Different with many other disciplines, accounting garment industry to handle multiple complex business such as managing raw material diversity, track costs according to each order, each stage of production, price calculation accuracy for each product code. If still managed by Excel or accounting software, common business very easy to fall into the status of data slows, teen, sync, hard to serve the decision.
Therefore, accounting software apparel is no longer simply a tool recorded books, which have become management solutions critical to help businesses control costs, optimize cost, improve production efficiency. Choosing the right software in accordance with the peculiarities of accounting of production garment will help businesses capture the exact effect each order, actively adjust the production plan contribute to improving competitiveness in the market.
The same Lac Viet learn in detail the peculiarities of accounting in the textile industry and the accounting system in effect for this industry.
1. The common problems apparel business are met
A number of difficulties repeat often related to the accounting industry apparel. These problems not only affect the accounting personnel, but also directly impact strategic decisions, production efficiency and profitable business.
1.1. Difficult to control the cost of raw materials
With the garment industry, raw material including fabric, just, buttons, zippers, labels... i.e. the elements that make up the final product. According to the report, industry raw material costs are often the largest proportion in the total cost of production, ranging approximately 60-80% of total costs in the apparel business. The lack of strict control of quality, value, raw material, leads to:
- False data inventory between reality and books.
- Material costs incurred are not reflected properly on each order or product code.
- Do not clearly distinguish main raw materials, auxiliary materials in the consumption, causing difficulty in the calculation of the price of the products.
From the perspective of accounting, if simple tracking with Excel sheet or software non-professionals, we can easily lose orientation when the number of raw materials in large, diverse types and fluctuations in each order.
1.2. Production rates slow, inaccurate
In business apparel, recipe calculator, price of production, not only is the total cost divided by the number of products. Because production takes place through multiple stages, each stage arises at private expense, the accountant should:
- Set the cost by order or product code (for example shirts A send through the stages of cutting – sewing – finishing).
- Allocate the cost of production in common as water, electricity, depreciation of machinery into each order based on reasonable basis.
If there is no unified system of accounting easy to fall into a state calculate the price of slow inaccurate. This makes leadership difficult to assess the effect produced each product line, influence the decision to adjust the sale price, get new orders or conducting machining.
1.3. Data between accounting – manufacturing – warehouse heterogeneous
In a company garment manufacturing operations – inventory – sales take place in parallel, data need to be linked:
- Inventory report inventory, raw material, finished products.
- Production progress report stage, scrap, unfinished products.
- Accounting need these metrics to accounting for expenses, the price and collated fact.
If the parts using the system or method of storing different (for example Excel individually, separate software), the data will not homogeneous, leading to:
- Accounting case not true of the actual material.
- Leadership lack of accurate information to decide the production plan, material reserves.
- Easy to occurrence of deviations in financial reporting, the price of capital and liabilities.
The problem of data inconsistency is the bottom line it is time-consuming for accounting when synthetic data, especially at the end.
1.4. Take more time synthesis report for leaders
A practice common is the report serves leadership requires data aggregated from many different sources:
- Inventory, raw material, finished products.
- The cost of production code of each row, single row.
- Price in stages, the production – in progress – completed.
If there is no tool support unified accounting will take many hours/days just to sum up, reviewing data, instead of focusing on the analysis given strategic recommendations.
Losing a lot of time in this stitch not only slow progress reports, but also makes timely feedback for leaders delayed, since it affects the ability to adjust production plan in accordance with market volatility, and cost.
2. Learn about accounting software apparel
Accounting software apparel is a system management software and financial accounting is designed specifically for business production or machining in the garment sector. It not only made the accounting profession such as revenue recognition, cost or controlling public debt, but also to support business tracking production costs, product prices, effective each order – the particularities of the garment industry.
Important differences with accounting software typically is in place:
- The software is optimized to track costs according to each order and product code (for example shirt template A, khaki pants pattern B...)
