How it runs for manufacturers and wholesalers
Then come the usual accruals, payroll, prepaids, depreciation on machinery and the sales-tax and exempt-sales workings. A LedgerBPO team runs every step on a CloseTrack checklist, reconciles each account and releases the package only after a second accountant signs it off.
What is month-end close outsourcing?
Month-end close outsourcing means an external accounting team performs the steps that turn a month of transactions into finished financial statements: reconciling every account, posting accruals, prepaids and depreciation, checking cut-off, reviewing and locking the period. You keep your software and your accountant. The provider runs the checklist on an agreed calendar and hands you reviewed statements.
What we handle for manufacturers and wholesalers
- Receipt and shipment cut-off applied by dock date and freight terms
- Goods in transit and un-invoiced receipts accrued to the right period
- Open work orders valued as work in progress with labor and overhead applied
- Inventory valuation reconciled to the ledger with variances explained
- Machinery depreciation, tooling amortization and prepaid entries posted
The KPI that matters here
Close completed and statements released by business day 7 with inventory reconciled.
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
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Frequently asked questions
What is the hardest part of a manufacturing close?
Cut-off. Goods received on the 31st without an invoice, shipments that left the dock but were invoiced on the 1st, and work orders half complete all move margin between months if they are not handled. We accrue receipts, apply freight terms to shipments and value open work orders as work in progress, so each month carries its own cost and revenue.
How do you value work in progress at month-end?
Open work orders are valued at the components issued to them plus labor hours recorded at your rate and an overhead allocation agreed with your CPA. That total sits in work in progress on the balance sheet until the order completes into finished goods. If your system does not track WIP, we estimate from open orders and document the method.
Can the close produce the exempt-sales and sales-tax workings too?
Yes, the close includes a report of taxable and exempt sales by state with certificate references for exempt customers, and the sales-tax liability reconciled to invoiced tax. Your preparer or Avalara files from those workings. The monthly financial reporting service for manufacturers & wholesalers presents the results with margin by product line.
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