Manufacturing Company

One of the basic terms to account for costs pertaining to the manufacturing environment is Cost of Goods Sole (COGS).  Additionally, we will also be paying close attention to both fixed and variable costs so that you will be able to ascertain where your costs are and where you maybe able to reduce them so your business profits can increase.

Additionally, careful consideration should be made toward Break-Even analysis so that as you increase the variety and number of manufactured items, you are making profits, not just building inventories.

With a manufacturing business, you will need to carry some amount of inventory in raw materials, Work-In-Process (WIP) and finished goods.  There will be several 'build' templates available to you so that you may create Bills of Materials (BOM) for your manufacturing line(s).  Additionally, there will be several selections available to you to account for inventory, number of manufacturing weeks, and so on.

For manufacturing companies, there are generally several types of financing available, such as purchase order financing, accounts receivable (factoring), equipment leasing, customer supplied inventories, etc.  Whether or not you are a contract manufacturer or building your own products, attention to cash flows will (should) be of continual focus on your part.