- Support recorded each stage in the production process, from cutting, sewing, finishing to packing
- Linking data between accounting – inventory – production data uniformly more accurate
So, accounting software, here is not merely the instrument that records the books but also the system provides data management, strategic leadership, to help businesses make decisions of production, price, cost management efficiency.
3. Peculiarities of management accounting in the garment industry
To better understand the role of accounting software apparel, needs to analyze the peculiarities accounting profession in this sector compared to other sectors.
3.1. Production process complex
The garment industry chain stages from processing raw materials to finished products, include multiple steps such as:
- Prepare the raw material (fabric, material)
- Cut, sew
- Finishing and packing
Every stage is incurred labor costs, raw material costs, general expenses. The software should support accounting aggregation and allocation of costs is true, according to stage, in order for businesses to know is:
- Products which are profit or loss
- Stages are incurred cost exceeds the
For example, the same kind of shirt, but if the cost of fabric consumption exceeds the fault cutting software, accounting software can help accounting analysis causes different this cost than planned.
3.2. Track the cost of raw materials and inventory
Raw materials in the manufacture of apparel are very diverse, including fabric, thread, buttons, zippers, labels... The precise control of inventory raw material is the determining factor for the:
- Production planning schedule
- Avoid shortage of raw materials when producing
- Minimize the waste of inventory too much
A accounting software apparel efficiency will allow enterprises to record and track inventory of raw – materials, unfinished products, finished products correctly, from which properly reflect the cost of each order or sample specific products. This helps accounting and leadership quick decisions about the ordering of raw materials or adjust the production plan.
3.3. Calculating cost of production fast, accurate
In the garment industry, the price of products is not simply add up all the cost is then divided by the number of. Business needs to allocate costs according to orders, according to the passage, according to the production time to know the products that really “worth” much.
Accounting software specialized ability:
- Automatic allocation of costs and general expenses (such as electricity, depreciation of the machine) on each order
- Price comparison of reality with the level plan
Help the accountant turns out to be causes of discrepancies, if any, and propose measures to improve production costs. This ability is especially important with production accounting for the garment industry, where the cost of labor, raw materials, often occupy a large proportion in the total cost of production.
4. Accounting software for apparel companies need to have the function of what?
When choosing accounting software apparel, businesses not only need to focus on the basic features such as bookkeeping or reporting, but also to ensure the system fully supports accounting operations textile manufacturing – where the cost of the order, the production process is much more complicated than accounting pure.
Below is the functional group to which an accounting software specialized in the garment industry need, accompanied by practical value that the business receives.
4.1. Management financial accounting standards Viet Nam
Software must ensure recorded and accurately reflect the financial standards accounting Vietnam (VAS) to serve both internal reporting and legal reporting.
The main professional include
- Revenue – Expenses: record the sales revenue, the cost incurred in the period, such as cost of materials, labor, operating costs...
- The debt – Assets – Tax: tracking of assets, customer, supplier; fixed assets; handle VAT, corporate income tax...
- Financial reporting: automatically aggregate the data to the mandatory reporting such as balance Sheet reports the results of business activities report cash flows.
- Settlement tax: support declaration declaration correct tax law, the right term.
A system of financial management standards help businesses:
- Avoid errors accounted for due to the handcrafted;
- Meet the requirements of audit, tax settlement quickly and accurately;
- Are the data reliable service periodic reports and decisions.
Statistics from VCCI showed business investment into the accounting system automatically can reduce 30-40% of the time transaction processing accounting basic than making crafts.
4.2. Accounting price of production according to order apparel
This feature is important with production accounting for the garment industry because this industry produced according to orders and product code diversity, there are many stages directly affect the price.
How it works
The software should allow:
- Set the cost according to your order: Record the whole of the costs incurred in each order from raw material, labor to general expenses.
- Track expenses by product code, stage: each product can go through many steps such as cutting, sewing, finishing... and costs are allocated according to this step by step.
