Category: Content

Key Takeaways: Streamline Your Assembly Costs

• Embrace automation: Incorporate robotics to reduce labor dependency and enhance assembly precision, as demonstrated by General Motors’ 22% cost reduction.
• Streamline the supply chain: Focus on efficient logistics from supplier to warehouse to reduce inventory costs and speed up operations. Dell’s just-in-time system exemplifies this efficiency.
• Invest in energy efficiency: Adopt technologies like LED lighting and energy-efficient motors, significantly reducing operational costs. IKEA has seen notable savings with these technologies.
• Apply lean manufacturing: Implement principles that focus on eliminating waste and continuously improving processes, similar to Toyota’s renowned production system.
• Utilize advanced analytics: Employ data-driven insights for optimizing production and reducing downtime. Amazon’s use of predictive maintenance showcases the potential savings.

Did you know that companies can waste nearly 20% of their production costs due to inefficiencies in their assembly processes? In today’s market, characterized by tight margins, this highlights a significant challenge that industries must address: optimizing assembly to improve profitability. This piece aims to provide a series of practical strategies that can transform assembly line performance.

As technology continues to advance rapidly and the emphasis on sustainability and efficiency grows, businesses find themselves in a crucial position. Companies worldwide are working to reduce costs while maintaining consistent quality. To accomplish this, they are adopting a variety of strategies, with the latest trends focusing on artificial intelligence, sustainability, lean logistics, and lean manufacturing to stay competitive.

Our guide is not just a collection of tips but a comprehensive plan for transforming your production processes. We break down complex concepts into simple, actionable steps in an informal and accessible manner. Our goal is not only to educate you but also to inspire you to implement meaningful changes. We share examples from major corporations like General Motors and IKEA to illustrate the real-world benefits of these methods.

Get ready to discover strategies for making your assembly line faster, more cost-effective, and more efficient than ever.

1. Utilize automation and robotics

Manufacturing has been revolutionized by automation. The once-dependable labor force has been minimized, and assembly refinement has been seized at an unpublished height. Robots, via means, expedite the process rhythm but also verify its legitimacy. Hence, blunders and miscalculations are sidestepped. Labor-cost saving ostensibly survives in this altered landscape, as does its adjacently shared ill-erroneous outlay saving. An insightful case is that of General Motors, which has revoked 22% of its expenditure bill by disguising robots along its manufacturing assembly line.

Practical applications of automation and robotics

Incorporating robotics into assembly lines isn’t just about replacing human labor; it’s about creating a synergy where machines handle repetitive tasks, and humans focus on more complex, value-added activities. For example, robotic arms can be programmed for tasks like welding, painting, or assembling components, which are traditionally labor-intensive and prone to human error. This speeds up the production process and ensures consistent product quality, reducing the need for costly do-overs.

2. Enhance management of the supply chain

Efficiently managing the supply chain is crucial in cutting assembly costs because by smoothing the process from supplier to warehouse, companies can lower inventory costs and speed up operations. By getting better deals with suppliers and using just-in-time inventory systems, the supply chain can be made more efficient, ensuring that parts arrive precisely when they are needed without incurring extra storage costs. For example, Dell has streamlined its supply chain to deliver custom-built computers quickly, thereby cutting down assembly and storage costs.

Streamlining supplier relationships

Managing your inventory isn’t the only way to optimize your supply chain; you must also build strong ties with your suppliers. Suppliers and companies can work together to ensure materials meet quality standards and are provided on time. For example, vendor-managed inventory (VMI) systems let suppliers directly control stock levels, which can cut down on wait times and help keep production from being held up.

Table: Summary of Strategies to Cut Assembly Costs

Strategy	Key Benefit	Example
Automation and Robotics	Reduces labor costs and increases precision	General Motors reduced costs by 22%
Optimize Supply Chain	Minimizes delays and reduces inventory costs	Dell’s just-in-time inventory system
Energy-Efficient Technologies	Lowers energy consumption and costs	IKEA’s energy management systems
Lean Manufacturing Principles	Eliminates waste, enhances productivity	Toyota’s continuous improvement
Advanced Analytics	Optimizes production and reduces downtime	Amazon’s predictive maintenance

3. Invest in energy-efficient technologies

Using energy efficiently is crucial since it’s a big part of assembly costs. Investing in technologies like LED lighting or energy-efficient motors can significantly reduce energy use and costs. Companies like IKEA have adopted energy-efficient factory methods, leading to notable cost savings and environmental benefits.

Energy-efficiency case studies

Automated systems that turn off equipment when not in use or during off-peak hours are a practical example of an energy economy in action. Companies such as Tesla have installed advanced energy management systems in their facilities, greatly lowering their energy costs and environmental impact. Another example is the installation of solar panels in manufacturing plants, which, while initially expensive, can lower long-term energy costs and contribute to objectives relating to sustainability.

4. Implement the principles of lean manufacturing to cut assembly costs

The only constant in business is change. Many continually look for new ways to produce more with less and without lowering the quality. Companies can get a distinct advantage over competitors by leveraging the latest innovations, improving their supply lines, and embracing ideas like the Lean Manufacturing mindset.

Lean production concentrates on limiting various forms of waste while increasing productivity. It helps companies eliminate needless activities, making everything work more smoothly and affluently. Contemporary lean businesses conform to the pull, rather than push, principles when fulfilling customer orders. Such companies work with small batches and eliminate overproduction. They also reduce set-up times, work in cells, set low reorder points, and have small and friendly relationships with suppliers. Toyota has been a noted pioneer in these methods.

Lean manufacturing in real operations

Lean manufacturing principles have been successfully applied in companies like Toyota, where they originated. These principles focus on reducing the “seven wastes” (defects, overproduction, waiting, non-utilized talent, transportation, inventory, and extra processing). Toyota has set new benchmarks for the industry by constantly improving processes and eliminating waste.

