This presentation covers all the information about manufacturing accounting, major challenges faced by business owners in the manufacturing industry and the resolutions of these challenges for managing the accounting tasks.

1. Accounting for Manufacturing Business:
Resolving Issues

2. What Is Manufacturing Business?
Manufacturing Businesses in Today's World are Normally Comprised of Machines,
Robots, Computers & Humans that all Work in a Specific Manner to create a Final
Product. This Business uses Different Components or Raw Materials to make Finished
Goods. These Goods can be Sold Directly to Consumers or to Other Firms those
Utilize them for Making Different Products of their use.

3. Issues In Manufacturing Business
Product Development & Innovation
The Manufacturing Skills Gap
Healthcare Costs
Finance & Accounting Issues

4. #1 Product Development & Innovation
Most of the Manufacturing Firms Come with a New Concept in the Market due to a
lot of Competition & Quality Disputes, However different other Manufacturers need
to be Stringent & Endeavor to avoid their Cutting Corners.
Implementing ways that Keep a Steady Stream of New Product Ideas & Innovations
in the Pipeline is Essential to Manufacturing Success.

5. #2 The Manufacturing Skills Gap
Skill Gap is the Main Issue that is Faced by Employee in Manufacturing Firms. The
Baby Boomer Generation is Reaching Retirement age & Leaving a Considerable Skills
Gap in the Workforce.
Thus, It’s Required to Imply New Technology & Scheme Cover this Skill Gap Between
Employees that affects higher Productivity Rate.

6. #3 Healthcare Costs
Rising Healthcare Costs for Workers is Putting a Considerable Strain on Delicate
Manufacturing Cost Structures.
Thus, Manufacturers Need to be Aware of this Rising Cost, & Shall Manage Budgets
to Ensure the Health issues doesn’t Push up the Price of Products Beyond
Commercial Viability – It can be a Balancing Act.

7. #4 Finance & Accounting Issues
Accountants who work for or with Manufacturing companies Face a wide range of
Challenges, Including Inventory, Ambiguity in ROI Calculation, Accuracy in
Compliance Procedures, Lack of Initiative for Outsourcing, Cost Estimation,
Difficulties in Implementation at Start Ups, Revenue Recognition & Industry-Specific
Issues. These Issues must be Recuperated by Implementing Different Strategies.

8. Resolving Issues: Manufacturing
Accounting
A. Proper Orientation Of Problem
B. Identify & Analyze the Type of Problem
C. Take Action with Appropriate Planning
D. Hire Outsource Service Provider

9. A) Proper Orientation Of Problem
“A Problem Clearly Stated is a Problem Half Solved”. It is important to Begin this
Problem-Solving Journey with a Clear, Concise Problem Statement. This Activity
Focuses on Obtaining Information to Clearly Demonstrate that the
Problem does exist. The Output of this Activity will be a List of Evidence Statements
to Illustrate that the Problem Exists, its Size and the Chronic Nature of it.

10. B) Identify & Analyze :Problem
Clarify, Identify & Analyze the Type of Problem, that will Help you out to find the
Suitable solution. Once the Implementation Plan is written, the team should do a
Force Field Analysis on factors pulling for and factors pulling against a successful
implementation – success in the sense that the results seen in the test situation will
be realized on a permanent basis once the solutions are implemented.

11. C) Action With: Appropriate Planning
Identify the Specific Situations with Relation to each of the Assets. It is clear from
the Wording that each Asset is to be Treated Differently. As shown by the Differing
Levels of Output, the New Manufacturing Equipment will be Utilized Differently Each
Period.
It would be Appreciable to use the Straight-line Method to Solve Problems

12. D) Hire Outsource Service Provider
In Manufacturing business there are Some activities those can be Considered as
Non-Core but Vital. It is Suggested for Startups to Outsource Such Responsibilities
like Bookkeeping, Accounting, Tax Preparation, Data Management etc.
It allows your Business to Focus on Revenue Generation & Core Activities, Instead of
Worrying about Issues Related to Managing Non-Core Processes.

