본문으로 건너뛰기

Finance Function

Mission​

Ensure financial health and transparency through rigorous accounting, strategic budgeting, and real-time cost management that supports both creative excellence and business sustainability in the custom fashion industry.

Scope​

  • Accounting and financial reporting (monthly, quarterly, annual)
  • Accounts Payable (AP) and Accounts Receivable (AR)
  • Budget planning and cost management
  • Financial analysis and forecasting
  • Fashion-specific cost tracking (fabric, production, margin analysis)
  • Invoice processing and payment coordination
  • Tax compliance and audit support

Key Responsibilities​

Accounting Operations​

The backbone of our financial operations is maintaining accurate, real-time records of every transaction. This means tracking fabric purchases from suppliers in Korea and internationally, recording production costs for each custom piece, and managing payments to contractors and staff. We use QuickBooks as our primary accounting system, with daily reconciliation to ensure nothing slips through the cracks.

Every custom costume order generates unique cost structures—fabric costs, labor hours, embellishments, shipping—and our accounting team ensures these are captured accurately so we know our true margins on every project.

Accounts Payable (AP)​

Managing vendor payments is critical in the fashion industry where relationships matter. We process payments to fabric suppliers, trim vendors, freelance seamstresses, and service providers. The AP team ensures invoices are verified against purchase orders, approved by the appropriate role (usually Production Manager or Design Director), and paid on time to maintain good supplier relationships.

For international suppliers, this includes managing currency conversions and wire transfer fees—important when sourcing specialty fabrics from Italy or Japan.

Accounts Receivable (AR)​

On the revenue side, we track client invoices from initial deposit through final payment. Custom costume projects typically follow a payment schedule: 50% upfront, 30% at first fitting, 20% on delivery. The AR team monitors these milestones, sends payment reminders, and coordinates with Sales to resolve any payment issues.

For B2B clients (production companies, theaters), we manage net-30 or net-60 payment terms and handle collections when needed.

Budget Planning​

Each quarter, Finance collaborates with department heads to plan budgets aligned with our strategic goals. This includes forecasting fabric costs based on upcoming orders, staffing needs for production capacity, marketing spend for client acquisition, and capital expenditures for new equipment (sewing machines, studio lighting, etc.).

We track budget vs. actuals weekly and provide variance reports to leadership so we can course-correct quickly if costs are trending higher than expected.

Cost Management​

Fashion is a margin-sensitive business. We track cost per garment, cost per production hour, and overall project profitability. The Finance team provides real-time dashboards showing:

  • Fabric cost as percentage of order value (target: \<30%)
  • Labor cost per hour (target: $45-65 depending on complexity)
  • Gross margin per project (target: >40%)
  • Overhead allocation to ensure fixed costs are covered

This granular cost tracking helps Sales price new projects accurately and helps Production identify inefficiencies.

Financial Reporting​

We produce monthly financial statements (P&L, balance sheet, cash flow) for leadership and investors. These reports include fashion-specific metrics like cost-per-piece, average order value, and margin by client segment (theater vs. film vs. events).

Quarterly board reports include trend analysis, forecasts, and strategic recommendations based on financial performance.

Production Cost Analysis​

One of our unique responsibilities is analyzing production costs at the SKU level. For each costume piece, we track:

  • Direct materials: Fabric, trim, buttons, zippers, embellishments
  • Direct labor: Hours spent by pattern makers, cutters, sewers, finishers
  • Overhead allocation: Studio rent, equipment depreciation, utilities

This analysis feeds back to Design and Production to optimize processes and inform pricing decisions.

Core Processes​

Tools & Systems​

  • QuickBooks Online: Core accounting system for all transactions
  • Notion: Budget tracking, invoice status, financial dashboards
  • Google Sheets: Cost analysis models, margin calculators, forecasting
  • Slack: #finance channel for approvals and coordination
  • Wise (formerly TransferWise): International payments to suppliers
  • Bill.com: AP automation for vendor payments
  • Stripe: Online payment processing for client deposits

Key Metrics​

  • Gross Margin (target: 42%+) - Revenue minus direct costs
  • Operating Margin (target: 15%+) - Profit after all expenses
  • Days Sales Outstanding (DSO) (target: \<45 days) - How quickly clients pay
  • Days Payable Outstanding (DPO) (target: 30 days) - Vendor payment timing
  • Cash Runway (target: 6+ months) - Months of operating expenses in bank
  • Fabric Cost Ratio (target: \<28%) - Fabric cost as % of revenue
  • Labor Cost Ratio (target: \<35%) - Direct labor as % of revenue
  • Budget Variance (target: \<10%) - Actual vs. planned spending
  • Invoice Processing Time (target: \<3 days) - Speed from receipt to payment

Team Structure​

  • Finance Director (A) - Overall financial strategy, reporting to CEO, investor relations
  • Senior Accountant (R) - Day-to-day accounting, monthly close, financial statements
  • AP Specialist (R) - Vendor payments, invoice processing, supplier relations
  • AR Specialist (R) - Client billing, collections, payment tracking
  • Cost Analyst (S) - Production cost tracking, margin analysis, budget support
  • Finance Coordinator (S) - Administrative support, data entry, file management

The Finance Director is Accountable for all financial decisions and reports. The accounting team is Responsible for executing processes. The Cost Analyst provides Support by maintaining cost models and dashboards that inform pricing and production decisions.

For major financial decisions (capital investments, credit lines, pricing strategy), the Finance Director Consults with CEO and relevant department heads (Production, Sales, Design) before finalizing recommendations.

See Responsibilities for detailed RABSIC matrix.