Upfront Conclusion
The best accounting software for manufacturing businesses right now is Netsuite and Freshbooks.
Accounting is a necessity for every business. Whether you’re a big or small manufacturing company, you need good accounting procedures to succeed in your business. You might be very good at the products you offer for your customers but see accounting as a big headache. You need not be an accountant to do your business accounting.
All you need is to choose the right accounting software for your manufacturing business and the rest of the job will be done for you by the app. But the truth is there are many accounting software out there that sifting through the market may be very difficult for you. If this is you, you need not panic as we have your back!
In this guide, we have compiled the list of the best accounting software for manufacturing businesses and you will go no wrong choosing one of our picks.
What Is a Manufacturing Business?
You probably have heard about the manufacturing business before but wondering what makes it different from other types of businesses. Well, there is a difference worth noting especially when it comes to accounting for a trading business and a manufacturing business.
We shall look at these differences in the latter section but let’s talk first about what a manufacturing business is all about.
So what exactly is defined as a manufacturing business?
A manufacturing business is any business that produces goods for people to buy. In manufacturing finished goods that a company will sell to a customer, raw materials and other components are required. And the production of such goods could be accomplished using hands or machines, depending on the level of companies involved.
Most big companies use machines for almost all their production processes while some small businesses and startups make goods by hand. For such small businesses, their productions are always on a smaller scale when compared to big companies that employ sophisticated machines and skilled labor in the production of their goods.
The Peculiarities In Accounting For Manufacturing Business
Accounting for a manufacturing business isn’t totally the same thing as with accounting for other industries. In the manufacturing business, for example, attention is focused on inventory valuation and cost of sales. Although the same concepts are applicable in retail accounting there are some little differences worth noting for a manufacturing business owner.
In manufacturing accounting, three types of inventory exist and each of these inventories tends to change throughout a financial year of the business. And for this reason, it’s important you understand each one of them and then keep good track of them so you wouldn’t have any complications in your accounting.
1. Raw Materials – These are the basic materials from which your products are made. They are the primary components used in the production of goods. If you make clothing, your raw materials could include cotton, wool, cellulosic fibres, bast fibres, leather, etc. And if you make skincare products, your raw materials could include calcium, sulfur, potassium, zinc, selenium, iron, and sodium. In a simple word, anything used in the final production of your finished goods or products is known as a raw material.
2. Work-In-Progress – This refers to the raw materials that are neither in raw form nor yet a finished product as at the end of the business’ financial year. For companies whose products don’t have a long production cycle, they’re most likely not going to have work-in-progress inventory. In calculating WIP, there are other elements to take into consideration such as cost of raw materials, labor, and indirect expenses, otherwise known as overhead costs.
Also, you can have a beginning and ending WIP in manufacturing accounting. Where this is the case, you need to determine the difference between the opening and closing WIP before arriving at the production cost. In other words, opening WIP is to be added while the closing WIP should be deducted from the production cost.
3. Finished Goods– This is the end result of either your raw materials or Work-In-Process. They are the goods that are already in a completed state for consumption and so are ready for sale to consumers. There are three elements that constitute finished goods such as raw materials, labor, and overhead expenses.
In manufacturing accounting, two costs are identified namely direct and indirect (overhead) costs. Direct costs are those costs that can be directly related to the creation of your products. Some goods examples here include direct labor, direct materials, cost of maintaining machinery, etc. Indirect costs, on the other hand, are costs that can’t be directly related to the production of your products. Examples are insurance, supervisor salaries, quality control costs, etc. Indirect costs are also referred to as burden costs.
The Basic Objectives Of A Manufacturing Account
You know quite well that you need to prepare a manufacturing account for your business but don’t know the primary objectives for that. A manufacturing account is prepared purposely to determine the cost of producing the finished goods of a business.
This cost is one of the key elements you need to transfer to your trading account so you determine your profits at the end of a given period.
Best Accounting Software For Manufacturing Businesses
| Brand | Starting price | Best for |
|---|---|---|
| 1. NetSuite ERP | $499.00/month | All-inclusive |
| 3. FreshBooks | $15/month | Simple to use |
| 2. Zoho Books | $15/month | Streamlining all business transactions |
| 4. Sage | $12/month | Inventory Management |
| 5. Saral Accounts | Rs. 7500/licence | Retail business or manufacturing industries |
| 6. TallyPrime | $630.00 – $1,890.00 | Keeping track of business performance |
| 7. BigTime | $10 – $40/month | Integration |
| 8. Bench Accounting | $159/year | Bookkeeping and financial reporting |
| 9. ProfitBooks | $15/month | Small manufacturers and professionals |
| 10. Tradogram | $18/month | Manufacturing industry |
| 11. Vyapar Accounting | Rs. 1,999/year | Small businesses |
1. NetSuite ERP
NetSuite ERP is all-inclusive manufacturing software that offers all the business management essentials for manufacturing businesses. From customer relations management to marketing, from financials to supply chain management, and from commerce to order management, NetSuite offers a complete solution that will impact tremendously on your business.
