CPA for manufacturing companies · National practice
Strategic Accounting & Tax Advisory for Manufacturers
A manufacturing CPA at Pagac & Company, P.C. helps manufacturing owners manage the financial and tax issues unique to production: inventory and cost accounting, job and product profitability, cash flow, tax planning, R&D credits, cost segregation, financial reporting, acquisitions and succession. Pagac is a CPA, tax, accounting and strategic business advisory firm in Bloomfield Hills, Michigan that has served business owners since 1975, providing strategic accounting, tax planning and business advisory to manufacturing companies nationally. The goal is financial information owners can act on.
The manufacturing practice
Numbers built on production reality
583,300
manufacturing employees in Michigan, August 2026 (BLS, preliminary, seasonally adjusted)
16.2%
of Michigan's GDP came from manufacturing in 2024 (U.S. Bureau of Economic Analysis)
$114.1B
manufacturing GDP generated in Michigan in 2024 (U.S. Bureau of Economic Analysis)
Sources: U.S. Bureau of Labor Statistics, Michigan Economy at a Glance (August 2026 estimate); U.S. Bureau of Economic Analysis state GDP data (2024, NAICS 31-33). Figures are cited for context and are not projections or promises.
What we do
Manufacturing Depth, Service by Service
Each area below is a page of its own with the questions manufacturing owners actually ask, and every one connects to the services behind it.
Accounting & Reporting
Manufacturing Accounting
Manufacturing accounting that holds up to production reality: inventory, WIP, cost accumulation, month-end close and reporting connected to the factory floor.
ExploreManufacturing Cost Accounting
How cost accounting traces materials, labor and overhead into products: job costing, process costing, standard costing and variance analysis for better pricing.
ExploreInventory Accounting for Manufacturers
Inventory accounting done right: valuation methods, work in process, physical counts and shrinkage, so small errors never distort profit and tax for years.
ExploreManufacturing Financial Reporting
The monthly reporting package for manufacturers: product-line margins, inventory and WIP movement, backlog, capacity and variance to plan, reviewed every month.
ExploreTax Strategy
Manufacturing Tax Planning
Tax planning for manufacturers: cost of goods sold, inventory and UNICAP, equipment and facilities, sales and use tax, credits and incentives, planned in advance.
ExploreR&D Tax Credit for Manufacturers
How the federal R&D tax credit (IRC Section 41) applies to manufacturers: qualifying activities, qualified research expenses, claiming on Form 6765.
ExploreCost Segregation for Manufacturing Facilities
Cost segregation for plants and facilities: reclassifying production-specific components into shorter depreciation lives, subject to an engineering study and tax law.
ExploreFinancial Management
Manufacturing Cash Flow
Managing the manufacturing cash cycle: materials, work in process, receivables and seasonality, with rolling forecasts that keep growth from running dry.
ExploreVirtual CFO for Manufacturers
CFO-level analysis for manufacturers: unit economics, product-line margins, cash conversion, capital decisions and lender-ready reporting without a full-time hire.
ExploreGrowth & Ownership
Manufacturing Mergers & Acquisitions
Buy and sell side M&A for manufacturers: diligence on inventory, customers, equipment and real estate, working capital mechanics, structure and integration.
ExploreManufacturing Business Valuation
Valuing a manufacturing business: normalized earnings, customer concentration, margin durability, equipment and key personnel, documented and defensible.
ExploreManufacturing Succession Planning
Long-horizon succession for manufacturers: leadership development, ownership transfer, internal buyouts and employee ownership, structured over years.
ExploreManufacturing Exit Planning
Preparing a manufacturing exit with options: sale, internal transition or employee ownership, with readiness, tax strategy and transition built in advance.
ExploreEvidence
How We Help Manufacturers
Manufacturing · Case study
The Manufacturer Who Took Back Control of His Numbers
Unreliable monthly reporting was hiding real costs. A rebuilt accounting foundation exposed the pattern and restored trust in the numbers.
Read it
Manufacturing · Case study
The Founder Who Exited on His Own Terms, Without Selling
A succession structure built over more than twenty years and two leadership transitions let a founder step back while keeping the business whole.
Read it
Manufacturing · Case study
The Buyer Who Wouldn't Walk Away
A manufacturing acquisition that closed in late December, with the building structured through a separate company, still illustrates how structure protects value.
Read itQuestions manufacturers ask
Direct Answers First
Every page in the manufacturing library opens with the answer, then builds the detail. If your question is not here, bring it to a consultation.
Ask a Pagac AdvisorWhat does a manufacturing CPA do?
A manufacturing CPA helps manufacturers manage industry-specific financial and tax issues: inventory and cost accounting, job and product profitability, cash flow, tax planning, credits such as the R&D credit, capital investment, financial reporting, acquisitions and succession. The goal is financial information owners can act on.
Why do manufacturers need specialized accounting?
Manufacturers carry costs through raw materials, work in process and finished goods, and allocate overhead across products. General bookkeeping does not capture those flows accurately, so profit can be misstated even when books balance. Specialized manufacturing accounting ties production activity to the financial statements.
How can manufacturers improve financial reporting?
Start with a consistent monthly package: a P&L against budget, gross margin by product line, inventory and WIP movement, backlog, a cash forecast and a balance sheet review. Consistency month over month is what makes anomalies visible. Pagac also rebuilds reporting from source data when existing reports cannot be trusted.
How do manufacturers calculate true product profitability?
Through cost accounting: direct materials, direct labor and a defensible allocation of manufacturing overhead assigned to each product or job. With true product costs, owners can run contribution analysis, price honestly and see which products deserve capacity and investment.
Can manufacturers qualify for the R&D tax credit?
Yes, where activities meet the statutory test under IRC Section 41: research that is technological in nature, intended to develop a new or improved business component and conducted through a process of experimentation. Examples include new products, process improvements, tooling and prototypes. Qualification is factual and must be documented.
How should a manufacturing owner prepare for succession?
Start early, usually years or a decade ahead: develop leadership, transfer ownership deliberately through family, internal or employee-ownership structures, and fund the transfer from the business itself. Pagac has helped manufacturers structure transitions spanning more than twenty years and multiple leadership changes.
Reach
National Service From One Office
Pagac & Company is based in Bloomfield Hills, Michigan, and serves qualifying manufacturing businesses across the country, in person and remotely, from that single verified office. The firm does not maintain offices in other cities; national reach comes from industry depth, not from location count.
Metro Detroit roots
Decades serving the manufacturing economy of Southeast Michigan.
Michigan depth
Inventory, cost, credits and capital questions specific to manufacturing.
National reach
Remote advisory for qualifying clients across the United States.
Manufacturing advisory
Bring the numbers back under your control.
Whether you need cleaner reporting, better costing, a tax review or a successor in place, start with a conversation about your manufacturing business.