Doing your books is a crucial—but frequently stressful—part of running an automotive repair business, between fixing cars, ordering tools and parts, and offering excellent customer service. When you use Remote Books Online, we’ll take care of your books so you can focus on what you do best and enjoy most: fixing up vehicles and getting your clients back on the road.
Any size company, from a single garage to a network of auto shops, can rely on Remote Books Online to keep their books up to date and make sure they are receiving all tax credits and deductions to which they are entitled.
When you have access to your profit and loss (P&L) and financial statements, such as accounts receivable (AR) and accounts payable, you can make business choices more effectively as the owner of an auto repair shop. (AP). When you need this information, our certified QuickBooks Pro advisors will make sure you have it at your fingertips and are kept up to speed in real time.
Setting up internal controls and processes in the car repair industry is a never-ending challenge due to a large number of moving components. As the proprietor of an independent car repair shop or a franchise, you must find ways to increase revenue, reduce operating costs, ensure sustainability, and get around compliance obstacles.
For more than a decade, we have offered the auto care business unmatched accounting and bookkeeping services. We are a dependable collaborator for hundreds of auto care facilities, and their businesses profit from our in-depth industry knowledge and insights. We can set up a cost-effective and tested accounting method that will help you capture important shop performance metrics, control costs, and increase profitability because we are technology agnostic.
Even though bookkeeping is tedious and takes time away from more important tasks, it offers financial data that is vital to your success. You’ll be able to concentrate on what matters most when you let us manage it.
Benefits of our services
- Obtain the required expertise, information, technology, and area of specialization.
- Releasing crucial resources will allow them to focus on routine work and invention.
- By employing a team of professionals, accounting inefficiency is eliminated and compliance is guaranteed.
- knowledgeable personnel with the experience to understand the core of your business.
- To save time and money, scale the squad to the needs.
- Accounting services that go beyond just maintaining financial records and tracking expenses.
Learn How to Organize Your Funds for Your Auto Shop
1. Examine Prior Income:
Looking backward is one of the best methods to make future plans. Reviewing your business’s revenue from prior years is the first stage in creating a financial plan. You can do this by retrieving all of your receipts and totaling your sales from there. (We advise you to divide them into figures for the yearly, quarterly, and monthly periods.) Now is a good moment to start organizing this information if you don’t already have it.
You can determine how much revenue you’ve made each month, quarter, and year by pulling your invoices and reviewing them. This can assist you in tracking trends or seasonality and observing how your company’s income changes over time. The income figures from the past can also be used to forecast the revenue you will generate in the future.
2. Maintain a Spending Log:
Knowing where your company spends money and keeping track of your expenditures are important components of managing your finances. Everything you’ve spent on your company counts as an expense.
Your expenditures will be tracked and categorized by QuickBooks. In this manner, you can track every dollar’s usage and identify areas where you might want to make savings. Your receipts will be used by QuickBooks to help you monitor your expenses so you can control your spending. You can prepare by being aware of your purchasing habits.
3. Profits in the Past:
You’ll want to compute your profits once you know what you’ve brought in (revenue) and how much you’ve spent (expenses). Subtract your total expenditures from your total revenue to arrive at this figure. The aim is to have a positive profit figure. You want to generate more revenue than you expend in expenses.
QuickBooks provides you with a plethora of helpful reports to make your life easier. These include a profit and loss account, a balance sheet report, and a cash flow statement. The profit and loss statement summarizes your income minus any expenses to demonstrate how profitable your company is over a specific time frame.
4. Make a plan:
You’ll know exactly where your auto repair or detailing company stands with the help of all this information. You can now begin making money projections and planning. A forecast is a projection of the future based on historical evidence. You can now predict your profits, revenue, and expenditures for the remainder of the year using the information you currently have.
Planning for a few various scenarios will help you be ready for both the best and worst-case scenarios, should they arise. Consider creating speed triggers as well. A performance trigger is a company measure that reveals the state of your company.
5. Get ready for taxes:
When tax season rolls around, it’s time to reconsider your approach if you find yourself slogging through a mountain of papers. The last thing you want to happen is to be unable to claim tax benefits due to a lack of receipts.
You can attach receipts to banking transactions as you go if you can take a picture of your receipts and upload them to QuickBooks. At the conclusion of the financial year, they are now all organized and stored. Any expenses related to operating your business, such as cleaning supplies, staff uniforms, company cell phones, fuel costs, travel expenses, and employee wages, are deductible for a car repair, recon, and detailing business. QuickBooks allows you to automatically split your expenses into the appropriate tax categories, allowing you to retain more of what you make. You can also simply download and share the documents with your accountant if necessary so that they can prepare your tax return when the time comes.
6. Get Assistance When You Need It:
It is always preferable to seek assistance rather than struggle and possibly make mistakes. Those who require additional assistance with their accounts can pay a small fee to have a QuickBooks expert handle their bookkeeping for them. You will be matched with an accounting specialist who knows your company and can do your accounting for a monthly fee.
