Accounting software is not only used by small or medium businesses but can also be used by the manufacturing industry. The fast flow of goods turnover in the manufacturing industry also requires financial or accounting software.
But before choosing, you need to pay attention to 5 important aspects of accounting software. These five aspects serve to be your guide if you work in a manufacturing company and intend to use accounting software.
Accounting software is not only used by small or medium businesses but can also be used by the manufacturing industry. The fast flow of goods turnover in the manufacturing industry also requires financial or accounting software.
But before choosing, you need to pay attention to 5 important aspects of accounting software. These five aspects serve to be your guide if you work in a manufacturing company and intend to use accounting software.
Able to Calculate Cost of Goods Sold (COGS)
Manufacturing companies are companies engaged in managing raw materials into semi-finished goods, or semi-finished goods into finished goods that are ready to be distributed and consumed.
In processing or conversion from raw materials to finished goods, you need to monitor and determine the cost of goods sold or the cost of good sold.
With accounting software, you can monitor and analyze the efficiency of costs and raw materials for finished goods and determine prices based on costs incurred.
In addition, in the conversion of this item, the cost of goods sold will be automatically calculated and recorded in the balance sheet and budgeting.
Able to Provide Fixed Asset Reports
As is well known, manufacturing companies need manufacturing equipment where the entrepreneur is obliged to calculate the depreciation value of the tool. Professional accounting software or accounting applications for the manufacturing industry are able to create fixed asset reports, one of which is the accumulated depreciation of manufacturing tools.
Depreciation of assets is important to be known by companies, especially businesses engaged in manufacturing that use many tools and machines. Knowing the depreciation of an asset gives you the value of the business. Usually the value of assets recorded in the journal will exceed the value it should be so that the recorded business profit is also higher than what is there.
Second, you know the exact useful life of the asset. When do you have to replace with new assets, how many production capabilities at one time. In addition, knowing the depreciation of assets also helps you in calculating the taxes that must be issued.
Accounting Software that Has Stock Management
As previously mentioned, the manufacturing industry has a very high flow of stock turnover . Without automation, manufacturing businesses will find it very difficult to monitor the flow of turnover .
Make sure when you choose accounting software, stock management features such as; stock taking, setting SKU ( stock keeping unit ), calculating and making reports of the outflow of goods you must consider.
Has a Proforma Invoice Making Feature
In the production chain, usually manufacturing companies are at the supplier level. Most of the manufacturing companies usually make raw materials or parts of finished products. Therefore, a company that acts as an important supplier is able to make a proforma invoice or proforma invoice .
Proforma invoice is a document that is given to consumers or clients before the goods / services arrive or are used. So that consumers can estimate expenses in the transaction. The proforma invoice is different from the offer letter. The proforma invoice is issued when a transaction agreement has occurred so that the information on the proforma invoice is absolute and non-negotiable.
For suppliers, the proforma invoice is very important because the company can estimate the number of goods to be produced. Therefore, a good accounting software must have features for making proforma invoices as well as regular invoices.
Able to Track Company Debt and Receivables
Finally, the most important thing about accounting software for manufacturing businesses is the software’s ability to create accounts payable reports and track the age of accounts payable.
Because the flow of production turnover in manufacturing companies is high, the activities of accounts payable are also increasing and tend to be difficult to track if only using conventional methods.
Accounting software must be able to provide accounts payable and receivable information such as payment limits, invoice names and numbers, nominal, to items of origin of accounts payable, for example from division A, project B work, or branch office C.
Those are five important aspects in choosing manufacturing accounting software. These five aspects are related to work and also things that often and may happen in the manufacturing industry so that all jobs are easy to do.
