Manufacturing accounting that actually reconciles to your shop floor
Production-run tracking, ERP software integrations, raw-to-finished inventory valuations done right, and the cross-border duties and sales-tax filings. Built for modern manufacturers scaling across borders, managing complex bills of materials, and balancing multi-currency supply chains.
Trusted by Thousand of Organizations
.png)
.svg)
.png)
.jpg)
Navigating the nuances: Where general accounting meets Manufacturing reality
Manufacturing operations run on a complex operational ledger that standard accounting frameworks simply fail to capture. Generic bookkeepers merely match physical bank deposits to basic invoicing software and assume your numbers are complete. That high-level approach completely misses the critical variance in floor costs, scrap rates, and component overhead that dictates your factory's true gross margin.
The challenges that compound:
Your monthly bank deposits rarely reflect your true production performance. Shifting material deposits, bulk raw material procurement, and delayed customer fulfillment timelines heavily distort your real-time profitability if they are not tracked systematically.
Without allocating direct labor hours and factory machine overhead directly into your bill of materials (BOM), you cannot see which production runs are highly lucrative and which ones are actively eating away your cash.
We implement clear separation between raw stock, work-in-progress (WIP), and finished inventory valuation, deploy integrated factory floor tracking systems, provide granular unit-by-unit margin analysis, and deliver automated tax compliance across North American borders.
Specific challenges manufacturing founders bring to us
Inventory asset values on our books don't match the warehouse floor
Almost always because raw materials, work-in-progress (WIP), and finished goods are not being systematically tracked as they move through production phases. We rebuild your inventory capture systems—ensuring raw stock hits the balance sheet, converts to WIP during assembly, and only records to COGS upon final shipment. Reconciliation finally works.
Selling via DTC, wholesale, and B2B we can't tell which is profitable
Retainers, creative projects, performance marketing, production—multiple offerings with different cost structures make it hard to evaluate true service margins. We restructure your chart of accounts to break down income and direct contractor/labor expenses by service line, giving you precise contribution margin data to optimize your pricing.
Component costs are messy and product margins jump every month
Usually because raw material purchase spikes are recognized on a cash basis upon receipt instead of being amortized as components are consumed, or because shipping landed costs aren't factored into unit values. We rebuild inventory accounting through proper ERP integrations, accurately locking in your Bills of Materials (BOM) so margins stabilize monthly.
Scrap and production variances aren't tracked and our margins look fake
For factories with variable yield rates, failing to log waste material, machine downtime, and labor overhead overstates operational efficiency and gross margin meaningfully. We calculate your true manufacturing variance, book scrap adjustments as operational liabilities, and update your unit costs monthly so your financial reporting matches real floor yields.
Typical engagement structure
For manufacturing brands under CAD/USD $1M revenue: core ledger bookkeeping integrated with standard inventory tracking, standardized monthly closing, and fundamental unit-level margin reporting.
For manufacturing brands CAD/USD $1M–5M revenue: comprehensive inventory bookkeeping combined with controller oversight, delivering multi-channel margin analysis, raw/WIP/finished good valuations, and multi-jurisdiction tax filings.
For manufacturing brands CAD/USD $5M+ revenue: complete controllership coupled with outsourced CFO guidance, covering production cash flow management, supply chain asset-based financing analysis, factory board packs, and capital raises.
Tools we use
Frequently asked questions
We’re new to manufacturing. Should we even use an MRP system like Katana yet?
If your production runs are simple and revenues are under $1M, managing assemblies via spreadsheets or basic bundles in QuickBooks/Xero can work. As soon as you track multi-level Bills of Materials (BOM), raw material stock, and batch numbers, a dedicated MRP system saves hundreds of hours. We help you transition before manual sheets break down.
What about complex supply chain structures like contract manufacturing or co-packers?
We build out your accounting workflows to seamlessly track inventory across multiple physical and virtual locations. Whether you purchase raw materials and ship them to a third-party co-packer, or buy finished goods directly under an OEM model, we ensure your asset values and raw stock tracking remain perfectly accurate.
We use a 3PL for our multi-channel distribution — does that change your scope?
Not at all, but it transforms how we sync data. We focus on integrating your 3PL platform directly with your inventory ledger or MRP tool. This ensures that inventory adjustments, retail order fulfillments, and wholesale warehouse shipments automatically match your actual cost of goods sold (COGS) in real time.
Do you work with manufacturers navigating cross-border custom duties and US state nexus?
Yes. Shipping physical freight across the US-Canada border introduces complex state sales tax nexus, provincial tracking, and customs duty costs. We help clear up the confusion by setting up automated cross-border sales tax engines and accurately capitalizing import freight/duties directly into your unit product costs.
Running a manufacturing brand that's outgrown generic production-run bookkeeping?
Book a 30-minute call. We'll walk through your warehouse floors, your inventory values, and whether this is the right fit.