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Accounting for Manufacturers
Having an accountant who understands your manufacturing business can provide significant benefits.
The truth is, running a manufacturing business in Australia is tough given the high labour costs. Not only that, there are complexities such as managing inventory and costs, tracking customer orders, managing pending builds and assemblies plus identifying which orders have shipped. If you import components or export your finished goods you also face the volatility of the Australian dollar.
Over the past two decades we have mentored a number of manufacturers through the various stages of their business life cycle, from start up right through to sale. As you'll see below, we are not your average firm of accountants who just keep the score and we offer manufacturers a range of accounting, tax and business coaching services to support and grow your business.
STARTING A MANUFACTURING BUSINESS
We are recognised as business start-up specialists and if you are looking to start or buy a manufacturing business there are numerous issues to consider. There is site selection, tax registrations, insurances, the factory lease and fit out and finance. We can assist you in all of these areas plus provide advice on HR matters, payroll and the preparation of a business plan.
Over the past two decades our team of accountants have helped a number of manufacturers get their business off to a flying start. We offer you experience, technical tax knowledge and most importantly, an intimate understanding of the manufacturing 'game'.
Starting a business is a bit like building a house and you need solid foundations. In a business sense these include the right tax structure, accounting software, insurances, a marketing plan, website and social media channels. Your choice of business structure is critical and there are a number of different options including a company, sole trader, partnership or trust. When selecting a business structure, asset protection is a key consideration as well as your family situation, forecast level of profit and your future plans to admit new business partners and your eligibility for discount capital gains tax concessions.
Your choice of accounting software is another brick in your foundation wall. The wrong choice can be catastrophic and poor financial records are one of the biggest causes of business failure in this country. Up to date, accurate financial records let you make informed business decisions.Your software program needs to match your business needs with your level of accounting skill because too many business owners use sophisticated double entry accounting programs and produce nothing but 'computerised shoebox' records. One of our priorities is to help you cut the cost of compliance which in some cases includes training you to use the software. We support a number of programs and have a strong preference for cloud based solutions like Xero.
To build a house you also need the right tools and when 'constructing' your business we have developed a number of tools including a
start-up expense checklist broken down into various categories including:
- leasehold improvements
- factory fit out expenses
- information technology costs
- marketing and signage
- equipment and machinery
- raw materials
These figures then slot into a cash flow budget template that let us produce a forecast of your first year's trading results. If you need to finance the purchase of a vehicle in your business we can assist you with finance by chattel mortgage or lease through one of our affiliate partners. Not only that, you can access fleet pricing on your new car, ute or light commercial van that could save you thousands of dollars.
Through our affiliate partners we can also help you source funds to finance your business purchase, factory fit out, equipment or machinery. Pricing is absolutely vital to the success of your manufacturing operation and we can help you do some price modelling so you know your break even point and understand the financial implications of price increases by your suppliers. We also use benchmarks to compare your business performance against your industry peers so you know what is working in your business, what's not working and what needs working on.
MARKETING YOUR MANUFACTURING BUSINESS
For small business owners, your marketing can be the difference between gloom, doom and boom.
Most manufacturers rely on their reputation and referrals to grow their business and while these ingredients remain important, you need to shift your marketing focus online. Increasingly local searches like 'steel manufacturer melbourne' are driving traffic to your website which is often the first touch point with a potential new customer. As you know, you only get one chance to make a good first impression and your website is your silent sales person working 24/7 to promote your business.
One of our biggest points of difference compared to other accounting firms is our marketing expertise. We can assist you with your branding (business name, logo and slogan), your corporate brochure and help you harness the power of social media to win more business. Over the past few years we have worked with dozens of clients to help them create affordable, quality lead generation websites that are responsive to smart phones and tablets. We can provide advice and guidance with your website content including video production and if your website lacks calls to action or lead magnets we'll help you build them. In addition, we'll introduce you to strategies like re-marketing and search engine optimization to drive more traffic to your website.
If you aren’t using some of these marketing techniques your business probably won't reach its full profit potential.
The marketing process begins with your branding and we have worked through the process with dozens of clients over the years and using some online resources we can help you build a modern brand that resonates with your target market. We can even help you develop your stationery at a fraction of the cost of engaging a graphic artist or marketing consultant.
Our role includes helping you understand the Four Ways to Grow A Business and in the process, identify the key profit drivers in your business. We can talk you through various profit improvement strategies and even quantify the profit improvement potential in your business. Our role is to make sure you don't leave any profit on the table.
Our mission is to help you grow your business, your profits and your wealth using a full range of accounting, tax, marketing and business coaching services including:
- Start-Up Business Advice for Manufacturers
- Advice regarding the Purchase or Sale of your Manufacturing Business
- Spreadsheets and Tools including a Start-Up Expense Checklist, Business Plan Template and Cash Flow Budget.
- Provide Advice and Assistance with the Establishment of Your Business Structure (sole trader, company, trust, partnership etc.) taking into account issues like Asset Protection and discount Capital Gains Tax Concessions
- Business and Tax Registrations for ABN, TFN, GST, WorkCover etc.
- Preparation of Business Plans, Cash Flow Forecasts and Profit Projections
- Accounting Software Selection and Training – Bookkeeping, Invoicing, Payroll and Costing
- Preparation of Finance Applications
- Preparation and Analysis of Financial Statements
- Bookkeeping and Payroll Services
- Income Tax Returns and Tax Planning Strategies
- Wealth Creation Strategies and Financial Planning Services
- Industry Benchmarking and KPI Management
- Vehicle & Equipment Finance (Chattel Mortgage & Lease)
- Monitoring and Controlling Labour and Sub Contractor costs
- Advice & Assistance with Pricing and Claiming Car Costs
- Recession Survival Strategies
- Advice regarding Employee Relations and Workplace Laws
- Business & Risk Insurances
- Business Succession Planning
We are different to most traditional suburban Melbourne accounting firms. We pride ourselves on being business and profit builders who provide a full range of accounting, tax and business coaching services to manufacturers and business owners from all around Australia. If you are starting a manufacturing business or want to take your existing business to the next level, call us today on (03) 9500 8666.
If you're a committed and ambitious manufacturer looking to accelerate your business success we invite you to book a FREE, one hour introductory consultation to discuss your plans. You can expect practical business, tax, marketing and financial advice designed to help you build your business and grow your wealth. To book a time, contact us today on (03) 9500 8666 or complete your details in the box at the top right hand side of this page.