A full production schedule doesn't automatically mean a healthy bottom line. Steel and other metal inputs fluctuate. Labour and overtime add up. Machines need maintenance. Scrap eats into material margins. Inventory ties up cash. And when a quote was based on yesterday's costs, today's job can look very different on the books.
In the metal fabricator industry, accounting should be more than just a transaction log. You must understand the cost of each job, where the margins are thin, how much cash is currently invested in production and your tax situation prior to the year-end. Online Accountant offers a range of accounting and tax packages depending on the size of your metal fabrication business and your specific needs, along with day-to-day accounting, tax planning, financial reporting and analysis that will help you run a more profitable business in Canada.
Metal Fabrication is a very cost-conscious business. From manufacturing structural steel, making custom components, sheet metal products, machinery parts, railings, to any specialized industrial fabrication, there is a need to control costs from initial production through to the finished product. Your accounting needs to account for more than sales and expenses. It needs to capture:
The financial data that tells the real story of what's actually going on on your shop floor, and not just in your bank account.
A small custom fabrication shop shouldn't pay for the same accounting setup as a growing manufacturer running multiple production lines.
We'll assess your business and recommend a fixed monthly accounting package based on factors such as transaction volume, payroll, inventory complexity, reporting requirements, tax obligations, and growth plans.
Your package can bring together:
A small custom fabrication shop shouldn't pay for the same accounting setup as a growing manufacturer running multiple production lines; your package can evolve with you.
One monthly fee. The right level of support. No surprise accounting bills.
The right financial KPIs can tell you where your next dollar of profit is hiding.
We can help you track gross margin by job, material cost variance, labour and overtime percentage, scrap and waste costs, machine utilization, inventory turnover, work-in-progress, production cost per unit, accounts receivable aging, and cash flow and operating margins.
These numbers can help you more accurately price out your custom jobs, find jobs that are not doing well, manage your production costs, decide which equipment to choose, and plan for growth.
Your accounting system doesn't have to work alone.
Metal fabrication businesses commonly use manufacturing and job-shop platforms such as JobBOSS², ProShop ERP, E2 Shop System, Global Shop Solutions, Odoo, and Katana for quoting, scheduling, inventory, job costing, production tracking, and shop-floor records. JobBOSS², for example, connects quoting, inventory, labour tracking, job costing and accounting, while ProShop provides integrated job, quality, inventory and production management.
We can work alongside your existing systems and connect the operational picture with your financial reporting. As a Xero Gold Champion Partner and QuickBooks Online Elite ProAdvisor, Online Accountant can help keep your accounting data organized, accessible, and useful.
For fabrication businesses, tax planning shouldn't begin when the books are being closed.
We can help you plan around equipment and machinery purchases, eligible business deductions, depreciation, owner compensation, GST/HST, corporate tax obligations, and other opportunities to manage your tax position throughout the year.
The goal isn't simply to file accurately. It's to avoid unnecessary tax surprises and make financial decisions with the tax consequences in view.
Whether you need bookkeeping and tax support or a complete outsourced accounting function, we'll recommend a fixed-fee package tailored to your fabrication business.
Describe your shop's operation, and we'll suggest the appropriate level of service for a fixed, monthly cost.
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