Outsourced finance director for manufacturers

A part-time finance director for manufacturing businesses: stock valued at every month end, a standard cost for each product, margin by product line and a plan for capital spend. Peter Allen, Buzz’s Financial Director, with the bookkeeping, payroll and VAT done by the Buzz finance team. From £2,000 + VAT a month.

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Finance work in a manufacturing business

Your factory’s figures, every month

Closed in Xero within five working days of the month end, with stock in the figures.

Stock and work in progress

Stock counted or reported at each month end and valued at the lower of cost and estimated selling price less costs to complete and sell (FRS 102, section 13).

Standard costing

A standard cost for each product from materials, labour, and machine time and overhead, with each month’s variances explained by price, usage or efficiency.

Margin by product

Sales and gross margin for each product line and each major customer, so the board sees which products cover the cost of running the factory.

Capital spend

Each machine planned into the forecast: the deposit, the finance repayments, the extra output and the capital allowances that reduce Corporation Tax.

Standard cost per unit

Materials: £14.20
Labour: £6.40
Machine time and overhead: £4.90
Standard cost: £25.50

Sold at £38.00, the product makes £12.50 a unit. A £1.80 rise in materials cuts that to £10.70.

An illustrative example. The product is invented and every figure is made up.

A standard cost for one product

A standard cost shows what each unit should cost to make. The monthly variance report shows where the cost moved away from it.

When a supplier puts up the price of a material, the variance appears in that month’s board pack. The board then decides between a price rise, a different supplier or a change to the product, with the effect on the forecast in front of it.

Capital allowances on new machinery

The Annual Investment Allowance gives relief on most plant and machinery up to £1 million a year (GOV.UK).

Companies can also claim full expensing: a 100% first-year allowance on new and unused main rate plant and machinery, now permanent. Cars are excluded, and the relief is for companies paying Corporation Tax (GOV.UK, permanent full expensing).

Peter times a machine purchase against the plan and the forecast: the deposit, the finance repayments, the extra output and the Corporation Tax saved in the year of purchase.

Buzz is not authorised by the FCA, so a recommendation of a particular lender, investor or financial product is referred to an authorised firm.

Peter Allen, co-founder and Financial Director of Buzz Accounting

Peter Allen is your finance director

Peter is Buzz’s co-founder and Financial Director, with more than 20 years’ experience. He writes the one-page plan with you, owns the forecast and the KPI dashboard, and runs your quarterly board meeting.

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More on the finance director service

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Questions from manufacturers

Can you set up standard costing?

Yes, where production records give the materials, labour and machine time for each product. The standard costs are reviewed at least once a year in the annual plan.

Do you count our stock?

Stock is counted by your team or reported from your stock system, and the Buzz finance team values it in the monthly management accounts.

Can you help with a machine bought on finance?

We build the purchase into the forecast and the plan, and work out the capital allowances. Buzz is not authorised by the FCA, so a recommendation of a particular lender, investor or financial product is referred to an authorised firm.

How much does a part-time finance director cost?

From £2,000 + VAT a month. The fee includes the day-to-day finance work as well: weekly bookkeeping in Xero, payroll and expenses, VAT returns, a monthly board pack, customer invoicing and chasing, supplier payments and cash monitoring. The fee is confirmed in writing before work starts.

Talk to us about a finance director for your factory

Tell us about the business and what you need. A named person replies within one working day.

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