Industry · Manufacturing

Accounting and audit for manufacturing companies in Tunisia

Automotive components, electronics, food processing, export subcontracting, chemicals and pharmaceuticals: Tunisian manufacturing combines cost accounting, inventory valuation and export tax regime issues that call for specific accounting expertise.

Reference valuation: 6× EBITDA (indicative median).

The sector's accounting and financial issues

Cost of production and inventory valuation

This is the heart of the industrial subject. The inventory valuation method, the absorption of indirect production costs, the treatment of under-activity and the write-down of slow-moving items have a direct effect on profit and on the true and fair view of the accounts. Reliable cost accounting is the precondition of credible margin management.

Export regimes and applicable taxation

Many Tunisian manufacturers operate under export-oriented regimes, with consequences for VAT, customs duties and corporate income tax. The qualification of flows, the management of tax suspensions and the separation of local and export activities are recurring control points.

Fixed assets and investment cycles

Monitoring of the fixed asset register, consistency between the physical inventory and the accounts, depreciation schedules, impairment testing of production equipment: this work conditions the reliability of the industrial balance sheet.

How we work in this sector

Statutory and contractual audit

Our industrial audits include the observation of physical inventories, the review of valuation methods for inventories and work in progress, the reconciliation between the fixed asset inventory and the accounts, and the examination of off-balance-sheet commitments linked to investments.

Accounting and outsourcing

Bookkeeping and payroll, tax and social filings, set-up and reliability of cost accounting, group-format reporting for subsidiaries of foreign groups, consolidation.

Transaction advisory

Valuation of industrial companies, financial due diligence for acquisitions or disposals, financial modelling and fundraising support. EV/EBITDA multiples in manufacturing sit around an indicative median of 6 times according to the MGI BFC Index.

Points of attention

  • Inventory valuation method and absorption of indirect costs
  • Treatment of under-activity and scrap
  • Qualification of export flows and management of VAT suspensions
  • Reconciliation of physical inventory and fixed asset register
  • Write-down of slow-moving inventory

Related resources

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