Manufacturing
Product manufacturers, breweries, distilleries, and fabrication shops where inventory, job costing, and production efficiency require financial oversight beyond basic bookkeeping.
The Industry
Manufacturing financials are different from service businesses. You have cash tied up in raw materials sitting on shelves. You have work-in-progress that’s partially complete. You have finished goods waiting to ship. Every stage represents money that hasn’t turned into revenue yet. A fabrication shop might have $200,000 in steel inventory while struggling to make payroll because the cash is trapped in material that won’t become billable for weeks.
Then there’s the costing problem. What does it actually cost to produce one unit? Direct materials are straightforward. Direct labor gets complicated when workers move between products. Overhead allocation is where most manufacturers lose visibility entirely. Machine maintenance, utilities, supervision, quality control. These costs exist whether you make ten units or ten thousand. Allocating them correctly determines whether you know your true margins or are guessing.
Who This Covers
Who This Covers
Product manufacturers, fabrication shops, food and beverage producers, breweries and distilleries, marine equipment manufacturers, specialty product companies. Any South Florida manufacturing operation where inventory, production costs, and job costing create financial complexity.
What Makes It Complex
What Makes It Complex
Multi-stage inventory tracking from raw materials through finished goods. Job costing that allocates labor and overhead accurately. Production run analysis showing actual versus estimated costs. Equipment depreciation and maintenance capitalization. Regulatory reporting for beverage producers. Cash flow management when significant capital sits in inventory.
What We Handle
Proper cost accounting starts with accurate inventory valuation. We ensure your raw materials, work-in-progress, and finished goods are tracked correctly on the balance sheet. Standard costs get established for products so you can measure actual production against expected costs and identify variances. When a production run comes in 15% over budget, you need to know whether it was material waste, labor inefficiency, or something else entirely.
Financial oversight at the controller level means your monthly financials reflect reality. Inventory counts reconcile to the books. Cost of goods sold reflects actual production costs, not just purchases. Gross margins by product line show which items drive profit and which ones drain it. For manufacturers seeking growth, we provide the financial foundation needed for equipment financing conversations, bank relationships, and strategic planning.
Cost Accounting and Inventory Control
Cost Accounting and Inventory Control
Inventory valuation across raw materials, WIP, and finished goods. Standard cost development for products enabling variance analysis. Job costing that captures direct materials, direct labor, and allocated overhead. Production run analysis comparing estimated versus actual costs. Month-end close procedures that properly value inventory and calculate cost of goods sold.
Financial Leadership for Growth
Financial Leadership for Growth
Monthly financial review identifying margin trends and cost issues. Cash flow analysis showing how inventory levels impact available capital. Equipment purchase analysis and financing strategy. KPI development tracking production efficiency, inventory turns, and gross margin by product. Financial statements prepared for bank presentations and equipment financing.
What Goes Wrong
Most manufacturing businesses have no idea what their products actually cost to make. They price based on competitor pricing or gut feel. Direct materials might be tracked, but labor gets estimated and overhead allocation is a guess. A product priced at $50 with an assumed 40% margin might actually have a 22% margin once all costs are properly allocated. You’re busy making things that barely break even while ignoring the products that would actually generate profit.
Inventory problems compound over time. Physical counts don’t match the books. Obsolete materials sit on shelves at full value. WIP jobs stay open for months because nobody closes them when production finishes. The balance sheet shows $300,000 in inventory but the actual usable inventory is worth $180,000. When it’s time to get a bank loan or value the business, these discrepancies create real problems. Bankers and buyers don’t trust financials that don’t tie out.
Margin Blindness
Margin Blindness
Products priced without understanding true costs. Overhead allocated arbitrarily or not at all. Labor tracked in total but not assigned to specific jobs or products. Production decisions made on revenue potential instead of actual profitability. High volume products that look successful but barely cover their costs.
Inventory and Balance Sheet Problems
Inventory and Balance Sheet Problems
Physical inventory disconnected from book values. Obsolete or damaged materials carried at full cost. Work-in-progress jobs that never get closed. Cost of goods sold that doesn’t reflect actual production. Financial statements that can’t withstand scrutiny from lenders or potential buyers.
What Changes
Every product has a documented cost structure. You know what materials go into it, how much labor it requires, and how overhead gets allocated. When raw material prices increase, you can model the margin impact immediately and decide whether to raise prices or absorb the cost. Production variances get identified and investigated while there’s still time to correct the underlying problems.
Inventory becomes a managed asset instead of a cash trap. You know your inventory turns and can identify slow-moving materials before they become obsolete. Financial statements reflect accurate valuations that hold up under bank review. Cash flow forecasting accounts for planned inventory builds and production cycles. When you’re ready to finance new equipment or expand the facility, the financials tell a clear story that lenders can trust.
Production Profitability Visibility
Production Profitability Visibility
Product-level costing showing true margins after all costs. Standard costs enabling variance analysis on every production run. Pricing decisions based on actual costs, not guesses. Gross margin reporting by product line identifying what drives profit. The information needed to focus production on your most profitable products.
Financial Foundation for Growth
Financial Foundation for Growth
Accurate inventory valuation that ties to physical counts. Monthly financials that close cleanly with proper cost of goods sold. Cash flow analysis showing inventory impact on working capital. Financial statements prepared for equipment financing and bank relationships. The controller-level oversight that positions your business for the next stage of growth.
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