist that governs every month-end going forward. Foundation work done once, correctly.
Typically 3–5 weeks
Phase 3 — Deliver
Ongoing Accounting Operations
Full accounting operations running on schedule — AP with three-way match, AR, payroll integration, bank reconciliations, job costing, inventory accounting, and monthly close completed within 7–10 business days. Clean books, on time, every month.
Ongoing monthly engagement
Accounting Operations for PE-Backed and Exit-Planning Manufacturers
Clean accounting operations are the foundation of every transaction. PE buyers and acquirers scrutinize the underlying accounting data — job costs, inventory records, WIP valuations — before they trust any number on the income statement. We build and maintain the accounting infrastructure that holds up under that scrutiny.
Diligence-Ready Transaction Records
Every journal entry has support. Every inventory balance has a methodology. Every job cost record is traceable back to source data. When a QoE analyst opens your books, they find records that confirm your numbers — not records that require explanation and remediation.
WIP & Inventory Accounting That Holds Up
WIP valuation methodology documented and consistently applied. Inventory accounting method confirmed GAAP-compliant. Physical count reconciliations current. These are the specific items QoE analysts scrutinize in manufacturing diligence — we maintain them as a standard part of how we work.
Cost Accounting for Seller Narratives
Accurate job-level margins and fully loaded product profitability give your M&A advisors and CFO the underlying data to build a credible financial story. Overhead allocation methodologies that are defensible and well-documented support the margins you present — not ones that unravel under analysis.
Preparing for a sale, PE investment, or bank refinancing?
The quality of your underlying accounting records directly affects how smooth the diligence process is — and how much deal value you retain. We build accounting operations to the standard that makes diligence a confirmation, not a complication.
Manufacturing Accounting Results
Real outcomes from accounting operations engagements. Clean books on time — every month.
Phase 1 — Diagnose
Understand Your Current Books
Challenge: No job costing system — all production costs were pooled into a single COGS account with no visibility into which jobs were profitable. Books were closing on the 28th of the following month.
What we did: Built job cost structure in QuickBooks, established material requisition and labor hour tracking processes, implemented monthly close checklist with defined deadlines.
8 days
Monthly close (down from 28 days)
4
Unprofitable job types identified in first 90 days
8 days
Monthly close (down from 28 days)
Real outcomes from accounting operations engagements. Clean books on time — every month.
What is manufacturing accounting and how is it different from general accounting?
What is job costing and which manufacturers need it?
How do you handle WIP (work-in-progress) accounting?
How much does outsourced manufacturing accounting cost?
Can you integrate with our existing ERP or manufacturing software?
How does outsourced accounting connect to your controller and CFO services?
Know What Every Job Actually Costs
Tell us about your current accounting setup. We'll show you what manufacturing-specific accounting operations look like — and what it takes to close in under 10 days.