5. Employ advanced analytics to optimize production

Nowadays, modern analytical tools can reveal comprehensive insights into production systems that can enable the detection and resolution of any hindrances. By effectively implementing predictive models in maintenance practices and employing statistical algorithms for machine learning, companies can empower themselves to optimize the manufacturing process and eliminate downtime, thus providing a chance to decrease expenditures. Amazon previously called on data-crunching to reshape its distribution center and fix idling workers or inconsistent queues.

Advanced analytics in action

Advanced analytics can be seen in the use of real-time monitoring systems that track production metrics and alert managers to anomalies that could indicate problems. For instance, if a machine starts operating outside of its normal parameters, analytics can prompt immediate maintenance, preventing costly breakdowns and production halts. Moreover, predictive analytics can forecast future demands and adjust production schedules accordingly, optimizing resource utilization and minimizing waste.

In Closing

In closing, the journey to cutting assembly costs isn’t just about implementing new technologies or streamlining processes; it’s about adopting a mindset of continuous improvement and innovation.

By embracing automation, enhancing supply chain management, investing in energy-efficient technologies, applying lean manufacturing principles, and utilizing advanced analytics, businesses can substantially reduce their production expenses while boosting efficiency. Each strategy highlighted in this article, from General Motors’ integration of robotics to Toyota’s dedication to lean manufacturing, serves as a testament to the transformative power of these approaches.

As we move forward, let these successes inspire you to rethink your production strategies and make smart, impactful changes that reduce costs and propel your company toward a more profitable and sustainable future. About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

As an enthusiastic business owner, you constantly seek out novel ways to enhance your revenue streams and broaden your enterprise. One highly effective strategy to achieve this is employing the art of visual merchandising, which can work wonders in captivating your customers with visually striking product displays. This approach elevates your customers’ shopping experience, amplifies your sales potential, and reinforces your brand identity. Integrating this technique into your business plan can create a more immersive and profitable path to long-term business growth.

What is Visual Merchandising?

Creating engaging and visually appealing displays is essential in retail marketing. This is where visual merchandising comes in, as it aims to capture customers’ attention and entice them to explore products or services further. A well-executed visual merchandising strategy creatively showcases the brand’s identity and enhances the overall shopping experience for the customers. Careful consideration of product placement, lighting, color, texture, and signage is crucial to creating a cohesive, inviting atmosphere that aligns with the brand’s vision and values. 

These components include:

Window displays

Your window display is the first thing that customers see when they approach your store. An eye-catching, well-designed window display can attract customers and draw them into your store. A good window display should reflect your brand’s personality, be visually appealing, and be updated regularly to keep customers engaged.

Store layout

A well-designed store layout is essential to creating a positive customer shopping experience. Your store should be easy to navigate, with products organized logically. Customers should be able to find what they are looking for quickly and easily. The store layout should also encourage customers to explore and discover new products.

Lighting

Lighting is a crucial component of visual merchandising. It can set the mood, highlight specific products, and enhance the shopping experience. Proper lighting can draw attention to products and create a welcoming atmosphere.

Product placement

How you place your products can have a significant impact on sales. Products should be placed in a visually appealing way and easy to access. Different techniques like color blocking, pyramid displays, and focal points can create interest and draw attention to specific products.

Signage

Signage is an essential part of visual merchandising. It should be straightforward, easy to read, and reflect your brand’s personality. Signage can be used to highlight promotions, direct customers to specific products, and create a cohesive shopping experience.

Branding

Your brand is what sets you apart from your competitors. It is essential to incorporate your branding into your visual merchandising strategy. This can be done through your window display, signage, product packaging, and store layout. Consistent branding helps to create a cohesive and memorable shopping experience for your customers.

Seasonal displays

Seasonal displays are an excellent way to create excitement and draw attention to your store. They can highlight specific products and promotions and create a festive atmosphere. Seasonal displays should be changed regularly to keep customers interested and engaged.

Summary

Visual merchandising is a game changer that can catapult your sales, elevate customer experience, and bolster your brand. You can craft a distinctive and lasting shopping experience for your patrons by weaving the various visual merchandising elements into your overall strategy. You must harness the potential of visual merchandising to reach your business objectives and deliver an enjoyable and memorable shopping experience to your customers. Let’s unlock the full potential of visual merchandising to elevate your brand and delight your customers!

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

Every business owner aims to open a bank account with a business-friendly branch in their area that fits the individual’s and company’s banking needs and requirements.

Choosing the right bank for your banking needs is undoubtedly an overwhelming process that requires you to look at various banking applications. Usually, the banks near your office should be shortlisted for a detailed banking review. A banking review generally revolves around the type of services you require and how much they cost. Every business has different banking needs and priorities regardless of size, type, and location. Certain banks specialize in different services and financial transactions, ultimately becoming their USP (Unique Selling Proposition).

Depending on your banking needs, most prefer to choose banks that can offer incentives and privileges, which will help maintain smooth financial control.

Know Your Banking Needs

For sustained business growth and prosperity, your bank must be business-friendly, no matter the circumstances. Banks largely differ in the financial tools, products, and services they offer to businesses. With so many banking options and choices, you need to evaluate your shortlisted banks sensibly regarding their performance, consistency, and provision of unique banking services. Businesses often have greater banking needs, encouraging business owners to make a strategic partnership (open a business account) with the bank that fits their evolving business needs. Once you have a clear picture of your banking needs, you can only shop around for a financial institution.

