Accounting and compliance for manufacturers
Factory ledgers that lag behind stores leave stock, GST and TDS figures open to question at the year end. We close the books monthly, prepare financial statements and keep the TDS and MCA/ROC calendars for manufacturing companies, LLPs, firms and multi-entity groups.
Last reviewed 3 October 2026
In many factories the accounts are closed once a year, after the stores, GST and bank figures have already been reported separately. The differences then surface as a bank query on the stock statement or an auditor's note on inventory. From our Nashik office we maintain or review factory books each month and prepare the financial statements. The TDS and MCA calendars for manufacturing companies, firms and LLPs are kept alongside.
Books that match the shop floor
A manufacturer's tax return, its drawing power with the bank and its cost sheet are all drawn from one set of ledgers. If the stores register and the accounts disagree in April, the difference is still there in the stock statement, the tax audit and the auditor's queries months later, by which time the supporting papers are harder to trace. We reconcile the areas below each month. They are general notes, and the law is stated as at 1 October 2026.
Inventory through the month
Raw material, work in progress, finished goods, scrap and goods lying with job workers are posted to the ledger on a fixed cut-off, with GRN and dispatch dates deciding the month. The year-end physical count then tests a system that has already closed twelve times.
Job-work and inter-unit movements
Castings sent out for machining on challan, and the machined parts that return, are posted to the correct stock and expense accounts. Transfers between units are recorded with the same care, so that the GST invoices agree with the books.
Capital work in progress
During an expansion, a CNC machine, its foundation and the installation charges stay in capital work in progress until the machine is put to use. That capitalisation date governs income-tax depreciation and the fixed-asset note in the financial statements.
TDS on the factory cost base
Job-work charges, labour contractors, freight, repair contracts and professional fees each carry their own TDS rules. We compare the expense ledgers with the quarterly statements and correct any gap before the tax audit begins.
MCA calendar for the company and the group
Annual filings, director KYC and the event-based forms that follow an allotment or a new charge are placed on one calendar. Where a family group runs a firm or LLP beside the company, each entity's filings are tracked separately.
Related reading
Full accounting scope: accounting and compliance. Sector context: manufacturing. Year-end sequence: year-end review checklist. To start a discussion, contact the firm.
Common questions
Can you keep books if our accountant sits at the plant?
Yes. We can review and close books maintained in your software, and supporting papers are checked at the unit or shared electronically. Statutory filings are prepared from the Nashik office.
Do Schedule III statements include inventory notes a bank will recognise?
Companies prepare financial statements under Schedule III to the Companies Act, 2013. Inventory policies, related-party notes and contingent liabilities should be complete enough that a bank or investor who reads the statements finds the later stock statement consistent with them.
Our books are several months behind. Where do you start?
A clean-up rebuilds the bank, tax and stock balances and sets a corrected opening position. Routine monthly closing begins once that position is agreed.
Does bookkeeping conflict with statutory audit?
Where we are the statutory auditor of a company, section 144 of the Companies Act, 2013 bars bookkeeping and certain other services for that company and its holding or subsidiary company. This is assessed before an engagement is accepted.
Manufacturing, Accounting and Compliance. See also: Accounting and Compliance, GST and Indirect Tax, Taxation
Contact the firm
About Accounting and compliance for manufacturers, or any related matter. A phone number or an email address is enough for us to reply.
- Office
- Office at Plot 08, Eden Complex, Gangapur Road, Nashik 422222
- Hours
- 9:30 AM to 8:00 PM; other times by appointment