Digital Accounting in the Manufacturing Sector

Technological advancements have significantly impacted business operations, and digital accounting has become a useful tool for the manufacturing sector. This article explores the benefits and features of digital accounting, tailored specifically for manufacturers.

What is Digital Accounting?

Digital accounting allows businesses to manage their financial data on cloud based systems, storing it securely on remote servers. This ensures accessibility from any location, real-time financial tracking, and enhanced collaboration among team members. The shift to cloud-based systems offers numerous advantages, including automated backups, secure data storage, and streamlined financial management.

Benefits for the Manufacturing Sector

  • Real-Time Financial Tracking: Digital accounting provides manufacturers with up-to-date financial information, enabling better decision-making and financial planning.
  • Collaboration and Integration: Manufacturers can easily collaborate with accountants and financial advisors, integrating various business processes within a single platform.
  • Scalability and Flexibility: Cloud-based solutions can grow with your business, offering scalable options that adapt to changing needs and demands.

Building an App-Stack

Most digital-based accounting software features an open API (Application Programming Interface), which allows different software applications to communicate with each other. This enables the integration of various specialised apps for enhanced functionality. This collection of integrated apps is commonly referred to as an “app-stack.” Here are some examples:

  • Dext Prepare: Streamlines receipt and invoice processing, reducing manual data entry.
  • Dext Commerce: Connects e-commerce platforms like Shopify and Amazon with accounting systems, ensuring seamless sales data integration.
  • Integrated Payroll: Automates payroll management, including pension filings and salary payments.
  • Bank Feeds: Automatically syncs bank transactions with your accounting software for efficient reconciliation.
  • Debt Management Apps: Tools like Chaser and Satago automate debtor tracking and collections.

Sector-Specific Solutions

Manufacturers can benefit from specialised apps tailored to their unique needs. One such example is Cin7, a comprehensive inventory management software. Cin7 offers real-time inventory tracking, purchase order management, and multi-location management. It integrates with various sales channels, providing a unified view of inventory levels and automating workflows to enhance efficiency. With features like barcode scanning and customisable SKUs, Cin7 helps manufacturers optimise inventory operations and reduce costs.

Stock/Inventory Management

For more advanced needs, manufacturers may consider larger accounting systems, such as Sage Intacct. Sage Intacct is an ERP (Enterprise Resource Planning) system that provides robust financial management capabilities, including advanced inventory and stock management. It offers features like detailed inventory tracking, automated workflows, and comprehensive reporting, which are essential for large-scale manufacturing operations. Sage Intacct’s integration capabilities ensure that all business processes, from procurement to sales, are seamlessly connected, providing a holistic view of the company’s financial health.

Implementing Digital Accounting

Transitioning to a digital based accounting system may require planning, training, and sometimes the help of a specialist. However, the benefits far outweigh the initial efforts. Manufacturers can start with basic functionalities and gradually incorporate more complex solutions as their business evolves.

Digital accounting offers numerous advantages for the manufacturing sector, from real-time financial tracking to seamless integration with specialised apps. By leveraging these tools, manufacturers can enhance efficiency, improve accuracy, and gain a competitive edge in the market. For tailored advice and implementation support, consult with your accounting professional or reach out to our digital team.

For more information on digital accounting solutions, contact our experts at Carpenter Box.