Manufacturing & Distribution Accountants

Industries · Manufacturing & Distribution

Accountants who understand margin, stock and the cash between them.

Manufacturing and distribution run on tight margins and the working capital locked up in stock. The business lives or dies on knowing what each product really costs, where the cash is held, and when to invest in capacity. We work with established manufacturers and distributors, on the costing, working capital and investment decisions that turn a busy operation into a profitable one.

Talk to us→How we work→
In short

Prime Partners advises established manufacturers and distributors on the financial decisions that come with running on inventory and margin. That covers product costing and true margin, the working capital tied up in stock, capital investment in plant and equipment, the R&D tax incentive on process and product development, and structure and succession. We bring the technical depth of a specialist practice and the accessibility of a team that knows your business by name.

We work with food and beverage manufacturers, engineering and metal fabrication businesses, plastics and packaging producers, building product manufacturers, importers and wholesalers, and distribution and logistics businesses.

The pressures you carryWhat we doHow we workMoments that matterCommon questions
The pressures you carry

The financial questions that sit underneath every manufacturer.

A manufacturing or distribution business earns its margin on volume, with a great deal of cash tied up in stock and equipment. The decisions that matter most are about cost, capital and the working capital that sits in between. These are the recurring pressures we help these businesses hold.

Costing and true margin
Knowing what each product actually costs to make and deliver, once materials, labour, overhead and freight are counted, is the foundation of pricing. Many businesses price off an incomplete cost and the real margin is thinner than they think.
Inventory and working capital
Stock is cash you cannot spend. Understanding which lines turn and which sit, and aligning purchasing to real demand, frees up working capital that inventory quietly absorbs.
Capital investment
Plant, equipment and capacity are large, long-term commitments. The decision to invest, and how to fund and depreciate it, shapes the cost base and the tax position for years.
The R&D you may already be doing
Developing a new product or re-engineering a process to solve a real technical problem can qualify for the R&D tax incentive. It is widely under-claimed in manufacturing, and the work many businesses already do can be recognised.
Structure and succession
A business holding significant plant, stock and property needs a structure that protects those assets and a plan for passing them on. Both reward being set up well ahead of the moment they matter.
What we do

The same journey we take every client on, told for a manufacturing business.

Most manufacturers and distributors come to us for one thing and stay for the rest. The work tends to follow a natural order, from getting the costing and foundations right through to planning how the business is eventually handed on. Each step below is a service in its own right, and each one links through to the full detail.

Accounting clean-up→
Where the books or the stock records have fallen behind, we bring them back to a standard you can rely on, so the numbers tell the truth on cost and margin before any decision is made on them.
Business accounting and tax→
Year-end accounts, tax and inventory accounting, prepared with the way a manufacturer earns its margin properly understood. The foundation everything else sits on.
External finance team→
The reporting a manufacturer actually needs, including margin by product, stock turn, working capital and cash flow, run by a team alongside the business rather than a once-a-year file. Where true costing and margin get built.
R&D tax incentive→
A specialised area and widely under-claimed in manufacturing. Where you develop new products or re-engineer a process to solve a technical problem, we assess eligibility and prepare the claim properly.
Business structure review→
A business holding significant plant, stock and property needs the right structure. We review whether yours still protects those assets and fits the scale at which you now operate.
Business growth→
The decisions that come with scaling production, from funding capital investment and capacity to managing the working capital that growth demands, so expansion strengthens the business rather than straining its cash.
Business succession→
Planning the path for an owner stepping back, including the sale or transfer of a business holding real assets, so the operation, the team and the value carry on without disruption.
Private client advisory and SMSF→
The personal side of owning a manufacturing business, including individual tax position, investment structures, self managed super and holding the business premises in the right hands.
How we work

A senior-led relationship, not a once-a-year file.

Every engagement is led by a senior practitioner who knows the business and stays close to it. The way we work follows the same shape, whatever the operation.

1
Understand the business
We start with what you make or move, how it is costed and priced, where the cash sits in stock and equipment, and what you are trying to build over the next few years.
2
Get the foundations right
Compliance, reporting, inventory accounting and true product costing brought to a standard you can rely on, so the routine work stops being a source of friction and the margin is clear.
3
Advise on the decisions that count
Pricing, capital investment, working capital and R&D addressed as they arise, with the analysis to support a real decision rather than a hunch.
4
Stay alongside the business
A continuing relationship where you can pick up the phone before you invest in capacity or change your pricing, rather than explain it after the fact.
5
Plan the handover
When the time comes to step back, we plan the succession well ahead of it, from the sale or transfer of the business to the tax that comes with it, so the business carries on and the owner who built it leaves on their own terms.
Moments that matter

The decisions that shape a manufacturing business deserve more than a once-a-year accountant.

Investing in the equipment that lifts capacity and the cost base with it. Discovering the true margin on a product line and pricing it properly. Freeing the cash that has been quietly locked in stock. Selling the business or handing it on and stepping back well. These are the moments where good advice is worth far more than the work that surrounds it, and they are the moments Prime Partners exists for.

Common questions

Questions manufacturers and distributors ask us.

What does an accountant for a manufacturing or distribution business do?
An accountant for a manufacturing or distribution business handles the financial work that comes with running on inventory and tight margins. That means understanding product costing and true margin, managing the working capital tied up in stock, planning capital investment in plant and equipment, claiming the R&D tax incentive on process and product development, and handling the tax, structure and succession of the business. At Prime Partners we cover the routine accounting as a matter of course and focus the relationship on the costing, working capital and investment decisions that decide whether the business makes money.
How is inventory accounted for in a manufacturing business?
Inventory in a manufacturing business is valued across raw materials, work in progress and finished goods, with manufacturing costs absorbed into the value of what is made. How costs are allocated affects both the value of stock on the balance sheet and the cost of goods sold that drives your margin. Getting this right matters because it determines your reported profit and your tax, and we set up costing so the numbers reflect what each product actually costs to make.
How do you work out the true margin on a product?
The true margin on a product is what is left after all the costs of making and delivering it are accounted for, including materials, labour, and a fair share of overhead and freight, not just the headline cost. Many businesses price off an incomplete cost and discover the real margin is thinner than they thought. We build costing that captures the full picture, so pricing and product decisions are made on what each line actually earns.
Can a manufacturer claim the R&D tax incentive?
Yes, manufacturers can often claim the R&D tax incentive where they develop new products or improve production processes to resolve a genuine technical uncertainty. Developing a new product, trialling a new material, or re-engineering a process to solve a real technical problem can qualify when it is documented properly. It is widely under-claimed in manufacturing, and we assess what qualifies and prepare the claim so the development work you already do is recognised.
How can a manufacturing business improve cash flow tied up in stock?
Cash tied up in inventory is one of the largest demands on working capital in manufacturing and distribution. Improving it comes from understanding which stock turns and which sits, aligning purchasing and production to real demand, and managing the gap between paying suppliers and being paid by customers. We build the reporting that shows where the cash is held and help you free up the working capital that stock quietly absorbs.
Where is Prime Partners located?
Prime Partners has offices in North Sydney and Orange, NSW. We work with manufacturers and distributors across both metropolitan and regional New South Wales, and nationally where the relationship calls for it.
Talk to us

Start a conversation about your business.

If you are weighing a capital investment, rethinking your pricing, freeing up working capital, or planning your eventual exit, we would be glad to talk it through.

Get in touch→