Digitalisation changes the markets at an incredible speed, so many companies choose financial closing solutions that integrate real-time data with better decisions. The manufacturing industry is not an exception to this trend. A timely and accurate financial close is crucial for making informed strategic decisions, ensuring compliance and fostering long-term trust.
Yet, many manufacturing companies still struggle with outdated processes and manual tasks that delay close activities. That's where finance close solutions come in. In this blog, we'll explore the key benefits of adopting finance close solutions and highlight the trends that ensure a smooth and accurate close.
What Is Manufacturing Finance?
Manufacturing finance refers to the financial management practices, processes and strategies specific to this industry. Within the framework of industrial operations, it covers everything from financial reporting and capital investment choices to budgeting and cost control.
Unlike general finance functions, manufacturing financial operations must account for the unique challenges of a production-based environment, such as:
- Inventory valuation
- Cost of goods manufactured (COGM) and cost of goods sold (COGS)
- Production efficiency
- Supply chain financing
- Waste management analysis
Professionals in the field evaluate production costs, monitor profit margins and forecast demand and capacity. They help businesses increase profitability and competitiveness by implementing strong strategies and aligning financial planning with operational performance.
Benefits of Finance Close Solutions in Manufacturing
Finance professionals can highlight both cost savings and revenue prospects by using predictive analytics to model the long-term benefits of these investments. Finance close solutions offer manufacturing businesses many benefits, such as:
- Improved Accuracy and Compliance: Finance close options reduce manual errors by automating data entry and reconciliation tasks. This automation enhances compliance by maintaining consistent audit trails and ensuring adherence to accounting standards.
- Faster Close Cycles: By streamlining and automating repetitive processes, finance close alternatives shorten the time needed to complete month-end and year-end closes. Faster close cycles enable finance teams to deliver timely insights that support agile business decisions.
- Increased Visibility and Control: These solutions provide real-time dashboards and detailed reporting, giving finance leaders clear visibility into the close process. Improved control reduces risks and allows for quicker identification and resolution of discrepancies.
- Resource Optimisation: Automating routine tasks frees finance professionals to focus on higher-value activities such as strategic analysis and planning. This leads to better use of talent and cost savings across the manufacturing finance department.
- Scalability and Flexibility: Modern finance close solutions can easily scale to accommodate multi-plant operations and growing business complexity. Their flexibility allows organisations to adapt quickly to regulatory changes and evolving market conditions.
With these advantages, the entire manufacturing finance process can be managed more efficiently and effectively. Accurate entries in manufacturing finance books are essential for tracking production costs and ensuring effective budget management.
Key Trends of Manufacturing Finance Close Solutions
As manufacturing companies face increasing complexity and global competition, the financial close process needs to stay up to date. Below are the key trends making the future of finance close solutions in the manufacturing sector.
1. Improving Manufacturing Costs
Controlling and reducing manufacturing costs is essential for maintaining profitability and staying competitive. By identifying inefficiencies and optimising resource usage, manufacturers can significantly improve cost performance without compromising quality or output.
2. Strategic Planning for Global Supply Chain
Effective supply chain management requires endurance and awareness. By creating a strategic plan, manufacturers may predict disturbances, expand their sources and create flexible networks that can endure environmental, geopolitical and economic difficulties.
3. Creating Value
Creating value goes beyond cost reduction. It involves enhancing efficiency, improving product quality and strengthening customer relationships. By aligning financial strategy with operational goals, there are possibilities for new opportunities for growth, innovation and sustainable success.
4. Adoption of AI and Machine Learning
Artificial intelligence (AI) and machine learning (ML) are revolutionising the financial close process by enabling advanced data analysis, predictive forecasting and automation of complex tasks. In manufacturing, these technologies help finance teams detect anomalies, streamline reconciliations and make faster decisions based on real-time insights.
5. Increased Focus on ESG and Sustainability Reporting
ESG reporting is becoming more and more important in financial disclosures, especially in the manufacturing industry. In order to meet legal requirements, encourage transparency and satisfy stakeholders' increasing desire for sustainable practices, finance teams must integrate ESG data into the closure process.
6. Integrated Finance Ecosystems
Finance close solutions are increasingly part of integrated ecosystems that connect ERP, supply chain, production and business intelligence platforms. This interconnected approach allows for seamless data sharing, reduced manual effort and a unified view of operational and financial performance.
5 Top Manufacturing Finance Software Options
Here are 5 top manufacturing finance software platforms, widely recognised for supporting financial management, planning and close processes in the manufacturing industry:
- Aico: Offers a financial close automation platform that is well-suited for manufacturing finance operations. Aico's platform addresses the complex financial processes common in large enterprises, including those in manufacturing. It integrates seamlessly with major ERP systems such as SAP, Oracle and Microsoft Dynamics 365, facilitating real-time data access and validation. Its robust features and integrations make it a valuable tool for manufacturing companies aiming to enhance their financial close processes.
- Blackline: Focused on financial close and everything in between. It automates the financial task management and approval workflows.
- Prophix: Offers various financial and accounting tools and processes that can be used in manufacturing, too, for efficient closing by the end of the given period.
- Oracle NetSuite: A cloud-based ERP system ideal for mid-sized manufacturers, offering integrated financials, inventory management, production planning and automated financial close capabilities.
- Infor CloudSuite Industrial (SyteLine): Designed specifically for manufacturing, this solution offers strong financial functionality alongside production scheduling, inventory management and cost tracking.
Choosing the right finance software is essential for streamlining operations, ensuring financial accuracy and supporting strategic growth. Each of these solutions offers unique strengths, so selecting the best fit depends on your organisation's size, complexity and specific financial goals.
Conclusion
Manufacturing finance close solutions are transforming how companies manage their financial close processes by improving accuracy, accelerating timelines and enhancing visibility across operations. By focusing on key activities such as automation, data integration and continuous improvement, finance teams can not only streamline closing but also provide deeper insights that drive better strategic decisions and long-term business success.