Compare and Contrast Features

There are various banking services that business-friendly banks usually offer. Primary services include checking accounts, credit cards, online banking, deposit-only cards, business savings accounts, discounted employee checking accounts, and lending services such as SBA loans, lines of credit, term loans, equipment leasing, and commercial real estate.
Moreover, business-friendly banks offer cash management services such as merchant services, wholesale lockbox, wire transfers, import/export licensing and financing, financial bookkeeping reporting, insurance, payroll, retirement, 401k or IRA accounts, hotel discounts, shipping, office supplies, and more. If you have specific business needs and requirements, you can compare banking features before selecting your bank. Also, compare banking fee structures as they are predominant in selecting the right type of business-friendly bank.

Size Matters, Especially For Lending

Borrowing money from a bank is no easy task, especially if you are a first-timer. At some point in your entrepreneurial career, you will need money, perhaps to sustain the growth of your business. This is where you need to be incredibly careful and pay close attention to details. Entrepreneurs usually lack the wisdom and creative techniques used to borrow money from banks. They must play sensibly to win the correct amount from the bank under favorable conditions. 

Only a business-friendly bank can be transparent about its rules and policies and will have little or no unforeseen fees. This is what sets a business-friendly bank apart from other banks. Bigger banks have a higher reputation and trust, which is why most entrepreneurs and business owners prefer to open a business account in a reputed bank, as the size and worth of the bank matter!

Remember to Reevaluate!

Do not forget to review your bank periodically, as you may not get the quality of services you’re getting today or in the future. Banks often regularly change their policies on specific borrowing or lending options and services, confusing customers. At any point, if you get a negative vibe about your bank and feel like your bank is tricking you with unforeseen fees, consider taking your business elsewhere. Why? Because it may no longer be business-friendly!

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

Make Business More Profitable by Reducing Per Unit Cost

Diminishing the per piece unit cost of merchandise makes a business more lucrative by expanding the margin between what it costs to manufacture a product and what you charge for it. Decreasing the unit cost of products will help reduce the overhead cost per product manufactured.

Making fewer payments for lease and utilities or expanding production volume can reduce the average overhead cost per unit. It’s easier to diminish the cost per unit by using more affordable materials or expanding production proficiency, reducing labor costs per unit.

Decrease the Overhead Cost

Decrease the overhead costs by discovering an area with a cheaper lease or affordable rent. Consider leasing your office during a recession, assessing service charges, and searching for ways to reduce costs. On the off chance that business is moderate in your general vicinity, you may likewise have the capacity to consult with your proprietor for a cheaper lease.

Increasing sales is one of the ideal ways to reduce cost per unit. Increasing sales would mean offering more products to help diminish unit costs because the averaging overhead expenses are divided between the extra units produced while manufacturing more products.

Affordable Raw Materials

Find more affordable materials to utilize. A good approach is to use raw materials that could be used as an alternative to the more expensive materials. Purchase the products directly from their allocated suppliers to reduce the cost of purchasing them through an intermediary. Purchase in bulk volume if there is adequate storage space. With extra storage space, it’s possible to save the purchased goods inventory for using it over time to reduce cost by piece in manufacturing.

Reduce Labor Costs

Assess the production methods and search for approaches that make the production process more proficient. Proficiency diminishes the cost of labor per unit. Search for bottlenecks in the manufacturing process where production efficiency is possible. Coordinate additional assets towards easing these bottlenecks and direct all extra resources towards removing the bottlenecks. Take in the individual skills and aptitudes of the specialists with a specific end goal to schedule them for shifts that capitalize on their capacities.

Learn the ideal group estimate or the perfect add-up to produce on the double to accomplish economies of scale without creating any backlogs. Invest in technologies and assets that help improve manufacturing efficiency.

Keep definite and precise records to track and assess unit costs. Record your expenses and keep production logs itemizing production hours and exercises.

Reduce Overhead Costs

It’s essential to control the costs related to running the processing plant – regularly referred to as overhead costs by storing, creating, utility, supply, travel expenses, and other administrative costs. These costs are audited and added to the overall overhead cost to reduce cost by piece in manufacturing. Set spending plans and audit them on a week-by-week, month-to-month, and yearly premise—research purchases cost and rental choices for cost investment funds.

It’s crucial to reduce worker costs to those that advantage generation or increment deals. Keep the expenses and debt rate as low as possible. Audit and purchase for the most minimal worker advantage cost every year. Monitor tooling and supply costs and keep them in a protected zone to deter future losses. 

Put Resources into Capital

Occasionally, the best approach to spare cash is to burn through cash. Putting resources into equipment that influences manufacturing to process faster can reduce creation costs over the long haul to reduce per-unit costs.

Machinery that utilizes less material can bring down costs. Manufacturing companies must examine potential capital investment benefits versus costs required before buying new equipment. Determine the return on investment for reducing per-unit cost by calculating these investments’ profits. It’s essential to determine the return on investment, calculate the potential profit from the investment, and subtract the investment cost divided by the venture’s cost.

Control labor costs by monitoring productivity. Employees are the most productive when they have satisfactory time to complete their work and are approached with the best innovation and equipment to help them. Expanding productivity is a consistent procedure of discovering better methods for performing undertakings, preparing laborers in the most recent procedures, and assessing whether the average increment legitimizes the purchase of innovations and equipment in productivity. Ceaselessly enhancing productivity enables you to control unit costs.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

By: Jennifer Brazer

Jennifer is the author of From Cubicle to Cloud and Founder/CEO of Complete Controller, a pioneering financial services firm that helps entrepreneurs break free of traditional constraints and scale their businesses to new heights.

Fact Checked By: Brittany McMillen

Calculating Work in Process: A Complete Guide to Success

Calculating work in process inventory is essential for tracking production costs, managing cash flow, and maintaining accurate financial records. The WIP formula (Ending WIP = Beginning WIP + Manufacturing Costs – Cost of Goods Manufactured) provides the framework businesses need to properly account for partially completed products throughout their production cycle.

