Best Accounting Software for Small Manufacturing Business

1. FreshBooks (Top Recommendation)

Though FreshBooks is traditionally known for service-based businesses, it can also work well for small manufacturing businesses that prioritize simplicity and ease of use. It handles essential accounting tasks like invoicing, expense tracking, and financial reporting:

  • Custom Invoicing: Easily create and send professional invoices for your manufactured goods.
  • Expense Tracking: Keep track of raw material purchases and other operational costs.
  • Time and Project Tracking: Manage production times and associated costs.
  • Third-Party Integrations: Integrate FreshBooks with other tools for inventory or production management to create a more comprehensive solution.

Best For: Small manufacturing businesses that need simple accounting, invoicing, and expense tracking, and that can benefit from integrating with other systems for more complex manufacturing needs.

2. QuickBooks Desktop Enterprise (Manufacturing & Wholesale)

QuickBooks Desktop Enterprise is a great fit for small manufacturers that need more advanced features tailored to their production processes:

  • Bill of Materials (BOM): Track raw materials and components needed for production.
  • Inventory Management: Manage stock levels in real-time and track inventory across locations.
  • Job Costing: Accurately track the cost of labor, materials, and overhead for each production job.
  • Advanced Reporting: Gain deeper insights into financial and operational performance with customizable reports.

Best For: Small manufacturers that require robust accounting and inventory management tools integrated into one system.

3. NetSuite ERP

NetSuite ERP is a cloud-based solution offering advanced features for financial management, inventory control, and production planning, making it ideal for scaling manufacturing businesses:

  • Production Management: Handle complex manufacturing processes, from work orders to production schedules.
  • Inventory and Order Management: Track inventory in real-time, manage multiple locations, and automate restocking.
  • Advanced Financial Reporting: Gain in-depth insights into the financial health of your manufacturing operations.
  • Scalable Solution: NetSuite grows with your business, making it perfect for manufacturers planning for expansion.

Best For: Growing small to medium-sized manufacturers needing a comprehensive, scalable ERP system.

4. Xero

Xero is an affordable cloud-based accounting solution that offers basic accounting features along with integrations for inventory management:

  • Inventory Management: Track raw materials and finished goods, with automatic stock level updates when sales or purchases are recorded.
  • Job Costing Add-ons: Integrate with third-party apps like DEAR or Unleashed to handle job costing and more advanced inventory needs.
  • Multi-Currency Support: Great for manufacturers dealing with international suppliers and clients.
  • Mobile-Friendly: Manage your business finances from anywhere with Xero’s mobile app.

Best For: Small manufacturers that need basic accounting features with the ability to integrate with specialized inventory management tools.

5. Zoho Books

Zoho Books offers a great value for small manufacturers, providing strong accounting features at an affordable price point. It integrates well with other Zoho products for a complete business solution:

  • Inventory Tracking: Manage raw materials and finished goods, along with stock alerts when inventory is low.
  • Bill of Materials (BOM): Track the components needed for each product.
  • Seamless Integrations: Works with Zoho Inventory and Zoho CRM, giving a holistic view of your operations.
  • Custom Reporting: Easily generate financial and operational reports to track the performance of your business.

Best For: Small businesses that want an affordable accounting system with built-in inventory management and CRM integration.


Conclusion:

FreshBooks is an excellent starting point for small manufacturing businesses looking for straightforward accounting and invoicing with the ability to integrate additional tools as needed. For more advanced manufacturing needs, QuickBooks Desktop Enterprise or NetSuite ERP offers robust inventory, job costing, and production management features. Xero and Zoho Books provide great options for businesses on a budget, with integration capabilities to enhance manufacturing processes.

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