Manufacturing Accounting Solutions
Baker Tilly’s manufacturing accounting solutions are customized to fit your organizations needs and help you establish an industry-leading finance culture.
Manufacturing Accounting Solutions
The modern manufacturing chief financial officer (CFO) faces expanded responsibilities, from staying competitive to navigating technological advances like automation, artificial intelligence (AI), inflation and costing pressures that challenge the bottom line.
Today, the demands of a CFO go well beyond preparing the annual financial statements or filing an annual tax return. While some manufacturers are capable of handling these new challenges, many do not have the capacity to effectively manage all projects and responsibilities. Baker Tilly's tailored manufacturing accounting solutions are designed to fill this gap.
Customized solutions for manufacturing CFOs
Whether overwhelmed by current demands or inheriting a fiscal mess, manufacturing CFOs can benefit from working with Baker Tilly’s team of industry professionals. Our manufacturing accounting solutions are tailored and bundled to each organization’s needs and goals.
Financial statement accuracy
In addition to preparing annual financial statements, CFOs establish financial accounting processes and maintain an internal controls environment — the combination of the business’s structure, policies, processes and standards that together move a business toward reaching their goals. They must monitor the overall accounting system performance to ensure it is running smoothly.
Treasury management
CFOs are responsible for establishing and monitoring a working capital structure — ensuring the company’s assets and liabilities maintain a sufficient cash flow to keep up with short-term operating costs and debt — as well as establishing a system for debt and equity management.
Tax management
While monitoring and managing federal tax implications of the business, a CFO must also oversee state and local tax compliance for income, sales and use taxes. A CFO must also have a pulse on how to qualify for and earn unique credits as they become available through tax reform to bring cash back into the organization.
Financial planning and analysis
The standard financial planning and analysis duties include establishing budgets for financial planning and performance measurement. CFOs must also establish and distribute internal reporting to keep other departments knowledgeable of the business’s finances, as well as look to the future for financial forecasting and projections of where the company is heading.
Cost and profitability management
Inventory accounting processes and standards are often pain points in manufacturing with so much inventory to track. CFOs monitor manufacturing plant and supply chain performance, assessing commodity costs and risks to stay within budget. It helps to monitor pricing practices and create policies to manage revenue performance.
Investment and decision support
CFOs must determine cash-flow allocation guidelines so it is clear what can be invested and when. They also create a framework for evaluating new product or customer decisions, as well as the need for discontinuation of products or customers. When capital is required to expand physical footprint, the CFO must take the reins on ensuring the validity the financial projections used to fund the project.
Technology
As automation and AI evolve, they present both opportunities and risks. While automation can streamline repetitive tasks in both production and finance, staying current on best practices can overwhelm executives. Our team leverages industry-leading best practices to recommend solutions that keep you competitive. The implications of AI must be consistently evaluated from the financial perspective of the organization to identify opportunities for process improvement or risk mitigation.
Data enablement
The CFO is seen as the ultimate score keeper in middle market organizations, so finance must be involved in the development of data and analytics tools with reliable, timely information to support the company. With rapid technological advancements, selecting and implementing the right ERP system is a challenge. CFOs, as key players in middle-market organizations, ensure that the ERP system provides reliable, accurate and timely data and analytics.
Why outsource?
Manufacturers face ongoing pressures from inflation, rising interest rates and escalating costs that threaten profitability. With borrowing costs higher than in recent years, CFOs are under more pressure to manage working capital and fund capacity expansion. Our manufacturing accounting solutions, developed through years of experience, help CFOs establish efficient inventory processes, monitor plant and supply chain performance, assess commodity risks and ensure profitability even in challenging times.
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Our manufacturing specialists
Our manufacturing accounting services are tailored to your organization’s needs. Our team understands the complex responsibilities of a manufacturing CFO and customizes systems to accommodate business nuances. Whether you're tackling new challenges or optimizing existing processes, Baker Tilly supports you in building an industry-leading finance culture.
