Operating a manufacturing company in the U.S. is not just about producing goods. You need to control raw materials, keep track of inventory, plan production, pay employees - and most of all - maintain your finances in order. That is where QuickBooks can actually help.
Many manufacturers in the US utilize QuickBooks for their accounting requirements. However not all QuickBooks versions are produced equally. For manufacturers, QuickBooks Accounting for manufacturing business and Wholesale includes unique capabilities to allow you to streamline your everyday job, save some time and make better choices.
This article describes how QuickBooks Business assists manufacturing companies, what features are essential, and the way it is able to aid in efficiency and growth.
Why is Accounting Different for Manufacturers?
Before we move on to QuickBooks, let us first understand exactly why manufacturing companies require various accounting tools than a department store or maybe a law firm.
Manufacturers handle things like:
- Raw materials - the components & materials you make use of to construct your product.
- Work in progress (WIP) goods which are being worked on but aren't carried out.
- Finished goods - the finished products which are sold.
You also track labor costs, machine time, production schedules and inventory levels in maybe more than a single warehouse.
So, basic accounting software isn't sufficient. You need tools that are built with manufacturing in mind.
Features that Make QuickBooks Business the Top Choice for Manufacturing Companies
Let’s look at the features that make QuickBooks Business the top choice for manufacturing companies:
1. Pre-Made Manufacturing Chart of Accounts.
If you initially open your small business in QuickBooks, it asks you what sort of business you have. If you choose "Manufacturing and Wholesale," QuickBooks generates a chart of accounts for you automatically. This lists all of the categories in which money comes in and goes out - sales revenue, price of items sold, payroll, inventory, and tools.
This saves time. You don't have to build it from scratch. You may also build it to fit your business.
2. Tracking Bill of Materials In production.
A Bill of Materials is similar to a recipe for your product. It lists the components, materials, and steps which go into building one thing.
QuickBooks enables you:
- Create BOMs for every product and manage them.
- Follow the cost of every component.
- Update costs anytime prices change.
- Add overhead and labor to your product cost.
This tells you exactly how much it costs to make each item in order to price it right and maintain decent margins of profit.
3. Available to Promise (ATP).
Ever had a client ask "Can you order this product by next week?" and you did not know if you had sufficient inventory? That's where Available to Promise helps.
One click and you see:
- How many things you have in stock.
- How many are already sold (on sales orders).
- What comes in from suppliers (on buy orders).
- What's reserved for current builds.
This means your sales force can inform customers when they'll get their order with no overpromising or risking delays.
4. Custom Pricing for customers.
Not all Customers are alike. Perhaps you give better prices to large buyers or loyal customers.
With QuickBooks Business, you could :
- Different price levels for different customers.
- Give discounts by quantity or customer type.
- Apply the right price automatically when making an invoice or selling order.
This saves time and also prevents mistakes brought on by manual price changes. It really works great also for developing customer relationships.
5. Multiple Shipping Addresses.
Some buyers - such as retail chains or companies with several locations - might want products delivered to various locations.
With QuickBooks Business, you could :
- Save several shipping addresses per customer.
- Pick the proper address when creating a sales order.
- Add new addresses when required.
This makes your deliveries accurate and on time - especially in hectic seasons.
6. Key reports for manufacturers.
QuickBooks includes built in Reports for manufacturers. These keep you on top of stock, sales, and production requirements.
Some helpful reports include:
- Inventory Valuation Summary - shows all inventory held.
- Inventory Stock Status by item - displays how much of each Item you own and if it's gone to production or sales.
- Assembly Shortage by Item - shows what parts you need to construct a build to prevent delays.
You may also generate custom reports to examine profit margins, labor costs, or best selling products.
7. Backorder Tracking.
Sometimes customers buy much more than you have in stock. Or your suppliers are sending parts late.
QuickBooks helps by:
- Displaying backordered items on sales orders and buy orders.
- Tracking what's owed to customers.
- Notifying you when items arrive so you can complete shipments.
This helps in communication with customers and preventing missed deadlines.
8. eCommerce Integration.
When you market online with Amazon, Shopify, or WooCommerce, QuickBooks Business links directly to these systems.
This means:
- Product sales, refunds and inventory updates are automatically synced.
- No more having to re-enter orders or data.
- Fewer errors and saved time.
This particular feature becomes particularly important as more U.S. manufacturers embrace online sales.
9. Payroll and Time Tracking (Optional Add ons).
Many manufacturers employ hourly workers or track labor hours per job.
QuickBooks offers:
- Built in payroll tools.
- Time monitoring tools to clock employees in and out.
- Integration with job costing to assign labor to particular products or builds.
This helps you understand your true labor costs and also follow tax rules.
10. Cloud access.
Though QuickBooks Business is a desktop software, many U.S. businesses utilize cloud hosting solutions to Access it remotely. This provides the very best of both worlds:
- The power of desktop software.
- Flexibility to work from anywhere.
Cloud hosting also includes security, data backup and easier collaboration with accountants or remote teams.
Also Read | QuickBooks Online Accounting Services for Small Business
Conclusion
In case you own or run a U.S. manufacturing business, you are aware how essential it is to be profitable, efficient, and organized. You can do that with QuickBooks Business for Manufacturing.
From tracking materials and labor to controlling pricing, shipping and customer orders, QuickBooks Business handles the specifics of manufacturing accounting. It cuts down on time, cuts mistakes and also offers you more insight into your business so you can concentrate on growth.
Regardless of whether you operate a small family-owned shop or maybe a mid-size manufacturer with several warehouses, QuickBooks Business will help you with your operations and your finances.
