Accounting is a complex process with many variables. Many of us think of an accountant as a person with the skill sets to “keep the books” or “know taxes”. While keeping the books and understanding taxes are very important, not all accountants perform the same duties.
You may have heard of staff accountants, bookkeepers, project and cost accountants, management accountants, forensic accountants, and certified public accountants or “CPAs.”
It is important to understand the different types of accountants to ensure you find the best one for your business. While each of these types of accountants are important for their various specialties, for the purpose of this post, we are going to primarily focus on CPAs who deal in manufacturing or manufacturing CPAs.
What is a Manufacturing CPA?
“After years of economic uncertainty, manufacturing is on the rise—a trend that is forecast to continue in the coming years. Businesses and consumers are spending more, resulting in higher demands for manufacturing companies to fill.”
A manufacturing CPA, sometimes called a manufacturing accountant, will understand the unique challenges your manufacturing company faces, and they will be better equipped to help you navigate ever-changing markets, taxation, and changes in business laws impacting financials that may not be as readily apparent to a non-manufacturing CPA specialist.
Overview of Manufacturing CPA Services
Understanding what a manufacturing CPA does in theory is a nice conversation topic, but a rich understanding of what their daily duties consist of can make a huge difference in how your company benefits from working closely to a manufacturing CPA.
The day-to-day duties of a manufacturing CPA include keeping a watchful eye on the gross margins of products used by and created for your company. This includes inventory, overall value, production, import and export data, maintenance, freight and shipping, accounts (payable and receivable), and other data management. Generally, weekly, monthly, and semi-annual spreadsheet reports are maintained to present this data to the necessary CEO, CFO or supervising personnel.
Hiring a Manufacturing CPA
You have worked hard to build your company from the ground up, or you have dedicated your life to working to the current position you hold in your company, so being tasked with hiring a manufacturing CPA is not an assignment you take lightly.
When it comes to hiring a manufacturing CPA, there are a few key things to keep in mind.
- You want to ensure your candidates have earned a bachelor’s degree in finance, accounting, or a field that specializes in financial management.
- These candidates should also demonstrate a narrowed interest in auditing, accounting systems, cost accounting, or taxation.
- Narrow your search by individuals with an employment history that demonstrates expertise in: skilled labor flux, market trends, business regulations, IRS demands, purchasing equipment, expansion or mergers, materials, personnel development, and succession planning
What To Do if You Are Ready To Hire a Manufacturing CPA
Hiring a CPA with expertise in manufacturing can help your business by providing specialized knowledge. Need help? Please feel free to contact us and begin the process of finding the best manufacturing CPA for your company.