Inventory & COGS accounting
Monthly COGS calculated properly so margins are real, not estimated.
Manufacturing · Seattle & Tacoma
Inventory, COGS, and production-cost accounting for small manufacturers
Manufacturers need accurate inventory, COGS, and production-cost tracking to price products right — and to know which SKUs actually make money. Once inventory drifts from what's on the shelf, every downstream number (margin, cash, taxable income) is wrong. We keep the numbers behind every SKU clean so pricing and purchasing decisions are backed by real data.
Why manufacturing accounting is different
Manufacturing accounting has three moving inventory pools (raw, WIP, finished) plus indirect production costs (shop rent, foreman salary, utilities) that don't fit neatly in either COGS or overhead. Roll indirect costs the wrong way and your gross margin looks strong while your net crashes — or vice versa. The fix is a real cost accounting method (standard cost, weighted-average, or actual), applied consistently every month.
What we hear from manufacturing
- "Inventory value drifting from what's actually on the shelf"
- "COGS calculated once a year instead of monthly"
- "Raw materials, WIP, and finished goods lumped together"
- "Sales tax nexus questions as you ship to more states"
What we handle for manufacturing
Fluent in QuickBooks Online, inventory add-ons.
Raw materials, WIP & finished goods
Inventory categories tracked separately for accurate financials.
Production-cost tracking
Direct and indirect production costs allocated to the right SKUs.
Multi-state sales tax support
Nexus tracking and filing coordination as you scale.
Numbers we track for manufacturing
Every monthly report includes the metrics that actually drive decisions in your business:
- Gross margin by SKU or product family
- Inventory turnover (days on hand)
- Raw / WIP / finished-goods balances at month end
- Overhead absorption rate vs. actual
- Scrap and rework cost as % of production
Washington-specific for manufacturing
Washington offers a reduced manufacturing B&O rate (0.2904% vs. the standard 0.484% wholesaling rate) plus M&E sales tax exemptions for qualifying machinery and equipment. Most small manufacturers we onboard aren't claiming both — usually because their books don't distinguish manufacturing receipts from other revenue clearly enough. We restructure the chart of accounts so the exemptions apply cleanly and defensibly.
Common bookkeeping mistakes in manufacturing
We see these on almost every set of books we clean up. Fixing them is usually step one of onboarding.
- Using a single 'Inventory' account for raw, WIP, and finished — breaks any real cost analysis and hides slow-moving stock
- Not claiming the WA manufacturing B&O rate because receipts weren't categorized correctly at invoicing
- Expensing tooling and jigs immediately when they should be capitalized and depreciated
Manufacturing accounting — frequently asked questions
What Our Clients Say
74 five-star reviews from construction and real estate businesses across Washington
"Ruvim and his team have been great to work with. They're reliable, responsive, and provide accurate bookkeeping and payroll support. We appreciate their attention to detail and the outstanding work they do!"
"I worked with Ruvim and Ready Accounting for over two years and had a great experience. Ruvim is extremely responsible, reliable, and always on top of things. He built a great system that made reconciling all of our company accounts simple and organized, kept our filings on time, and helped us manage ACH payments to our trade partners smoothly. Ruvim is knowledgeable, responsive, and someone you can trust with the financial side of your business. Highly recommend Ready Accounting to any company looking for dependable and professional accounting support."
"Working with Ready Accounting has been smooth and stress-free. Ruvim is knowledgeable, responsive, and truly cares about your success. Highly recommend!"
"Ruvim is the best bookkeeper there is period. We have used several bookkeepers in the past but no one matched his level. I highly recommend using him."
"We have been with ready accounting for about half a year or so and let me say it's been amazing! Upon opening a business and hiring employees, there was so much things needed to be done where I had absolutely no clue how to do! A friend of mine recommended ready accounting and honestly never looked back! He does an amazing job and best of all, I don't have to do a thing! Thanks ready accounting for being trustworthy and amazing!"
"Ruvim is very organized, thorough and knowledgeable. Excellent communication skills, timely and cares about his clients and their business operations. Highly recommend!"
"Ruvim is an incredibly knowledgeable individual who consistently demonstrates responsiveness and helpfulness. Whenever I have questions, he promptly provides accurate answers, making him an invaluable resource for my business. His understanding of my business accounting needs is unparalleled, and he consistently delivers exceptional results. I wholeheartedly recommend him to anyone seeking reliable expertise and support."
5.0 rating from 74 Google reviews
Want the story behind the stars? Read real client case studies — including a Bellevue remodeler and a Tacoma developer.
Book a call with Ruvim
Tell us about your manufacturing business — we'll follow up to schedule a call, usually the same day.
Prefer to reach out directly? We answer most inquiries within a few hours during business days.
Email us
Info@readyaccounting.coCall us
(253) 367-3672