6 Best Accounting Software for Small Manufacturing Businesses | Fit Small Business

6 Best Accounting Software for Small Manufacturing Businesses

The best accounting software for small manufacturing businesses includes key features, such as inventory management, bill of materials (BOM) management, work order management, cost accounting, and inventory management. It could be an enterprise resource planning (ERP) solution, a general-use bookkeeping software with inventory integrations, or a specialized manufacturing software that integrates with QuickBooks Online or…

Jul 31, 2024
9 minute read

The best accounting software for small manufacturing businesses includes key features, such as inventory management, bill of materials (BOM) management, work order management, cost accounting, and inventory management. It could be an enterprise resource planning (ERP) solution, a general-use bookkeeping software with inventory integrations, or a specialized manufacturing software that integrates with QuickBooks Online or Xero.

That said, here are our top six best accounting software for manufacturing companies:

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Comparison of Best Accounting Software for Manufacturing


Monthly PricingNumber of UsersFree Trial
Microsoft Dynamics 365 logo$70 or $100 per full user license• A full user license gives users access to all of D365’s core features.
• A team member license offers access to view data, approve workflows, and add or update information. Additional team member licenses are $8 per user, per month.


Unlimited30 days
Visit Microsoft Dynamics 365 Business Central
QuickBooks logo.

QuickBooks Enterprise

From $1421 to 40✕Enterprise comes with a 60-day money-back guarantee.  
Visit QuickBooks Enterprise
QuickBooks logo.

Plus or Advanced

$115 or $2755 or 2530 days
Visit QuickBooks Online
Katana logo.$199 to $1,799Unlimited
Visit Katana Manufacturing ERP
SAP Business One logoQuote-basedUndisclosed
Visit SAP Business One
Odoo logo.$0 to $17115 days
Visit Odoo

Interested in evaluating other accounting platforms?

Check out our guide to the

best small business accounting software

.

Microsoft Dynamics 365 Business Central: Best Overall Accounting and Manufacturing Software Within ERP

Deployment TypeDesktop or cloud
Free Trial30 days; no credit card required
Discount
Customer SupportPhone support, email, live chat, community forums, and a help center
Average User Review Rating3.9 out of 5 based on G2
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QuickBooks Enterprise Diamond: Best Standalone Desktop Accounting Software for Manufacturers

Deployment TypeDesktop or cloud
Free Trial30 days; no credit card required
Discount
Customer SupportPhone support, email, live chat, community forums, and a help center
Average User Review Rating3.9 out of 5 based on G2

QuickBooks Online: Best Easy-to-Use Accounting Software for Small-scale Manufacturers

Deployment TypeCloud-based
Free Trial30 days; no credit card required
Discount50% off for three months; can’t be combined with the free trial
Customer SupportPhone support (callback or direct), live chat, chatbot, and self-help guides
Average User Review Rating4.3 out of 5; check out users’ feedback in our QuickBooks Online review
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Katana Manufacturing ERP: Best Manufacturing-specific ERP

Deployment TypeCloud
Free Trial
Discount
Customer SupportPhone support, email, online guides, and an implementation package worth $600
Average User Review Rating4.7 out of 5

SAP Business One: Best ERP for Fast-growing Manufacturers

Deployment TypeOn-premise or cloud
Free Trial
Discount
Customer SupportPhone support, live chat, and online guides
Average User Review Rating4.3 out of 5 based on Capterra
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Odoo: Best for Manufacturers Selling Directly to Customers

Deployment TypeCloud or on-premise
Free Trial15 days; no credit card required
Discount
Customer SupportOnline form, chat support (via WhatsApp), phone support, and online guides
Average User Review Rating4.1 out of 5 based on Capterra

How We Evaluated the Best Accounting Software for Small Manufacturing Businesses

To determine the best accounting software for small manufacturing businesses, we looked into several factors.

  • Pricing: Most small manufacturers would be concerned about the monthly or annual cost of the software. In this guide, we included products with different pricing structures that may be affordable or expensive, depending on your budget and ability to pay.
  • Feature set: We looked into specialized features, such as inventory management, cost accounting, BOM management, production planning, work order management, and detailed financial reporting.
  • Manufacturing software integration: The accounting platform should integrate directly with the manufacturing software for ease of use. However, it would be better if the user could get all the features in one software. That’s why our guide includes ERP and non-ERP software to aid in decision-making.
  • Scalability: The solution should be scalable easily to the growing needs of the manufacturing business. As much as possible, we want you to choose one that is powerful enough to last for years to avoid frequent data migration as your business grows and needs more features.
  • Ease of use: Sometimes, advanced features come at the cost of ease of use. We included products with different levels of ease of use to help you decide which trade-off you are willing to take. Do you want to go for easy-to-use software that will compromise features? Will you want to learn a more complex platform but get advanced functions?
  • Comprehensive reporting: Manufacturing involves tracking of materials, labor, and overhead. The software you go with must have comprehensive reporting capabilities so that you can analyze all kinds of data from different sources.
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Frequently Asked Questions (FAQs)

Dedicated software for manufacturing helps you track inventory costs and production on a deeper and more detailed level than with accounting software alone. With manufacturing software, you can influence the tiniest details—such as markups, margins, and overhead rates—which is not possible with general accounting software.

The best accounting software for your manufacturing business depends on your budget and needs. If you have a limited budget and have simple requirements, you may do well with QuickBooks Online or the free Odoo app. If you have complex needs, you should consider an ERP solution like D365 or SAP B1.

Bottom Line

The best accounting software for small manufacturing businesses should provide you with the needed solutions for your accounting needs. It should help you keep track of manufacturing costs and ensure that manufacturing processes remain profitable and sustainable.

Tim Yoder, Ph.D., CPA

Tim worked as a tax professional for BKD, LLP before returning to school and receiving his Ph.D. from Penn State. He then taught tax and accounting to undergraduate and graduate students as an assistant professor at both the University of Nebraska-Omaha and Mississippi State University. Tim is a Certified QuickBooks ProAdvisor as well as a CPA with 28 years of experience. He spent two years as the accountant at a commercial roofing company utilizing QuickBooks Desktop to compile financials, job cost, and run payroll. Tim has spent the past 4 years writing and reviewing content for Fit Small Business on accounting software, taxation, and bookkeeping.

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