As a manufacturing company, you need accounting software that will streamline your financial management and meet your accounting needs. NetSuite helps you manage all the key financial aspects of your business including expenses and revenue so you can have a real-time picture of your business performance. With this tool, you can rest assured there will be team spirit among your employees and you can all collectively work from one central source of finance, revenues, and customer data.
What We Like About About NetSuite ERP
- Effective cost management capabilities
- Scalable billing scheduling
- Smart inventory management
- Real-time financial reporting
- Easy to use depreciation management features
- Audit trail visibility
Pricing
Getting started with NetSuite costs $499.00 per month and there is no free version.
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2. FreshBooks
FreshBooks is a reliable cloud-based accounting software that efficiently manages and tracks your manufacturing records, inventory, and finances. FreshBooks lets you track and manage your expenses and revenue, automate recurring payments, create and customize invoices, automate payment reminders, and keep track of all your manufacturing invoices. It also has a time-tracking feature and an intuitive user interface.
What We Like About FreshBooks
- Powerful invoicing capabilities
- Integrations. FreshBooks lets you integrate up to 100 third-party apps and tools into your FreshBooks account.
- One-click generation of financial statements.
- Ease of use
- Excellent customer support. FreshBooks offers responsive phone, email, and live chat support.
Pricing
FreshBooks offers 3 plans: Lite plan ($15/month), Plus plan ($25/month), and Premium plan ($50/month). It equally has a custom plan that is available on request. It also offers a 30-day free trial on all plans.
3. Zoho Books
Zoho Books is a cloud-based accounting software that offers excellent functionalities and features for manufacturing businesses. Zoho Books lets manufacturing businesses meet their accounting needs and easily track and manage their records and finances. Manufacturing businesses can use Zoho Books to manage their inventory, track expenses, create invoices for customers, and even set up payment portals for customers.
What We Like About Zoho Books
- Ease-of-use. Zoho Books is user-friendly, and it doesn’t require expert accounting knowledge.
- Incredible customizability and flexibility.
- Affordability. Zoho Books is very affordable and even has a Free plan for businesses with less than $50,000 annual revenue.
- Automations. You can easily automate work processes and schedule recurring payments.
Pricing
Zoho Books offers 3 plans: Standard plan ($15/month), Professional plan ($40/month), and Premium plan ($60/month). It also has a Free-forever plan for small manufacturing businesses and a 14-day free trial on all plans.
4. Sage
Enterprise resource planning (ERP) software that was used in the past worked well. You can now manage operations, guarantee the supply of constant quality, and seize new business prospects with the aid of Sage X3 software, which was developed especially for manufacturing companies.
You have control over work order specifics and better insights into your production expenses with Sage customized manufacturing accounting software, allowing you to identify areas for spending reduction and accelerated cost savings.
What We Like About Sage
- Inventory, sales, customer support, finances, and workflow management are all handled by a single system.
- Control business purchases, cash flow, and procurement
- Work together across sectors, nations, numerous sites, languages, and legal frameworks
- Utilize budgeting, cost accounting, and general ledger to control financial operations.
Pricing
Sage Accounting doesn’t offer free edition but they offer a free trial. Their pricing plan starts at $12.00 per month.
5. Saral Accounts
Saral Accounting is an awesome accounting and billing software that is packed with exciting features such as e-invoicing, accounts books, voucher entry, and financial statements. Whether you’re in the retail business or manufacturing industries, the software has you covered. Also, Saral has inventory and MIS reports functionalities for you to stay up to date with your business management.
What We Like About Saral Accounting
- Ease of use
- Ease of configuration to suit various merchandising and service-oriented organizations
Pricing
Saral offers different pricing plans ranging from Saral Bronze to Saral Silver, and from Saral Gold to Saral Diamond. You can check out their official website here for further information.
6. TallyPrime
It’s very important to know how well or bad your business is doing at every point in time. You can only have a clear picture of your business performance if you’re keeping track of it. With TallyPrime, you’re in total control of your business as you’re provided with automated bills payable and receivable management, accurate tax computation, and insightful reports.
What We Like About TallyPrime
- Insightful and customizable business reports
- Simplified inventory management
- Tax-compliant invoices
- Better cash flow management
Price
TallyPrime offers two pricing plans, which are TallyPrime Silver and TallyPrime Gold. The TallyPrime Silver starts at $630.00, while the TallyPrime Gold costs $1,890.00.
