Chart of Accounts for manufacturing
Like most businesses, a manufacturing company will have sales, purchases, and general overheads. This business type will also have the following considerations:
- Raw materials
- Stock assemblies
- Work-in-progress
- Finished goods/closing stock
In addition to the common account categories used by all business types, such as insurance, bank charges, and accountancy fees, the following chart of account categories could be used within manufacturing.
Additional chart of account categories for Profit and Loss:
Important Note
*Traditionally, employee costs fall within your expenses (overheads) – part of payroll costs. Where an employee is paid to manufacture an item that will be sold to customers, the employee time is a cost that is directly associated with sales. Therefore, these costs should fall within the Cost of sales.
**Adjustments for work-in-progress will be required to account for...