Manufacturing

In manufacturing businesses the centre of gravity of accounting is not the tax return but cost. If the cost of a product is not calculated correctly, both your profit and your tax burden come out wrong. For that reason stock and cost are run as a separate heading in manufacturing files.

Stock and cost

• Raw materials, auxiliary materials, work in progress and finished goods are tracked separately.
• Direct materials, direct labour and manufacturing overheads are separated; the basis for allocating overheads to products is decided together with you.
• Your wastage and spoilage ratios are compared period by period; if there is an unusual deviation, the reason is raised.
• Your period-end count is compared against the records and the source of any difference is investigated.

Investment and depreciation

When machinery, plant and fixtures are recorded, the useful life and the depreciation method are determined. If you hold an investment incentive certificate, purchases within its scope are tracked separately and the record structure required for the VAT exemption, the customs exemption and the reduced corporate tax rate is set up.

Personnel and workplace

In businesses with shift work, overtime or a collective agreement, payroll is checked separately. If you have more than one production facility, a separate social security workplace file is opened and tracked for each.

Also monitored

• Withholding where you give or take subcontract manufacturing work
• Consistency of production cost with the input VAT list if you export
• Your R&D expenditure and the conditions for any related deduction