Accounting & Bookkeeping ยท KBLI 14111

Textile Confection Industry Accounting

The Indonesian confection and garment industry has high production volume with many product variations (t-shirts, shirts, pants, jackets) each with different material specifications and production costs. Without proper costing systems, confection entrepreneurs struggle to determine correct selling prices and control material waste. Arunika Consulting helps confection industry actors manage efficient bookkeeping from order recording, per-item costing, to accurate financial reports.

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What usually goes wrong

  • Many Product Variations with Different Costing

    Each clothing type has different material composition, stitch count, and accessories, making per-item costing complex.

  • Fabric Waste

    Significant fabric offcuts need to be recorded to calculate accurate actual COGS.

  • Custom Orders with Diverse Specifications

    Custom orders from clients have different specifications affecting production costs and timelines.

  • Multi-Category Raw Material Management

    Fabric, thread, zippers, buttons, and other accessories need to be separated in the inventory system.

What we do

  1. 01

    Per-Item Production Costing

    Costing system calculating material, labor, and overhead costs per clothing type with its specifications.

    • Accurate COGS per item
    • Correct selling price
    • Measurable margin per product
  2. 02

    Fabric Utilization Tracking

    Monitoring fabric usage per order to calculate waste rate and optimize cutting layout.

    • Raw material savings
    • Waste rate control
    • Cutting optimization data
  3. 03

    Job Costing for Custom Orders

    Cost recording per client order with different specifications for per-order profitability evaluation.

    • Clear profit per order
    • Data-driven pricing
    • Order cost control

Related regulations

  • SAK EMKM

    Accounting Standards for Micro, Small, and Medium Entities

    Simplified reporting framework for confection industry SMEs

  • PSAK 14

    Inventories

    Recording of fabric, thread, accessories, and finished products in various stages

  • PP 34/2020

    SME Final Income Tax

    Final income tax recording for confection businesses with turnover under IDR 4.8 Billion

If the tax office starts asking questions

The team that keeps your books and files your taxes also stays with you through an SP2DK, an audit, an objection and an appeal.

How we handle tax disputes

Frequently Asked Questions

How to calculate accurate garment COGS?

COGS = Material cost (fabric + accessories) + Direct labor cost + Factory overhead allocated per item.

How to record fabric offcuts?

Usable offcuts are recorded as scrap inventory with estimated value. Truly wasted material is recorded as expense.

How do accounting services improve operating cost efficiency?

Accurate, timely financial reports help you spot cost leakage, monitor margins by product or service, and make data-based decisions.

Can financial reports be accessed in real time?

Yes. We use cloud accounting systems so you can monitor cash flow, profit and loss, and business performance from anywhere.

How do you ensure reports are ready for external audits or banks?

Reports are prepared with clear documentation and traceable transaction data.

Related Industries

Tell us about your business

Send your line of business, rough annual turnover, and what is going wrong. We reply on WhatsApp.

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