I’ve witnessed firsthand how mastering WIP calculations transforms business operations. After 20 years as CEO of Complete Controller, I’ve helped thousands of businesses across all sectors implement effective inventory management systems. One manufacturing client reduced production costs by 22% after implementing proper WIP tracking methods. In this comprehensive guide, I’ll walk you through the exact formulas, accounting methods, and real-world strategies that will help you optimize your production efficiency, improve financial accuracy, and ultimately boost your bottom line.

What is calculating work in process and how do you do it correctly?

• Work in process calculation tracks the value of partially completed goods in production using a specific formula, proper accounting methods, and regular monitoring systems.
• The core WIP formula (Ending WIP = Beginning WIP + Manufacturing Costs – COGM) factors in all production inputs and outputs.
• Effective WIP calculations require identifying all direct materials, labor costs, and manufacturing overhead.
• Implementation challenges vary by industry, with manufacturing, construction, and retail each requiring specialized approaches.
• Regular auditing and reconciliation prevent common WIP calculation errors that can distort financial statements.

Core Formula Breakdown: Mastering the WIP Equation

Understanding the fundamental work-in-progress formula is the first step toward inventory management mastery. The equation that drives accurate WIP calculations is:

Ending WIP = Beginning WIP + Manufacturing Costs – Cost of Goods Manufactured (COGM)

This formula creates a comprehensive picture of your production cycle by accounting for three key components:

• Beginning WIP inventory: The dollar value of all partially completed products carried over from the previous accounting period
• Manufacturing costs: The sum of direct materials, direct labor, and manufacturing overhead added during the current period
• Cost of Goods Manufactured (COGM): The total production cost of items completed and transferred to finished goods inventory

The beauty of this formula lies in its balance—capturing both what enters production and what exits as completed goods. According to industry benchmarks, holding excess WIP inventory increases operating costs by 15-30% annually due to storage requirements, risk of damage, and tied-up capital that could be used elsewhere.

Real-world application requires careful tracking of each component. For example, one of our manufacturing clients discovered they were underestimating their beginning WIP by not properly accounting for partially assembled components stored in different warehouse locations. After implementing proper work in process accounting fundamentals, they gained visibility into their true production costs and identified opportunities to streamline operations.

Work in Process Accounting Methods: Choosing the Right Approach

Different business models require different approaches to WIP calculation. The method you select should align with your production cycle, industry standards, and financial reporting requirements.

Traditional vs. modern calculation approaches

Method	Use Case	Advantage
Percent Complete	Long-cycle manufacturing, construction	Tracks progress milestones accurately
Unit Completion	High-volume production lines	Simplifies scaling calculations across multiple products
Cost-to-Finish	Labor-intensive projects	Identifies budget variances early in production
Weighted Average	Consistent production processes	Smooths cost fluctuations across accounting periods

 

Your choice of method significantly impacts financial reporting accuracy. According to sector-specific benchmarks, manufacturing businesses typically maintain WIP days between 45-60 days, while construction projects allocate 25-40% of total costs to WIP accounts during active building phases.

Sector-specific applications

Different industries face unique challenges when calculating work in process:

• Manufacturing: Focuses on tracking materials through multiple production stages, often using manufacturing work in process calculation methods that integrate with MRP systems
• Construction: Requires work in progress inventory best practices that align with percentage-of-completion accounting methods and contract billing milestones
• Retail: Manages smaller WIP inventory (typically <10% of total inventory) but needs systems to track customization or assembly processes
• Service-based businesses: Must capture labor and materials for in-progress client deliverables

Each sector demands customized approaches to WIP calculation that reflect operational realities. For example, construction firms must reconcile WIP with both project budgets and billing schedules, creating additional complexity compared to manufacturing operations.

Real-World Implementation Strategies: Putting Theory into Practice

Understanding the formula is one thing—implementing effective WIP tracking systems is another challenge entirely. The following real-world strategies have proven successful across multiple business models.

Case study: Copper manufacturing success

The Aurubis Stolberg copper plant provides an excellent example of WIP optimization in action. By implementing real-time tracking systems and integrating WIP data with their ERP system, they reduced WIP inventory by 15% and improved delivery reliability by 20%. Their implementation strategy included:

1. Production stage verification: Creating checkpoints to confirm when items move from one production phase to the next
2. Material consumption validation: Matching actual raw material usage against production standards
3. Daily workflow adjustments: Using WIP data to identify and address bottlenecks in real-time
4. Cross-departmental visibility: Giving accounting, production, and inventory teams access to the same WIP data

The results speak for themselves—lower carrying costs, improved cash flow, and more accurate financial reporting. This transformation required not just better calculations but a systematic approach to tracking production flows.

Implementation checklist

For businesses looking to improve their WIP calculation accuracy, follow this proven implementation roadmap:

1. Document your current production workflow from raw materials to finished goods
2. Define clear checkpoints where items change status within production
3. Establish standard costs for materials, labor, and overhead at each production stage
4. Implement physical or digital tracking systems to monitor movement between stages
5. Create reconciliation procedures to verify WIP calculations against physical counts
6. Train staff on the importance of accurate status updates and documentation

This structured approach ensures your WIP calculations reflect reality, not just theoretical formulas.

Critical Mistakes to Avoid: Common WIP Calculation Errors

Even with the right formula and methods, businesses frequently make costly errors when calculating work in process. Recognizing these pitfalls is the first step toward avoiding them.