7. BigTime
Time they say is money. This is very true for any business that wants to succeed. BigTime is a precious accounting software with amazing features such as time tracking, project management, billing and invoicing, reporting and analytics, and resource allocation, among many more. As a time tracking app, the tool provides you with simplified timesheets that make submitting expenses and time easy for you.
As a web-based accounting software for manufacturing business, BigTime supports integration with other third-party solutions thereby making it easy for you to connect the app to any software of your choice that is already working for you.
What We Like About BigTime
- Easy integration with third-party software
- Real-time reporting and analytics
- User-friendly dashboards
Pricing
BigTime offers different pricing plans such as Express, Pro, and Premier. The Express plan starts $10.00 per month, while the Pro costs $30.00 per month, and the Premier goes for $40.00
8. Bench Accounting
Bench Accounting is a web-based accounting service for every manufacturing business looking for a better way to simplify their bookkeeping and financial reporting. Apart from being the most preferred professional bookkeeping service for most small businesses in the US, it’s the most helpful tool when it comes to getting accurate tax preparation, filing, and uninterrupted tax advisory support.
With Bench Accounting, you’re provided with visual reports showing all your monthly financial statements and costs overview so you’re in the loop of your business performance.
Good accounting software shouldn’t restrict your access to vital business information, Bench accounting gives you all the access you need to your bookkeeper and business information on the go. By this, you can access your business information on your desktop and on your mobile devices with a single click.
What We Like About Bench Accounting
- Valuable service and professional support
- Accurate visual reports
- Affordable bookkeeping services
Pricing
There are different pricing for Bench accounting services such as Starter, Micro, Boutique, Venture, and Corporate. The Starter plan is priced under $159 billed annually, the Micro and the Boutique cost $199 and $249 respectively when billed annually, while the Venture and the Corporate go for $299 and $419 respectively when billed annually.
9. ProfitBooks
ProfitBooks is an online accounting solution designed to help traders, wholesalers, accounting professionals and small manufacturers keep track of their revenue and expenses, manage taxes and journal entries and generate tax reports for their businesses. It also doubles as simplified manufacturing inventory software for those without any accounting background. This way, you can easily manage your inventory workflow and be on top of your manufacturing process.
What We Like About ProfitBooks
- Easy-to-use inventory software
- Professional invoice generation
- Accurate tax reports capability
Pricing
You can start with ProfitBooks free but to have access to their SMB plan, it costs $15 per month.
10. Tradogram
Tradogram is designed for businesses in the manufacturing industry to take full control of their procurement process, prevent quality inconsistencies, cut down costs, and improve their procurement documentation.
What We Like About Tradogram
- Ease of use. This simplifies the procurement process and saves you precious time that should have been wasted on onboarding your employees.
- Affordability. It’s inexpensive for all budgets.
- Flexibility. This makes it easy for you to configure the system to suit your business needs.
Pricing
Tradogram offers three pricing plans including basic, premium, and enterprise. The Basic plan is free; the Premium plan starts at $18 per user per month, while the Enterprise plan is available on request.
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11. Vyapar Accounting
Vyapar Accounting is a free GST billing and accounting software designed for small businesses. It comes with an inventory tracking app that makes tracking all items of your business completely easy and quick. This way, it lets manufacturing organizations track their inventories using parameters like expiry date, batch, manufacturing date, etc.
Also, the Vyapar’s cash flow feature helps you track your payments and the GST billing feature lets you set a reminder to alert your customers before the payment due date. This ensures rapid recovery of your due payments and it all comes free of charge
Filling taxes is another key aspect of your business that you need to get done in the right way. Again, Vayapar Accounting helps in this aspect by providing a free GST filling app. Depending on the nature or applicability of GST to your business, the Vayapar’s GST filling app will help you generate appropriate and accurate GST reports for your business leveraging its GSTR1, GSTR2, GSTR3, GSTR4, and GSTR9. With this feature, you will be tax-compliant and then avoid any tax-related penalties.
What We Like About Vyapar Accounting
- Free android app to access Vayapar accounting
- Free billing software
- Highly-compliant GST filling app
Pricing
Vayapar offers different pricing plans for their desktop and mobile version. You can check out their official website here for more information.
Wrapping Up On Best Accounting Software For Manufacturing Business
All in all, you understand what a manufacturing business is and why it can be different from other business industries. You should consider the nature of your business and what features or accounting needs will most suit your business before choosing accounting software.
And don’t forget there are many accounting solutions to choose from and sifting through the market can be a daunting task you don’t want to go through. So, save yourself precious time by going through the list above and make an informed decision of the one you think will be most suitable for your business needs.
Read More
- Project Management Software for Manufacturing
- Manufacturing Execution Systems
- Manufacturing ERP Software
- Accounting Software For Inventory Management
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