How we think about manufacturing
A manufacturer's profit sits in its inventory until the day the goods ship. If raw materials, work in process, and finished goods are not counted and costed properly, the monthly profit figure is little more than a cash summary. We build the close around a reliable inventory number.
Langley's industrial businesses cluster in two places: the Gloucester Industrial Estates in the northeast of the Township, and Northwest Langley. Many are owner-run shops that started with one machine and now carry a second shift, a loan or lease on equipment, and customers who pay on 30 to 60 day terms.
What makes the books different
- Inventory and work in process. Raw materials, partly finished jobs, and finished goods are valued each month from counts or your inventory system, not estimated at year-end.
- Equipment financing. Loans and leases on machinery are recorded with principal and interest split correctly, and equipment is listed for capital cost allowance.
- Production machinery and PST. Some equipment used in manufacturing may qualify for a PST exemption. Your CPA confirms what qualifies; we keep the purchase records to support it.
- Receivables on terms. Customer balances and any credit insurance or factoring are tracked, because cash flow depends on who pays and when.
What a monthly close looks like for you
You send the month-end count or an inventory report, along with sales and purchase records. We reconcile bank, cards, and loans, post the inventory and work-in-process adjustment, and report gross margin by product line or customer. By the 10th you have margins and a receivables list you can act on.
Tools we commonly use for manufacturing clients
QuickBooks Online or Xero as the ledger. An inventory or manufacturing add-on where your volume calls for one, linked to the ledger. Dext for supplier bills. Plooto for paying suppliers in batches.
Partners we work with
We work with CPAs experienced in manufacturing inventory and capital cost allowance, equipment lenders and leasing companies, and, for larger operations, a fractional or full-time controller as you grow. Partners are described by type, not by name.
A good fit if
- You fabricate, assemble, or distribute physical goods and carry inventory
- You finance or lease equipment and want those loans recorded properly
- You want monthly margin by product or customer, with a controller available as you grow