Common errors in WIP calculation

• Overestimating Beginning WIP: Failing to write off obsolete or damaged components inflates WIP value and creates inaccurate financial statements
• Ignoring Partial Costs: Not allocating manufacturing overhead properly to in-process items undervalues inventory and distorts profitability
• Disregarding Work Stages: Treating all in-process items as having equal completion percentages rather than tracking actual progress
• Inconsistent Period Boundaries: Not properly cutting off transactions at period end creates mismatches between accounting periods
• Manual Calculation Errors: Relying on spreadsheets without proper controls increases the risk of formula errors and data omissions

These mistakes have serious financial implications. With inventory carrying costs ranging from 15-30% annually, even small WIP calculation errors can significantly impact financial performance and decision-making.

Preventive measures

Implementing these controls helps prevent common WIP calculation errors:

• Standardized Cost Allocation Matrices: Document exactly how overhead costs should be distributed across production stages
• Monthly WIP Reconciliations: Compare calculated WIP values against physical inventory counts
• Cross-Departmental Collaboration: Ensure production managers validate the WIP calculations performed by accounting
• ERP System Integration: Use software to automate calculations and reduce manual errors
• Documentation Requirements: Maintain clear records of all assumptions and methodologies used in WIP calculations

One manufacturing client reduced financial restatements by 80% after implementing these preventive measures, demonstrating their effectiveness in maintaining calculation accuracy.

Optimizing WIP Calculation for Efficiency: Beyond Basic Formulas

Advanced businesses don’t just calculate WIP—they optimize it as a strategic asset. Toyota pioneered this approach in the 1990s, maintaining WIP levels 50% lower than competitors through Just-in-Time production, which reduced their lead times by 40%. Modern JIT adopters continue to achieve 15-30% cost savings through similar approaches.

Advanced techniques for lean production

• Just-in-Time Integration: Synchronizing WIP with supply chain demands to minimize excess inventory
• Predictive Analytics: Using historical WIP data to forecast production bottlenecks before they occur
• Vendor Collaboration: Sharing WIP data with suppliers to optimize material deliveries and reduce buffer stock
• Kanban WIP Limits: Implementing maximum thresholds for items in each production stage to prevent bottlenecks

Teams using Kanban WIP limits have demonstrated remarkable results, including 40% reductions in production cycle times and 25% fewer defects, according to industry studies. These advanced techniques transform WIP from a passive calculation into an active management tool.

First-hand insights from Complete Controller

Working with hundreds of manufacturing clients has given me unique insights into innovative manufacturing work in process techniques. The most successful businesses share common practices:

1. They treat WIP as a key performance indicator, not just an accounting requirement
2. They review WIP calculations weekly, not just at month-end
3. They integrate WIP data into production planning and purchasing decisions
4. They benchmark their WIP levels against industry standards
5. They continuously refine their calculation methodologies based on changing production processes

These practices separate market leaders from followers in competitive manufacturing environments.

Work in Process Reporting Compliance: Meeting Regulatory Requirements

Proper WIP calculation isn’t just an operational concern—it’s a compliance requirement. Understanding the relevant accounting standards ensures your calculations meet both internal and external reporting needs.

GAAP & IFRS requirements explained

• GAAP Requirements: Generally Accepted Accounting Principles require consistent application of your chosen WIP method and disclosure of significant accounting policies related to inventory valuation.
• IFRS Considerations: International Financial Reporting Standards demand detailed breakdowns in financial statements, including financial reporting under IFRS standards that specifically address inventory valuation methodologies.
• Tax Implications: IRS regulations affect how WIP can be valued for tax purposes, with specific rules for long-term contracts versus standard manufacturing.
• Compliance requires more than just calculating numbers—it demands proper documentation and disclosure. To maintain audit-ready documentation, businesses should maintain:
• Raw material consumption logs tied to specific production runs
• Labor timecards allocated to production activities
• Machine utilization reports supporting overhead allocations
• Reconciliations between WIP calculations and general ledger accounts
• Written policies documenting calculation methodologies

These documentation requirements ensure your WIP calculations withstand both internal and external scrutiny, including financial audits and tax examinations.

Final Thoughts: Transforming WIP from Calculation to Strategic Asset

Calculating work in process correctly is more than an accounting exercise—it’s a strategic business tool that provides visibility into your production efficiency, cash flow management, and operational performance. By mastering the formula, selecting appropriate methods, implementing real-world tracking systems, avoiding common errors, optimizing for efficiency, and ensuring compliance, you transform WIP from a necessary calculation into a competitive advantage.

The businesses I’ve seen achieve the greatest success treat WIP as a dynamic management tool rather than a static number. They use WIP data to make informed decisions about production scheduling, resource allocation, and inventory management. They understand that accurate calculations drive better business outcomes.

If you’re struggling with WIP calculation or looking to optimize your inventory management approach, I invite you to contact our team at Complete Controller. Our expertise in production accounting can help you implement systems that provide both calculation accuracy and strategic insights.

FAQ

What’s the difference between work in process and work in progress?

The terms are often used interchangeably, but “work in process” typically refers to manufacturing contexts where materials move through defined production stages, while “work in progress” is more common in construction and project-based industries with longer completion timelines.

How often should we physically count WIP inventory?

Monthly physical counts are standard practice, but high-value or fast-moving production environments may benefit from weekly or even daily verification of key components. At minimum, conduct full physical counts at the end of each reporting period.

Can we use the same WIP calculation method for all product lines?

While using consistent methods simplifies accounting, different production processes may require different approaches. For example, high-volume standardized products might use unit completion methods, while custom products might need percentage-of-completion calculations.

How does WIP calculation affect cash flow forecasting?

WIP represents capital invested in production that hasn’t yet generated revenue. Accurate WIP calculations allow you to predict when that investment will convert to sellable inventory and ultimately to cash, improving the accuracy of cash flow forecasts.

What documentation do auditors typically request regarding WIP calculations?

Auditors generally request your WIP calculation methodology, beginning and ending inventory records, sample calculations demonstrating your formula application, documentation of overhead allocation methods, and reconciliations between physical counts and calculated values.