13. Major Tasks: Manufacturing Industry
1) Management of Compliance
2) Supply Chain Management
3) Manufacturing Accounting & Finance

14. 1. Management Of Compliance
Compliance Management is a Methodology Designed to Protect & Enhance Business
Value by Fostering a Regulatory Risk-Aware Culture.
The Essential Requirement for any Effective Compliance Management Program is the
Training of Employees on the Regulations and Policies that Apply to their Job
Responsibilities.

15. 2. Supply Chain Management
Supply Chain Management (SCM) is the Oversight of Materials, Information, and
Finances as they move in a Process from Supplier to Manufacturer to Wholesaler to
Retailer to Consumer.
Supply Chain Management Involves Coordinating and Integrating these Flows Both
Within and Among Companies.

16. 3. Manufacturing Accounts & Finance
Accounting Provides the Financial Framework for Analyzing the Results of an
Executed Set of Decisions & Makes Possible the Continuous Success of a Business or
Improvement in Operations.
The Management Accountant Provides a Knowledge of Basic Decision-Making Tools
that Helps find the Best Alternative in Decision-Making.

17. Benefits: Outsourced Accounting Services
 Better Cost Control
 Minimize the Fluctuations in Staffing
 Increases Concentrate on Core Competencies
 Enhance Financial Flexibility
 Access to New Technology & Outside Expertise

18. *Better Cost Control
Companies Usually Outsource to a Vendor that Specializes in a Given Function &
Performs that Function more Efficiently than the Company could, Simply by Virtue of
Transaction Volume. Outsourced Function is the Best Way to Realize Better Cost
Control or Savings. An Outsourcing Company can Bring Better Management Skills to
your Company.

19. *Minimized Staffing Fluctuations
Outsourcing is Suitable way to Achieve Headcount Reductions in Staffing that May
Occur due to Changes in Demand for a Product or Service.
Companies also Outsource in Order to Reduce the Workload on their Employees, or
to Provide More Development Chances for their Employees by Freeing them from
Tedious Tasks.

20. *Increased Focus on Core Activities
Manufacturing Companies Outsource in order to Eliminate Distractions & Force
Themselves to Concentrate on their Core Competencies.
Outsourcing can free the Entrepreneur from Tedious & Time-Consuming Tasks like:
Accounting, Bookkeeping etc. so that they can focus on Sales, Marketing, all the
other things that matter more.

21. *Enhance Financial Flexibility
It helps to Achieve Greater Financial Flexibility, Since the Sale of Assets that Formerly
Supported an Outsourced Function can Improve a Company's Cash Flow.
Outsourcing allows Businesses to Find & Choose a Suitable Provider who can
Complement their Own Business Structure & Processes.

22. *New Technology & Outside Expertise
Most of the Companies which may not be able to Afford to Hire Computer Experts or
Develop the In-House Expertise to Maintain High-Level Technology.
When such Tasks are Outsourced, the Business Gains Access to New Technology that
can Help it Compete with Other Companies.

23. References:
https://en.wikipedia.org/wiki/Advanced_manufacturing
https://www.cogneesol.com/financial-and-accounting
https://www.cogneesol.com/manufacturing-accounting-services
http://study.com/academy/lesson/what-is-a-manufacturing-business-definition
http://www.wiley.com/legacy/products/worldwide/canada/bcs/pstech/solution

24. Accounting Services Offered By
Cogneesol
Cogneesol is a Business Outsourcing Company based out of US that Offers the Most
Reliable and Impressive End-customer Experiences Offering wide range of
Accounting Services For Manufacturing Firms Covering Bookkeeping Services, Profit
& Loss Statement, Balance Sheet Reporting, Accounts Payables & Receivables,
Financial Analysis, Tax Preparation Services & many more.

25. Cogneesol
30 Wall Street, 8th Floor
New York, NY 10005-2205
Contact Number: +1 646 688 2821
Email: info@cogneesol.com