5 financial mistakes that manufacturing & utilities companies make (and how to fix them)

Running a manufacturing or utilities business means juggling a lot: supply chains, inventory, machinery, compliance, workforce management, and more. With so much operational complexity, manufacturing and utilities companies can sometimes unintentionally make common financial errors.

Forgetting to enter data into a spreadsheet. Manually reconciling transactions. Only using your accountant for help with compliance. While these mistakes might only seem small, they can compound and cause serious issues over time. 

According to recent QuickBooks data, nearly 30% of firms in the manufacturing and utilities sector struggle to track profitability, while more than a third lack visibility over their cash flow. This not only makes it difficult to operate day-to-day, but also makes it nearly impossible to plan for the future. 

Sound familiar? Don’t worry. This article draws on the data from our recent research, which we used to create our Growing Pains: Typical Mistakes That Hold Growing SMEs Back report. It outlines the most common financial mistakes that companies in the manufacturing and utilities companies make, and how to fix them. 

1. Blind spots in profitability

Manufacturing and utilities businesses often run multiple operations at once—different product lines, job sites, contracts, or service categories. However, nearly 30% of firms in the sector say they struggle to see which parts of the business are actually profitable.

That lack of clarity has real consequences. Businesses may be investing time and money in low-margin areas without realising it. Others may be missing opportunities to double down on the parts of the business that are driving returns.

Often, the problem isn’t that the data doesn’t exist—it’s that it’s scattered. Businesses rely on spreadsheets, legacy systems, or finance tools that don’t surface insights clearly or in real time.

The fix

The fix is surprisingly simple: smarter reporting tools and better support from your accountant. QuickBooks Advanced lets you track profitability by job, product line, or location—so your data flows automatically into clear, easy-to-view dashboards. With less time spent on admin, your accountant can focus on analysis that drives better planning and sharper decision-making. 

2. Not consulting financial reports 

You can’t plan for what you can’t see. And yet, 29% of Manufacturing & Utilities SMEs say they struggle to use financial reports for decision-making.

For businesses dealing with volatile costs, large supplier contracts, or project-based work, flying blind is especially risky. This might be because many firms are stuck creating reports manually, which means they only gain a true view of their numbers days or weeks later. Or, perhaps they simply don’t have the time to analyse their reports properly.

The result? Decisions are made reactively, often based on gut feel rather than financial fact. Opportunities are missed. Risks are spotted too late.

The fix

Manufacturing and utilities companies should consider transitioning away from creating backward-looking reports and embrace tools that provide real-time insights. This is where QuickBooks Advanced can help. It generates customisable, up-to-date reports at the click of a button—meaning your team and accountant can stop reacting and start planning.

3. Cash flow tracking that doesn’t keep up

38% of businesses in the sector say they struggle to keep track of cash flow. That’s a big concern in industries with long payment cycles, large capital costs, and seasonal demand fluctuations.

Without accurate forecasting, businesses can overextend themselves or miss the chance to invest when cash is available. Worse still, they may only realise they’re in trouble when supplier payments bounce or payroll pressure hits.

These aren’t one-off slip-ups. They’re system issues. Manual tracking and slow bank reconciliations can make it hard to know where you stand—even when the business is doing well on paper.

The fix

Integrated cash flow forecasting tools that show real-time inflows and outflows, linked directly to your accounts and operational data. QuickBooks Advanced gives you a live view of your cash position, helping you manage long payment cycles, plan ahead, and invest with confidence.

4. Manually managing financial compliance 

In manufacturing and utilities, regulatory compliance is a constant concern. From VAT and payroll rules to sector-specific requirements like environmental levies or compliance reporting, there’s a lot to stay on top of.

That might explain why 40% of firms in the sector cite regulatory complexity as a major financial challenge.

The issue isn’t just the volume of regulation—it’s the pace of change and the administrative burden. If finance teams are relying on outdated systems or manual processes, staying compliant becomes both time-consuming and error-prone. Perhaps that’s why 30% of companies in the sector have paid a penalty due to a late or incorrect tax filing. 

Unfortunately, accounting mistakes like these can be costly. 26% of manufacturing and utilities companies that have made an accounting mistake have paid £10,001 – £20,000 in penalties, while 29% have paid £5,001 – £10,000.

The fix

Switch to accounting tools built for compliance, with automatic updates and built-in checks. QuickBooks Advanced stays current with tax rules and regulatory changes, helping your team reduce risk, stay audit-ready, and reclaim time from manual tasks.

5. Using accountants for compliance, not growth

Most manufacturing and utilities firms have an accountant. However, many don’t make full use of them. While 60% rely on accountants for tax, only 31% use them to help with cash flow—and just 21% for budgeting and forecasting.

That means businesses are missing out on critical strategic input. In complex, margin-sensitive businesses, accountants can do more than file returns. They can help you make sense of your numbers, plan for what’s ahead, and identify where your best opportunities lie.

When manufacturing and utilities businesses treat accountants purely as a compliance resource, they miss out on one of the most valuable sources of financial guidance available.

The fix

See your accountant as a genuine growth partner and lean on their expertise to plan your business’s future. Analysing real-time data via QuickBooks Advanced, your accountant can spot trends, run forecasts, and guide strategic decisions—helping your business scale sensibly.

Final thoughts

Manufacturing and utilities businesses are built for precision, scale, and reliability. Your finance function should be no different.

But as our research shows, too many firms in the sector are operating with blind spots—limited visibility into profitability, underused reports, cash flow uncertainty, and mounting compliance pressure. And while many work with accountants, they’re not always unlocking their full value.

The good news? These mistakes are easily fixed.

With the right mix of automation and expert support, finance can move from bottleneck to growth engine. You get clearer insights, tighter control, and faster decisions—so your business can scale with confidence.

See how QuickBooks Advanced helps manufacturing and utilities firms get ahead. Book a free demo today.

Or, discover the common growing pains that scaling SMEs across all sectors face by downloading our report, Growing Pains: Typical Mistakes That Hold Growing SMEs Back.

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