Accounting Services for
Factories & Manufacturing
Analyze production costs, control raw material expenses, plan taxes, and utilize financial data to optimize production efficiency and business growth.
- Know Production Cost Per Unit
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- Support BOI Accounting & Taxes
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- Financials Ready for Machinery Loans
Control Factory Costs
Keep Profits in Your Hands
Turn complex production data into KPIs that tell you exactly when to reduce waste or invest in new machinery.
Is Your Factory Facing These Problems?
Rising Production Costs
Labor, electricity, and overhead costs increase, but selling prices remain the same.
Volatile Raw Materials
Difficult to manage stock levels and fluctuating raw material costs.
Inaccurate Stock
Lost raw materials, high scrap rates, and mismatched inventory/accounting records.
Unknown Cost Per Unit
You know the overall picture, but not the specific profit/loss per product.
High Production, Low Profit
Production increases, but margins disappear into hidden costs.
Tight Cash Flow
Cash is tied up in inventory and receivables, causing a lack of liquidity.
Why Do Factories Need Specialized Accounting?
Manufacturing businesses have highly complex costs—including direct materials, direct labor, manufacturing overhead, and machinery depreciation. Without an accurate Cost Accounting system, you might price products incorrectly and mistime your expansion investments.
Key Metrics (KPIs) Factory Executives Must Know
We turn back-office numbers into a dashboard that helps you make sharp decisions.
Gross Margin
Gross profit margin (Sales vs. Production Cost)
Inventory Turnover
Inventory turnover rate
Scrap Rate & OEE
Scrap proportion and Overall Equipment Effectiveness (OEE)
Manufacturing Cost Structure Analysis
We break down every dimension of your costs to plug leaks and increase profit margins.
Specialized Expertise for Factories
Beyond standard bookkeeping: using data to protect your profits.
Cost Accounting
Analyze Cost per Unit, costs by production line, break-even points, and profit margins per product, empowering executives to set accurate prices and make informed decisions on orders.
Inventory & Internal Audit
Factories often lose profit to inaccurate stock, Scrap, and loose processes. Our Internal Audit service sets up robust stock control systems and plugs all leaks.
BOI & Tax Planning
If your business holds BOI privileges, setting up an accounting system to clearly separate promoted/non-promoted revenues and expenses is critical to fully maintaining your tax exemption benefits.
Producing More, Earning Less?
Many factories see an increase in production volume, but profit margins shrink due to raw material costs, production line scrap, and poor cash management. Our CFO Advisory service dissects this structure to improve your bottom line.
Buying Machinery / Expanding the Factory?
Before making a large investment, you must analyze cash flow, EBITDA, and Debt Service Coverage Ratio (DSCR). We prepare financial statements and profiles to increase your chances of securing factory loans through our Loan Advisory service.
Comprehensive Services SiamAccount Provides
Which Manufacturing Sectors Is This For?
Parts Manufacturing Factory in Lamphun
The client had high-selling items, but overall profits were low. Our Audit and CFO teams revamped their Cost Accounting system and deeply analyzed the Cost per Unit. We found high Scrap Rates in certain production steps. After restructuring processes and stock controls, the factory reduced waste and increased its Gross Margin by 18% within a single quarter.
Frequently Asked Questions (FAQ)
How should a factory perform Cost Accounting?
By establishing a realistic Overhead Allocation method and separating account codes by Cost Center for each production line.
What are the main components of production costs?
It consists of 3 main parts: 1. Direct Material, 2. Direct Labor, 3. Manufacturing Overhead.
How is machinery depreciation correctly calculated?
Usually calculated using the Straight-Line method over the estimated useful life, or the Units of Production Method to align with actual production volumes.
Do BOI-privileged businesses need separate accounting?
Yes, you must clearly separate revenue and expense recordings between BOI (promoted) and Non-BOI operations to claim your tax exemptions.
What financial statements are needed for factory expansion loans?
Financial statements reflecting normal profit, positive cash flows, and Financial Projections showing your Debt Service Coverage Ratio (DSCR).
Should SME factories establish an Internal Audit system?
Highly recommended. It helps control raw material stock, prevent fraud, reduce Scrap, streamline workflows, and massively cut hidden costs.