The manufacturing operational system is arguably quite complicated. All stages carried out in manufacturing activities must refer to the Production Operational Standard (SOP). In Indonesia, manufacturing companies are also called factories because they are identical to the term where the manufacturing or fabrication process is carried out.
The manufacturing industry is related to the operation of machinery, equipment, and human resources to process raw materials into finished goods that have a sale value. For the purpose of improving business, manufacturing companies certainly need accurate data, one of which is financial data. Financial data reports on manufacturing businesses have complex needs so that it cannot be done by one person or a small group.
The Importance of Financial Software in Manufacturing Companies
Along with the development of technology, there are now a lot of software that can be used to facilitate financial reporting activities. The problem is, not all financial software can support and provide features for reporting to manufacturing companies.
One of the benefits of financial software in manufacturing companies is that it can provide more complete financial data. This is what makes the process of making financial statements faster. Debt management can also be easily resolved. No less important is the management of inventory and stock of goods easier because it runs automatically by the system. If your manufacturing company has several branches, financial software will simplify its management.
Mandatory Features in Manufacturing Company Financial Software
The way to determine the best financial software needed by a manufacturing company is to consider the features it has:
a. Have a complete inventory management system
As an entrepreneur engaged in manufacturing, you must monitor inventory well. In the manufacturing industry, inventory is divided into three types namely raw materials, semi-finished materials, and finished goods. Categorizing goods can help management make the right decision. Management can predict the stock of goods ready to sell for tomorrow by looking at the position of semi-finished goods now.
Companies that do not categorize semi-finished goods in the production process will experience a difference in calculation. The risk is that there is a loss in the calculation process. Make sure that the software you will use has this complete management feature.
b. Record the purchase and sale transactions to making invoices
The main activity of all types of businesses is buying and selling. Every buying and selling activity must be recorded in full and in detail. When every day there are thousands of transactions that require records, of course, it will be very complicated if done manually recording. This is the function of the transaction recording feature of the software that you install for the manufacturing company.
Records given by the seller to the buyer that contain information and prices of goods are called invoices. An invoice for a manufacturing company is different from a trading or service company because the purpose is also different. The automatic invoice printing feature will help you send bills professionally.
c. Record the costs and revenues of each department
The value of income and and burden on a company will help in preparing the income statement. If the result is greater than the cost, the company is said to be profit, and if it is smaller than the cost, the company suffers losses.
In a manufacturing company consists of several departments. Each department has its own recording of costs. Through financial software, you can categorize the costs of each department. Financial software is also able to categorize cost accounts such as raw material costs, labor costs, factory overhead costs, and cost of production.
d. Calculate depreciation
Each trip period, all physical assets of the manufacturing company are depreciated. Factory machinery and some office equipment such as computers, vehicles, and buildings must be shrinking. There are many methods for calculating depreciation values.
But you don’t need to worry if the financial software for manufacturing that you choose already provides this feature. Recording of depreciation expense and accumulated depreciation is very important because it will relate to the income statement and balance sheet.