MANUFACTURING INDUSTRY:
WHY DO YOU NEED AN EXPERT ACCOUNTANT?
You need an Accountant & Business Adviser who are expert in manufacturing, who understand the challenges in dealing with the day-to-day running of a business while trying to build for the future.
You need an Accountant & Business Adviser who are expert in manufacturing, who understand the challenges in dealing with the day-to-day running of a business while also working to help you build for the future.
To be successful your team needs a mixture of complementary skills; you provide the entrepreneurial drive & ambition, we provide the financial systems & control, along with pro-active practical advice to improve profits and optimise your tax position.
As a critical member of your management team we take care of the Finance side, so you can focus on attracting, retaining and selling more to your customers and building your business’s value, which helps with exit strategies, selling and succession planning.
We focus on helping your business to grow. We do this by using the latest technology and our business acumen, so that your company reaches its full potential.
From the moment we start out in our working lives we are all on a wealth pathway. Along the way, financial obstacles will need to be overcome, with opportunities seized and optimised.
Whatever life has in store for you, we can support you with an array of services and insight, and be by your side helping to ensure you choose the most advantageous route.
If you want your business to be successful, you need to have the financial expertise in place to plan your future, so you can grow, scale, and thrive.
We have solid reputation in this sector working with variety of owner managed businesses, ranging from family businesses, sole traders, and entrepreneurs, through to large companies.
If you have 5 or more employees, turnover between £1 & £5 million, need suitable premises and expensive plant or machinery, then you will need strong financial expertise in your team. Our aim is for you, your business, and your team to have all the financial expertise you need for your business to prosper & achieve your goals. If you have an end or exit in mind, we can help with that as well.
Every strong business has a good eye on sales margins whatever their industry or sector. This means knowing your market to get a good sales price, to buy right and control costs, which are all crucial.
We give you all the numbers that matter, and help with efficient strategies for key employee remuneration and staff incentive schemes. Because the latest technologically advanced plant & machinery is not cheap to buy, financing the operation is an important consideration, so we liaise with banks and other financial institutions for you.
We can help you to implement the latest technology in accounting and bespoke software packages, including, to help you automate, systemise and optimise your operations, enabling us to spend more time focusing on how you can grow and scale successfully.
We want to help you build a business that is not reliant on you being there all of the time, and help you to become a business owner who is able to enjoy more time out doing those things you really enjoy.
Why do manufacturing businesses have different accounting needs?
Often your capital outlays are significant, so you also have to be tax efficient, therefore the complexities of tax legislation associated with capital expenditure and R&D need careful consideration. This is a potentially significant barrier to entry for new entrants into manufacturing, or for you if you are expanding into new product lines.
Because your business model is complex, it follows that your accounting is also more complicated. You need to manage the potential need for fundraising and to keep track of inventory: as a manufacturer you will have a stock of raw materials and component parts, which need to be accurately recorded and valued. You need to focus particularly on valuing inventory accurately, as well as tracking the amount of goods you sell, and have some focus on systemising re-stocking and re-ordering.
To be successful you need someone in your finance team who can you craft a detailed strategic plan, that you both understand & can work on, which focuses your attention on the key areas critical to success.
Yours is a unique and complex sector with your own set of challenges and requirements, in a fast-paced world you face a multitude of financial complexities that demand expert guidance.
Because you need suitable premises, a good production team, and to invest heavily in capital expenditure and, because plant and machinery is expensive, you need the right financial expert help you secure the funding & working capital you need.
Innovative companies in this sector producing specialised high-quality products continue to perform strongly, increasing employee numbers and turnover despite economic instability.
To stay ahead of your competition you are likely to need some help with fundraising to finance capital expenditures: we can help you with this, by working with well-known banks, as well as advisors like Swoop, Funding Options and Capitalise (with whom we hold their Mastery Certification).
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Specialist Manufacturing Accounting Services should include help with:
Strategic Plan
A detailed strategic detailed medium-term plan, that you understand & can work on, focusing on key areas, including fundraising & tax planning. This will help you to boost profitability, your take home pay and increase the value of your business.
Financial Direction & Management
Financial Direction and Financial Management is important, so your business is not flying blind. You should also demand monthly reporting of Performance vs Forecast, and regularly review progress. This will ensure you & the team know and understand your financials and, can monitor how your business is doing financially, so you can make sound business decisions and avoid making costly mistakes.
Bookkeeping & Payroll
You must ensure your business stays on track, so accurate bookkeeping & payroll are critical; if not Management Information will be all but meaningless, and your tax returns could contain errors resulting in expensive penalties. Remember the old saying: Rubbish In, Rubbish Out.
Manufacturing Accounting Software
You need your Accountant be expert in the financial or ERP software you are using, and if appropriate to help you transition you to a new platform. We have vast experience working with a range of ERP systems, including:
We are also familiar with less popular, in-house or bespoke-to-industry software that have other functionalities.
Tax & Specialist Help
Manufacturing and engineering firms face unique financial challenges that need specialist help. These include managing capital costs including raising funds, the cost of goods sold, inventory valuation, and the complexities of tax legislation associated with capital expenditure and R&D. You also need a good team of production workers, suitable premises, or some who can help with complicated import and export rules.
Year End Accounts need to be accompanied by a pre-year end planning meeting to help you identify tax and planning opportunities.
Along with all of the above you will probably want your Accountant and the finance team to take care of the following specific needs:
Key Strategies to add value and help your manufacturing business thrive
- Maintain strong and productive relationships with your existing clients and suppliers.
- Where possible, having long-term contracts in place will de-risk your business (but be careful about the terms you agree!)
- Wherever possible, diversify your distribution channels to reduce risk.
- Producing goods that differentiate on the service aspects of your products, not just on price to increase the perceived value of your overall offering.
- Investing in your brand can also generate positive returns.
- Keep ahead of developments in the marketplace and threats posed by rival products.
- Ensure your supply chain is managed to maximise profitability and minimise obsolescence (but be careful to avoid the risk of stock outages).
- Focus on quality, establish metrics and work to continually improve customer satisfaction.
- Ensure your key procedural knowledge is not maintained exclusively in the heads of individual employees, and document all procedures.
- Ensure that all client relationships are maintained by at least 2-3 company employees, wherever possible.
- Consider whether an upgrade to the existing asset base would enhance production or make your business immediately more valuable, (while bearing in mind the trade-off between the capital expenditure and sale price).
- Consider selling off assets that are not contributing to the profitability of your business, and invest the cash in other areas.
- Investigate the possibility of a sale-and-leaseback or relocation to leased premises, and how this could benefit your business.
- Ensure a robust succession plan is in place for when you or any of your key managers depart your business to maximise resilience and the potential value of your business.
