How it runs for manufacturers and wholesalers
Reports come from closed, reconciled books in QuickBooks Online Advanced, Sage Intacct or NetSuite, so the lender package, the CPA's file and the owner's view are the same numbers.
What is outsourced financial reporting?
Outsourced financial reporting means a remote accounting team prepares your periodic financial statements and management reports instead of an in-house controller. The team works from your own accounting file, applies a consistent close and review process, and issues a report pack on a fixed date each month. You keep the data, the software and the decisions.
What we handle for manufacturers and wholesalers
- Gross margin by product line, customer group or channel after landed cost
- Inventory by stage: raw materials, work in progress and finished goods, with turns
- Receivables aging and days sales outstanding against terms
- Standard-cost variances: purchase price, usage and overhead absorption
- Lender covenant and borrowing-base figures sourced from the closed books
The KPI that matters here
Report pack issued within 2 business days of the close with a written variance note.
Manufacturing compliance notes
Sales-tax exemption certificates
Resale certificates, manufacturing machinery and equipment exemptions and direct-pay permits each exempt a sale only when a valid certificate is on file at the time of sale or obtained within the state's grace period. We collect certificates at customer setup, store them against the customer record, track expiry dates and produce an exempt-sales report with certificate references for every period. Your preparer or Avalara files the return; we prepare the workings.
Cost of goods sold and inventory valuation
Inventory must be valued on a consistent method, whether FIFO, weighted average or standard cost with variances, and cost of goods sold must include the costs your CPA determines are inventoriable under IRS §471 and, above the gross-receipts threshold, §263A. We apply the method your CPA sets, reconcile the inventory system to the ledger monthly and document every adjustment, so year-end is a review rather than a rebuild.
Landed cost and import duty
Customs duty, tariffs, freight, insurance and brokerage on inbound goods are part of inventory cost and reach expense only when the goods are sold. We allocate these costs to receipts in Cin7, NetSuite or your ERP and post the same allocation in the ledger, so margin by product reflects what the goods actually cost to put on the shelf.
Multi-state nexus for wholesalers
A wholesaler with customers across states may have economic nexus in states where it makes no taxable sales, and still owe registration and returns to report exempt sales. We track sales by ship-to state and flag thresholds so you and your advisor can register where required. We do not give tax advice; we supply the numbers.
Manufacturing software we work in
- QuickBooks Online
- Sage Intacct
- Sage 50
- NetSuite
- Xero
- Bill.com
- Avalara
- Cin7
- Katana
- Fishbowl
- All 50 platforms
More for manufacturers and wholesalers
Other services for manufacturing
Financial reporting in other industries
Frequently asked questions
Can you report margin by product line if my ledger only has one sales account?
Yes, item-level sales and cost come from Cin7, NetSuite or your inventory system, and we combine them with landed-cost and variance adjustments from the ledger to produce a margin table by product line or family. The ledger's summary accounts stay simple while the management report shows where margin is made and lost.
What is overhead absorption and should I report it?
Overhead absorption is the share of factory rent, utilities, supervision and depreciation added to each unit produced through the overhead rate. If production is lower than the rate assumed, overhead is under-absorbed and appears as a variance. Reporting it shows whether your standard costs still reflect reality. Wholesalers without production usually do not need it.
What do lenders want to see from a manufacturer each month?
Typically a P&L, balance sheet, receivables aging, inventory summary and a covenant or borrowing-base certificate calculated from those figures. All come from the closed books so they agree with each other. The KPI dashboards service for manufacturers & wholesalers adds a weekly view of the same measures for the owner.
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