Sources

• ShipBob. “Work in Process Inventory (WIP): Definition, Formula, and Examples.” (2025). www.shipbob.com/work-in-process-inventory
• Deltek. “The Complete Guide to Construction Work In Progress (WIP).” (2024). www.deltek.com/construction-wip-guide
• OpenReference. “Days of WIP Inventory.” (2025). www.openreference.com/wip-inventory
• Unleashed Software. “What is Work in Process (WIP) Inventory?” (2024). www.unleashedsoftware.com/wip-inventory
• Wall Street Prep. “Work in Progress Inventory Formula (WIP).” (2024). www.wallstreetprep.com/wip-formula
• MRPeasy. “Work in Process Inventory — What Is WIP and How To Calculate it?” (2024). www.mrpeasy.com/wip-calculation
• Ware2Go. “What Is Work in Process Inventory and How to Calculate It.” (2025). www.ware2go.com/wip-guide
• Zoho Inventory. “What is Inventory Carrying Cost?” (2024). www.zoho.com/inventory/carrying-cost
• Fishbowl. “Work-in-Process Inventory: Formula, Example, and Benefits.” (2024). www.fishbowlinventory.com/wip-guide
• MIT. “Inventory Reduction and Productivity Growth.” (1997). www.mit.edu/inventory-study
• Dassault Systèmes. “Semi-finished Copper Producer Reduces WIP Levels by 15%.” (2025). www.3ds.com/case-studies/aurubis
• Agility at Scale. “Optimizing Flow with WIP Limits.” (2023). www.agilityscale.com/wip-limits
• MoldStud. “Kanban Guide for Business Analysts.” (2025). www.moldstud.com/kanban-guide
• Wikipedia. “Work in Process.” (2024). en.wikipedia.org/wiki/Workinprocess
• Investopedia. “Work in Process (WIP).” (2024). www.investopedia.com/terms/w/wip.asp
• International Financial Reporting Standards. “IFRS Standards.” (2024). www.ifrs.org

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

Many organizations and individuals face employee theft and embezzlement each year. Embezzlement is theft or misappropriation of funds by employees. According to a 2012 Association of Certified Fraud Examiners (ACFE) report, “the typical U.S. business loses 7% of its annual revenues to employee fraud”. Small businesses have the most cases and the highest losses. The risk of fraud has increased due to the advancement of technology and the progressive development of the world into a global village. Organizations should develop multi-layered fraud prevention strategies while keeping these statistics in view.

Warning Signs

1. The employee is working extra hours.
2. Petty cash and supplies are decreasing rapidly.
3. The employee is frequently taking work home.
4. The employee has an unusually close relationship with vendors.
5. Employees are spending more than they are earning.

How to Prevent Theft of Physical Assets

Random and surprise audit system:

Along with annual and quarterly audits of assets, a system for uninformed audits should also be developed. Under the pressure of unexpected audits, employees are likelier to avoid stealing and fraud.

Segregation of duties:

The duties of the inventory management staff should be delegated to prevent fraud. Two different individuals should do purchase order issuance and receiving of stocks.

Security cameras:

CCTV cameras should be installed in inventory storage areas to prevent employee theft.

Limited access to inventory storage areas:

Only authorized personnel can enter areas with a large inventory or a lot of financial information. It should also be kept locked during off hours. Keys should be issued to specified individuals only.

How to Prevent Check Tampering

Security of blank checks:

Blank checks are not accessible to anyone and should be locked until required for bookkeeping.

Check the bank statement of business:

Review of monthly bank statements helps in detecting fraud in the form of tampered checks.

How to Prevent Expense Reimbursement Schemes

Receipts of expenses:

For reimbursing random employee expenses, demand a receipt of the costs the employee claims.

Policy for expense reimbursement:

A company must have a documented expense reimbursement policy. A clear segregation of reimbursable expenses should be defined in that policy, and every employee must receive a copy of the reimbursement policy.

Comparison of expense reports:

A comparison of the expense reports submitted by different employees should be made to evaluate the legality of expenses.

How to Prevent a Billing Scheme

List of approved vendors:

To prevent fraud at this level, maintain a list of approved vendors and do research to ensure the legality of the vendors. You may be paying fake companies if you don’t practice this simple plan.

List of approved prices:

The approved price list should also be maintained to avoid payment at higher rates.

Signed receipts:

Sign a check only if a signed receipt of the product is attached.

How to Prevent Theft of Cash

Manager’s approval:

Sensitive transactions should always be accomplished after the approval of a manager.

Monthly account statements:

Regular updates of customer account statements prevent fraud at this level.

Rotation of duties:

Rotating duties and sending the employee on annual leave and vacation prevents employee theft because the employee is terrified of easy detection by others.

Bank lockers:

Cash and payment handling by employees should be minimized to prevent cash theft. Payments should be received directly into a company bank account.

Surprise audit of cash:

Discrepancies in cash can be detected easily by counting the money and comparing it with receipts.

Video cameras:

Install video cameras in sensitive areas where cash is handled to prevent stealing.

Conclusion

Fraud prevention and fraud handling are essential to secure your business. Following the above shortcuts in an organized manner will lead to an anti-fraud policy that works and strong internal controls.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

More and more organizations are now shifting towards the cloud computing trend. Businesses that opt for customized cloud solutions can enjoy many benefits, including added security, increased cost savings, and improved agility. Whether you own a small or medium-sized business, cloud computing can help you achieve outstanding investment returns.

Around 80% of businesses are utilizing or planning on adopting the cloud system to enhance their operations. Various organizations claim that cloud hosting has proven to be the best investment for their business. With their operations shifting online, they have benefited immensely from the expanded storage and added security.

