Back to Home
🏭

Manufacturing Accountants

Manufacturing accounting including cost accounting, inventory valuation, production costing, supply chain finance, and export/import compliance.

AA
Written by Asrah Abbas, ACA / ACCA — Principal at Westfin Accountants Ltd
Chartered accountant with 12+ years of UK practice experience. Member of the Institute of Chartered Accountants in England and Wales (ICAEW) and the Association of Chartered Certified Accountants (ACCA).
Last updated:

In plain English

Manufacturing accounting is capital-intensive: WIP valuation, R&D, capital allowances, and export VAT. Westfin runs absorption-costing for stock under FRS 102, claims Full Expensing on plant, and manages export evidence for zero-rated overseas sales.

Sector-specific tax matters

The reliefs, schemes and risks that consistently apply in this sector — with HMRC source links so you can verify everything we say.

Full Expensing on plant & machinery

Limited companies deduct 100% of qualifying main-pool plant in year of purchase. 50% on special-rate pool. Permanent from April 2023.

Reference (gov.uk)
R&D for process innovation

Manufacturing process improvements (automation, materials science, energy efficiency) often qualify for R&D — under-claimed by SME manufacturers.

Reference (gov.uk)
Export VAT zero-rating

Direct exports outside the UK are zero-rated — but you must hold valid commercial evidence of export within 3 months.

Reference (gov.uk)

Common Manufacturing Accounting Challenges

Cost of goods manufactured tracking

Raw materials and WIP inventory

Overhead allocation to products

Supply chain finance

Export and import documentation

R&D tax credit claims

Our Manufacturing Solutions

Manufacturing ERP integration

Job costing and batch costing

Inventory valuation (FIFO, weighted average)

Overhead absorption rates

Customs and excise compliance

R&D project tracking

Specialized Services for Manufacturing

Manufacturing cost accounting

Inventory management (raw materials, WIP, finished goods)

Job costing and batch costing

Standard costing and variance analysis

Export and import VAT compliance

R&D tax credit claims (up to 33% relief)

Manufacturing FAQs

How do you calculate cost of goods manufactured?

We track direct materials, direct labor, and manufacturing overheads. Opening WIP plus manufacturing costs less closing WIP equals cost of goods manufactured, which feeds into COGS calculation.

What inventory valuation method should we use?

Most UK manufacturers use FIFO (First In First Out) or weighted average cost. We assess your production process to recommend the method providing most accurate profitability.

Can you help with R&D tax credits?

Yes, manufacturers investing in innovation can claim significant R&D relief. SMEs get 86% uplift on qualifying costs (effective 33% tax benefit), potentially worth hundreds of thousands annually.

Ready to Get Started?

Speak to our Manufacturing accounting specialists today