Utilize the Power of Numbers in Your Manufacturing Business

manufacturing industryGrowing the Business is Job One

The technological advances in manufacturing accounting software has allowed early adopters of these systems to experience superior business growth without a concomitant need to add either staff or to make other riskier investments. Still, it is crucial to determine the exact integrated accounting system that your company needs. There are various factors involved. In addition to the overall cost of ownership, a potential buyer should also consider the functionality of the software, how it affects your employees and most importantly, your clients.

Expanded Software Capabilities

Generic accounting programs can only take your company so far. Industry-specific ones, on the other hand, offer any number of predetermined – and customized! – functionalities. Typical features include printing checks, paying bills, tracking expenses, managing the overall payroll on the expense side as well as creating orders and invoices, managing receivables, establishing budgets and performing bank reconciliations on the revenue side. At the reporting level, the number of customized reports that can be generated is almost endless.

From the manufacturing-process standpoint, integrated software can also lend a significant boon to your company. These systems can manage everything from material requirements planning and work order management through purchasing and inventory control to production scheduling and work in progress tracking. Once your product is finished, a properly chosen accounting system will also help with scrap and defect tracking as well as quality control.

Understand Every Metric

As you undoubtedly already understand, manufacturing is a relatively low-margin endeavor with particularly good overall revenue because of volume. Gaining any insight into key performance indicators – whether on the factory floor or in the back office – can make the difference between a marginal or even unprofitable quarter and a spectacular one. Also, it should be obvious that it is next to impossible to improve a manufacturing process if you are unable to measure it in any meaningful way.

An integrated manufacturing accounting software program provides this ability and more. It will allow you and your entire staff – not just those at the C-level – to share information across the entire enterprise. Effortlessly plan production runs and manufacturing controls with both the purchasing and the sales departments, coordinate receivables and their delivery dates as well as forecast future “over and under” stocking ratios. In addition, the right program will be unmatched by any manual system in forecasting revenues and expenses.

The Competitive Advantage

As mentioned above, the smallest of advantages accrue to the manufacturing process of a company and, when combined in total, can deliver exceptional results. Unfortunately, unlike service companies who can rely on local providers, a pure manufacturer must have a global vision and reach.  Manufacturing-specific accounting software provides a systematic and practical approach to data management that can establish a significant competitive advantage. In particular, they must develop a group-focused effort that provides for the discovery, refinement, and adoption of best practices across the entire spectrum of operations.

The Next Step

With dozens of software solutions on the market – all designed specifically for certain niches in the manufacturing market – finding the right one can seem a daunting and time-consuming task for almost any business owner. Whether you are looking for a complete Enterprise Resource Planning (ERP) application or simply a functionality upgrade to an existing system, investigating your options is the first step.

To compare and contrast features within manufacturing accounting software products check out our Quick Compare Tool or narrow your search even further by using our Software Selector Tool.