- Price comparison of reality with the norm: compare the actual cost incurred with the cost of the initial payment according to the plan.
Illustrative example
If orders may 1.000 shirts are the cost of raw materials expected 100 million, but the actual cost is 120 million due to increased price of cloth, the software will automatically noted this difference, help accounting and leadership:
- - Defined causes;
- Adjust the level for next time;
- Given determine the selling price accordingly if necessary.
The number of prices of production helps businesses:
- Understand the level of profitability each order;
- There is basis for price negotiations with customers;
- Cost control production in real time.
According to the survey of APQC (American Productivity & Quality Center), business use of management system price exactly can improve gross profit add 5-10% thanks to better control production costs.
4.3. Inventory management of raw materials, semi-finished products
In the garment industry, the number of raw materials are often very much and constantly changing:
- Fabric imported/ domestic;
- Materials such as just, buttons, zippers;
- The product progress at each stage.
If accounting using Excel, the inventory management lead to confusion and inventory losses, supplies and deviations production costs.
The function should have
- Track import – export – inventory details on each type of material;
- Manage inventory of semi-finished products according to the production stage;
- Automatically updates when there arises warehouse import, export warehouse in order.
The inventory management closely to help:
- Reduce the loss of materials of unknown etiology;
- Avoid shortage of raw materials affect the production;
- Have data inventory accuracy to the purchase decision, the forecast demand.
4.4. Contact information accounting data with production and personnel
In fact, accounting data must often closely associated with other parts such as:
- Production: updates production costs according to the segments;
- Hr – pay: cost workers the right to work time at each order.
If accounting software separate operation without contact information with the system manufacturer or scan timekeeper, accounting will have to synthetic data, easily lead to errors and loss of time.
Benefits of data related information
- Automatically allocate labor costs to the correct product code/ order based on timesheet data;
- Reduce errors due to data entry craft;
- Provide data consistency between departments.
For example, when attendance system automatically send data hours of each worker on accounting software costs for each stage will be updated correctly, help accounting production put out statements price timely.
5. Solution accounting software AccNet ERP custom business apparel – textile
In fact deploy accounting garment industry, I noticed a common point in many textile business is: no two production models how completely the same. Business is produced according to orders, FOB, has business machined CMT, have the unit has produced domestic medium directory, even combine multiple forms in the same factory system.
Therefore, the accounting software package available, less the ability to adjust often difficult to fully meet accounting requirements produced the garment industry, particularly in the content such as:
- Track costs by orders – stage – product code
- Allocated costs, general expenses according to the actual production
- Report price of service management, not only serves settlement
AccNet ERP is more business apparel choice not only because meet accounting standards, but also because of their ability to flexibly customized according to the administrative needs of each business. Instead of forcing companies to change the process to “match software”, AccNet ERP allows design accounting systems keep abreast of the way businesses are operating, from production models, inventory management, raw material, to the method of calculating the price.
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TYPICAL CUSTOMERS ARE DEPLOYING ACCNET ERP
- Nitto Denko – control production costs thanks to the application of accounting costing: Nitto Denko has chosen solution AccNet ERP to deploy the system accounting calculating cost ofhelp business control costs more effectively in the production process. After a period of use, company, highly effective, practical system that brings, as well as the degree of stability superior to other software in the market.
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BUSINESS IS WHAT WHEN IMPLEMENTING ACCOUNTING SOFTWARE LAC VIET?
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CONTACT INFORMATION:
- Hotline: 0901 555 063
- Email: accnet@lacviet.com.vn | Website: https://accnet.vn/
- Office address: 23 Nguyen Thi Huynh, Phu Nhuan, ho chi minh CITY.CITY
The greatest value of AccNet ERP lies not in the number of features that business can control the exact cost more, work faster and have reliable data to make decisions in a timely manner. This is the key platform to help businesses garment – textile advanced management capabilities, sustainable competitive in the context of the profit margin is increasingly narrow.
