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Accounting Software and Inventory Management for Manufacturers

clock April 24, 2014 12:06 PM by author StephanieE

By Stephanie Elsen

Accounting Software and Inventory Management for Manufacturers

All businesses can benefit by implementing accounting software. Manufacturers have their own specific set of needs when it comes to setting up and maintaining an accounting system, especially when it comes to inventory. With the right system, a manufacturer can increase profits, streamline practices, and keep customers happy. Here are some of the most important features within an accounting system and inventory management for manufacturers, along with their benefits.

Assemblies

‘Assemblies’ is a term that refers to creating finished products from other component items in your inventory within your accounting system. Once you set up inventory components and organize which ones are used to create the finished item (“assembly”), you can move forward with production. You enter which assembly items to be produced, and the system will pull the necessary component items out of inventory, and let you know what is needed. (It will also show you whether you need to order any missing components.) Using assemblies helps you understand your profits, streamline your order management, and stay organized.

Bill of Materials

A bill of materials is a list of materials to be used for an assembly process. When you create a production plan to build your assemblies, the system looks at what you are building and then looks at the supplies that are needed for that plan. A bill of materials lists what is needed, and what is available or not available in your inventory.

Costing Method

User specified costing method, ranging from LIFO, FIFO, average or standard. Generally your accountant can help you determine the best costing method for your organization, and your accounting system should be set up accordingly.

Item Alias

Item alias refers to the ability to give inventory items alternative names for easier lookup of name variations. When you have a long list of inventory items, it can be difficult to remember exactly what each item is called. Setting up each item with an alias, or alternate name, can help you find inventory items in the accounting software more easily.

Physical Inventory Count

Taking a physical inventory count allows you to update your on hand quantities and adjust for accuracy. Accounting systems typically have a tool that allows you to print documents that aid in the process of collecting a physical inventory count.

Pricing Method

A pricing method allows you to specify, on an item by item basis, how to calculate the price of the item. Common pricing methods include: fixed price, markup based on cost, gross profit margin based on cost, percentage of base price, other. Your accounting system should accommodate the pricing system that works for how you calculate pricing for your products.

Serial/Lot Number Tracking

Certain types of products carry serial or lot numbers, and those numbers need to be tracked by the manufacturer. The ability to track serial and lot numbered items within your accounting program is more organized and more easily accessible than tracking them on a spreadsheet or by hand.

Multiple Units of Measure

If you purchase products in one unit of measure and sell in a different unit of measure, you will need to the ability for your accounting software to handle that capability. Managing multiple units of measure within your accounting software allows you to keep inventory numbers accurate and streamline the order entry process.

Make the most of your accounting system by using features that are designed to help manufacturers! CenterPoint Accounting Software has the tools manufacturers need to manage their inventory. Visit the CenterPoint Accounting Software product page to learn more.



IRS Audit Red Flags

clock January 22, 2014 8:25 AM by author StephanieE

Does the thought of an IRS Audit strike terror in your heart? Check out this list of IRS Audit Red Flags, written by Joy Taylor of Kiplinger's.

14 IRS Audit Red Flags



CenterPoint Accounting - Comments from Sharon at Chase City Tastee-Freez

clock December 5, 2013 9:39 AM by author StephanieE

By Stephanie Elsen

Red Wing Software recently received feedback from Sharon at Chase City Tastee-Freez. Wow, amazing comments and much appreciated!

Sharon has owned and operated Tastee-Freez Restaurants in Chase City and Wylliesburg, Virginia since 1985. In addition to being an experienced business owner, Sharon is experienced in managing accounting systems, having used many different accounting programs since the 1970s. Sharon has been using CenterPoint Accounting and Payroll since 2009. Here’s what Sharon has to say about CenterPoint!

“CenterPoint Accounting is extremely easy to use! When I purchased the software, I took all of the “Getting Started” online webinars Red Wing Software offers. These online courses offer extraordinary teaching, and I felt comfortable working in the program after completing them”

“I love the fact that I can correct a mistake, if I find one. For example, if I am balancing the checkbook and find an error, I can go right in and fix the mistake from there. Or if I put something in the wrong account, I can easily go back in and fix it, right from the report I am viewing. My accountant loves CenterPoint too. When he asks for any report at all, I can go into CenterPoint and easily get the information he has requested.”

“Payroll is also very simple, and I can complete payroll in one-third of the time it took with my previous payroll program. I appreciate the fact that I can reprint checks with the same check number, for example in the case that a check gets jammed in the printer.”

“Red Wing Software’s support is great, and if I ever have questions, I can just give them a call or else go online and find an answer. All of the updates to the program are fabulous and I have found them very useful.”

“I just love CenterPoint, and I will never change software! I recommend the software to other businesses whenever I can. It’s one of the best accounting programs I have ever used, and I have been doing accounting since the 1970s.”



2013 Tax Guide - Changes for Individuals and Businesses, by CPA Practice Advisor

clock December 3, 2013 3:25 PM by author StephanieE

Some good tax considerations for year end by CPA Practice Advisor.

2013 Tax Guide Highlights Changes for Individuals & Businesses



MSN Money Shares Year End Tax Tips

clock November 27, 2013 11:55 AM by author StephanieE

Here are some good suggestions by MSN Money about what to do with year end approaching!

MSN Money shares year end tax moves



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