Here, we have compiled why businesses should opt for customized cloud solutions.

It Won’t Prove to be as Costly

If your organization is about to receive new contracts or massive growth, you must expand your storage using a cloud provider offering customizable solutions. Opting for prepackaged cloud services may be a bad idea, especially if you own a small business, as you must pay a significant amount. Prepackaged cloud services are sold depending upon their storage in terabyte units, which may prove too costly for various start-ups or small businesses as they do not require such much storage. Moreover, they might also have to pay heavy charges when upgrading or terminating. Therefore, choosing customized cloud solutions will be a better option for most businesses.

Experts can Help Install and Manage the System

If you are new to the cloud world, a customized solution provider will provide the assistance you need when setting up the system for your new venture. Experts can help you manage the system during the initial period until you become well-acquainted. Once you get the hang of it, you can efficiently manage the system independently and won’t require outside help.

The experts will be able to help you configure and integrate the system in the best manner. Moreover, they will also train employees on how to manage the system efficiently to ensure smooth operations.

Contract Terms can Easily be Negotiated

If your business ends up securing a huge contract, you may have to expand your storage to accommodate HIPAA and PCI compliance. You will need a lot of storage, fast-paced systems, and increased security to keep your data safe. You can then talk to your customized cloud solution provider, as they offer extreme flexibility to their clients. They will negotiate the terms of the contract to help you expand your storage and pay for only what you need – instead of paying extra on prepackaged cloud systems.

24-Hour Support

If a company loses access to its data, it is doomed to failure. Companies must keep their data secure to thrive in today’s fast-paced world. Though it is crucial to ensure that your cloud provider offers adequate support, the providers offering customized cloud solutions are more likely to offer 24-hour support. You won’t have to wait for an agent to get back to you or send numerous voicemails to get things back on track.

As soon as you encounter a problem, you can contact one of the representatives of your custom cloud service provider, who can help you resolve the issue immediately.

Simpler Configuration

Custom cloud service providers offer customized solutions to their clients according to their business needs. They provide a plethora of options that offer extreme flexibility – especially regarding the configuration of the system and its architecture. It is recommended that start-ups or small business owners search for vendors that provide standard products instead of providers that offer custom solutions, as it could be a bit more costly. Moreover, integrating it into the company’s systems would be a lot more complicated.

Conclusion 

In conclusion, the rising trend of cloud computing brings numerous advantages. Opting for customized cloud solutions proves cost-effective, ensures expert guidance in setup and management, allows flexible contract negotiations, provides 24-hour support, and simplifies system configuration. For businesses, embracing tailored cloud solutions becomes a strategic move toward enhanced efficiency and security in the dynamic digital landscape.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

Determining per unit cost may be a very common aspect in the manufacturing industry, but it is no surprise that it must be handled professionally. No matter what one may argue, calculating work requires the utmost brilliance and perfection in technical accounting knowledge. Determining raw material, labor, and overhead costs incurred in manufacturing a certain good is no easy feat.

You have to carefully examine and evaluate the costs of producing a finished good at various stages of the production process before determining the total cost incurred on producing a good or a commodity. WIP (Work In Process) is usually used in production and supply chain management, which is immensely important in the manufacturing and distribution.

What Is Work in Process?

According to Investopedia, “It is the sum of all costs put into the production process to manufacture products that are partially completed.” A careful analysis has to be made at various stages of the production process to determine all the costs incurred on raw materials, labor, and overhead. To determine the exact unit cost, you must have a clear picture of all the costs incurred from raw materials to finished goods. It is important that your bookkeeping shows all the costs to come up with your final cost.

As far as the calculations are concerned, the formula for calculating work in process is:

Work in process = (operating inventory goods in process + raw material used during the period + direct labor during the period + factory overhead for the period) – ending inventory.

WIP–In Light Of Automation and Technology

Fortunately, we have opened our eyes in such an era of modern accounting and bookkeeping, where processes have become easier through superior automation and technology. Now, we have access to advanced accounting software and solutions, making calculations easier, quicker, and more accurate. It indicates that calculating work in process is now considered a piece of cake for most individuals with command and control over this contemporary accounting and manufacturing software.

Plus, we now also have access to accounting and bookkeeping professionals who make the process easier and help reduce manufacturing costs at various stages of the production process.

Benefits of Reducing Manufacturing Work in Process

There are numerous benefits associated with reducing manufacturing work and process costs. The top benefits include better cash flows, higher liquidity, and diminished business risks. However, a brilliant execution strategy is required to make things go in your favor. Since the ultimate aim of every manufacturing establishment is to reduce raw material, labor, and overhead costs in each unit produced, you must integrate innovative procedures and techniques to eradicate manufacturing bottlenecks. Moreover, calculating work in process may seem hard at first, but once you sort things out piece by piece (costs), everything becomes relatively easier to handle.

Strategic Forecasting and Planning and the Need for Calculating Work in Process

Undoubtedly, strategic forecasting and planning are critical to business success. The more you get involved in reducing per-unit costs, the more you will save at the end of the day. To determine how many units should be produced, as well as raw material costs, labor costs, and overhead costs, you must clearly understand your production requirements and specifications. Strategic variety usually involves realistic vision, mission, and out-of-the-box thinking for making future projections related to manufacturing and production.

Moreover, strategic planning and analyses will define where your company is heading and what the company aims to achieve in both short and long-term periods. Machines can be added or integrated into the manufacturing process, and the workforce can be educated with newer and advanced techniques for optimal utilization of resources to attain ideal results. Calculating work in the process must be handled carefully because it directly influences your profitability index.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

No matter how much one may argue about who is solely responsible for cloud data protection, experts from all across the globe are unanimous on the resolution that the ultimate responsibility of data compliance lies with the organization that owns the sensitive information, not the service provider.