Best Procedures to Follow When Keeping Books for Car Repair Shops
1. Monitor inventory
To ensure that you never run out of what you need, inventory needs to be meticulously monitored to keep an eye on overall costs and reorder points. This may also assist in identifying purchases that you can securely place in bulk for greater financial savings. In addition to parts, you might also offer tires or windshield wipers that should be tracked.
Many repair shops opt to maintain a modest inventory of items with protracted lead times. It is crucial to correctly track your inventory because these items are frequently challenging to find and sometimes quite expensive.
2. Establish a System for Core Return Parts:
Every auto shop repair should have a reliable system in place for handling part-core returns because doing so swiftly can open a new source of income for your company. Considering this, effective accounting is essential to developing a successful part core return system. It enables you to keep track of where each one is in the process, and based on those figures, you can forecast this extra income.
The following are some recommended practices for part core returns:
- Pricing for both inherently dirty and clean centers
- No credits are given until the body of the part is returned and evaluated.
- Establishing a central place for the storage of used part cores
- Send them back right away to lessen the possibility of worth loss.
- Avoid buying components from parts that have already been sold back.
3. Examine Your Part Margin:
Part margin considers both the part’s cost and the amount it was sold for. Knowing your part margin is a crucial component of car repair shop bookkeeping because it enables owners and managers to boost sales without undercharging customers.
Subtract your optimal markup from 100% to determine part margin. For instance, 0.75 would be the result of subtracting a 25% profit from 100%. You can calculate your component margin by dividing the cost of the part by this number.
It’s essential to continuously assess your profit margin as the market shifts. It will not only give you a clear idea of what you must offer in order to achieve your objectives, but it will also enable you to assess whether your pricing (and margin) is competitive.
Features of our services:
- For a clear picture of your company’s financial situation and to prepare your books for taxes, loans, or other transactions, we can assist you quickly and easily.
- Our convenient, online bookkeeping services are offered by Xero-Certified Advisors and Certified QuickBooks ProAdvisors for very little money per month.
- We offer automated and secure encrypted monthly bank statement downloads and accounting software.
- With back bookkeeping, real-time bookkeeping, payroll, and full- or part-time bookkeepers, we can take care of your needs, allowing you to resume doing what you do best.
- To demonstrate how we relieve your bookkeeping stress and frustration, we will reconcile one month’s worth of your books at no cost to you.
Accounting for specialized auto repair shops:
One of your top priorities as a small business owner should be maintaining tabs on your finances. Finances, however, can occasionally feel like a burden because you also have a long list of duties and commitments to keep your company running. QuickBooks accounting software is a fantastic tool for those who aren’t certified public accountants but still want to manage their money effectively and professionally. This guide will teach you how to use QuickBooks for an auto repair, auto reconditioning, and auto detailing businesses and how to manage your money.
You have two choices when it comes to your accounting and money. You have the option of doing it yourself or hiring someone to do it for you. Even if you’re not an accountant, QuickBooks is designed to be user- and beginner-friendly, making it straightforward to navigate. Many small business owners who run auto repair, auto reconditioning, and auto detailing businesses decide to handle it themselves thanks to QuickBooks.
To increase your profitability and reduce your tax liability, hire experts with expertise in the tire center, body shop, and repair shop industries rather than giving up your time. Use an accountant to calculate the replacement components matrix pricing, payroll margins, and payment methods as well as to record insurance short pays from warranty work.
1. Why should auto repair businesses outsource their payroll?
Your business has distinct options for compensating your employees. Aside from the payroll aspects that an accountant can assist with, such as determining the best payroll margins and payment methods to complement your matrix pricing strategy, a good, trustworthy payroll service provider will do the following in an accurate and timely manner:
- Pay your workers.
- You must pay your payroll fees.
- Prepare your W-2 forms.
- Handle all weekly, monthly, quarterly, and annual state and federal government regulations.
2. Why should auto repair businesses outsource their monthly accounting?
You most likely already outsource your accounting – to a yearly tax accountant, that is. Outsourcing monthly accounting involves not only bookkeeping and tax filing, but also:
- Year-round tax planning to reduce your tax liability.
- Monthly financial records to help you plan.
- Reconciliation of financial accounts and credit cards monthly.
- Meetings with your accountant monthly to receive personalized guidance.
- Contact with your bookkeeper is unlimited and free of charge.
- Sales tax returns must be filed on schedule and correctly.
3. How to maintain accuracy in your car repair shop’s finances.
You need to improve your bookkeeping and accounting in your auto repair business by taking several steps. In addition to many other things, you should maintain track of your small business’s inventory and calculate labour costs. To maintain your finances accurate, it is crucial to be knowledgeable about various bookkeeping and accounting tips and tricks.
4. What software do I need to run a business doing auto repairs?
To track repair expenses and input labour hours, an auto repair business owner needs the proper software. To determine which projects are successful, confirm the parts used in repairs, and account for all billing hours for a full service, you can use accounting software for car repair shops.