What Is Cloud Data Protection?

Looking at the big picture, cloud data protection (CDP) is all about infrastructure security, storage management, and data integrity. Since it provides optimal data storage, protection, and network security, businesses worldwide trust it to be safer, more secure, and more stable than ever. It protects the cloud and prevents the leakage or theft of sensitive information from the cloud. Since the ultimate objective of CDP is to protect static and moving data in the cloud and ensure various services and processes, it is critically important for you and your cloud provider to ensure its optimal functioning at all levels.

Data integrity: Data remains the same as it is stored as strong encryption layers protect sensitive data from illegal editing or corruption. It indicates that your sensitive data is secured against all threats or illegal access.

Storage Management: The cloud infrastructure must ensure data safety and security and provide a continuously available interface as desired or required. Primarily, it depends on your cloud service provider’s capacity and how agile or responsive they are in managing the account. However, it would help if you also ensured the data was correctly maintained.

Infrastructure security: These are collective efforts, processes, measures, and policies that ensure cloud infrastructure and network security. However, most small-scale businesses do not pay much heed to cloud data protection protocols. That’s where most problems related to the safety and security of sensitive data commence arising.

Why Are Most Businesses Misguided?

It’s a human tendency to shift responsibilities or critical tasks entirely onto someone else’s shoulders. Most of us do not want to take complete ownership of complicated things with intense and severe repercussions (if not executed properly). Then, there are those people who are misguided about their responsibilities and rely entirely on others. No matter how much money you can afford to spend on acquiring any pro cloud provider’s services, you have to make efforts to secure your data yourself and not solely rely on your service provider.

Although people have different perspectives about data safety and security and whether or not to trust the cloud entirely, cloud data protection is inevitably the most critical aspect of the cloud. Without this, you can never expect to secure sensitive data. According to a study, 80% of businesses wrongly believe that data protection and management is solely the responsibility of their cloud service provider. It indicates that cloud service providers are responsible for providing certain security protocols or encryption layers. However, the protection, safety, and security of sensitive information lie in the hands of businesses.

The study further revealed that businesses prefer to transfer their data protection, privacy, and compliance responsibilities to third-party cloud vendors or service providers to focus more on the core side of the business and less on its security, storage, or management affairs. Moreover, the total spending on cloud technologies is predicted to increase by 20% from 2018 to 2020. It bears testimony that most businesses intend to transfer their cloud data protection-related responsibilities to cloud service providers.

Core Reasons Why Most Businesses Choice To Hire Pro-Level Cloud Services

Companies prefer to embrace an easy approach to protect their sensitive data because they lack in-house skills, knowledge, experience, and expertise in handling cloud data protection optimally. However, you need to ensure that the cloud service provider you are acquiring for utilization has relevant skills and provides 24/7 assistance in managing cloud-related discrepancies effectively.

: About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

Achieving the right strategic balance in inventory at the beginning of a new business is not easy. Manufacturing businesses aim to minimize their work in process to maximize their profitability. Simultaneously, they also look for alternative routes to minimize their production and post-production costs as much as possible to increase their yearly profits.

Finding the right WIP costs is hard for small businesses, such as a bakery, since you cannot anticipate exact labor and overhead costs where ingredients are easily transformed from raw material to a finished product. You can easily calculate WIP through accounting/bookkeeping knowledge and wisdom for big setups.

Is There A Difference Between Work In Process And Work In Progress?

Work in Process

These terms are often used interchangeably because WIP is perceived as the same thing. However, there is a slight difference between these two terms that mostly lie in the context. Work in Process refers to partially completed goods’ production costs, which means the manufacturer’s inventory is not yet completed. It includes different costs like raw materials, labor, and overheads that need to be known to determine the per-unit cost of goods manufactured.

It indicates that work in Process speaks more of the inventory side, whereas work in progress involves constructing long-term costs. To lower work-in-process costs, manufacturers must play smart and purchase raw materials from the most affordable vendors. Also, they need to hire labor for the production shifts at competitive rates and minimize overhead costs as much as possible.

The final per-unit price can only be determined if manufacturers know the exact output level from the resources applied. In short, whatever is consumed on the factory floor for the production of goods, such as the direct cost of raw material, direct costs of labor, and factory overheads for the production period. This will give an exact per-unit cost. The formula for calculating Work in Process is:

Work in Process = (operating inventory goods in Process + raw material used + direct labor during the period + factory overhead for the period) – ending inventory

Work In Progress

Work in progress involves constructing long-term assets that will be used to produce goods that are not yet completed. Until construction work is completed and the facility starts to manufacture goods, the amount spent on partially completed construction of long-term assets would fall under work in progress. 

The amount spent will be treated as long-term assets under the balance sheet’s plant and equipment section. Construction will no longer be treated as a work in progress when it wraps up. Depreciation of long-term assets starts as soon as the whole building and infrastructure are operational and produce goods.

Cost Saving Benefits

The key cost-saving benefits of work in Process and work in progress are efficiency, accuracy, traceability, and productivity. Every production house strives to minimize the work of the process due to a lack of production or manufacturing knowledge and awareness. Businesses can’t survive for long if the per-unit price of goods is only based on vague assumptions and mere guesses.

Knowing the manufactured product’s actual price is essential for setting the product’s correct price with markup. For example, if you can determine the exact per-unit price of the product to be $5 and if you expect to sell the product directly to the retailers for $7, which means a markup of $2, you will know exactly how much profit you are earning by selling each unit.

Work In Progress—Done Right!

You may be proficient at manufacturing goods in your production facility, but not cost. For ideal costing, you need to hire an in-house accounting expert to determine and reveal the exact per-unit cost of production. Based on manufacturing and bookkeeping records, the expert will help you place the right production order for optimal results.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.