Automotive Services
Auto repair shops tracking parts and labor per ticket. Used car dealers managing floor plan costs and reconditioning expenses on every vehicle.
The Industry
Auto repair shops deal with parts inventory that moves constantly. You buy a case of oil filters, use three on Monday, two on Wednesday, and by the end of the month you’re not sure what’s left on the shelf versus what’s in the books. Labor gets complicated when you have mechanics on flat rate, hourly, or some hybrid arrangement. A brake job that books at 1.5 hours but takes your tech 45 minutes looks profitable until you add up the pads, rotors, hardware, and shop supplies nobody bothered to track. Vendor accounts at parts stores accumulate charges that don’t match the invoices on individual repair orders.
Used car dealers operate with borrowed money. Floor plan financing means you’re paying interest on every vehicle sitting on the lot. That $8,000 car you bought at auction has transport costs, reconditioning expenses, detail fees, and carrying costs that add up week after week. By the time it sells, the true cost might be $9,400 and nobody calculated that before setting the asking price. Sales tax collection and remittance adds another layer. Trade-ins create accounting entries that need to offset correctly. The books get messy fast when each vehicle is its own profit center with different acquisition costs and timelines.
Who This Covers
Who This Covers
Independent auto repair shops, transmission specialists, tire shops, body shops, oil change facilities, and used car dealerships. Any automotive business in Northwest Arkansas where inventory and labor drive profitability.
What Complicates It
What Complicates It
Parts inventory that needs tracking at the job level. Mechanics paid flat rate versus hourly versus commission. Vendor accounts at multiple parts suppliers. Core charges on rebuilt parts. Warranty work billed to manufacturers at different rates. Floor plan interest on dealer inventory. Reconditioning costs that vary by vehicle. Sales tax on vehicle sales. Trade-in accounting that needs to net correctly.
What We Handle
Repair shops need job costing that tracks parts and labor per repair order. We set up QuickBooks to show what each job actually cost, not just what you charged for it. Parts inventory gets reconciled so you know what’s on the shelf and can spot shrinkage before it gets out of hand. Payroll handles flat rate calculations, hourly wages, and any bonuses or spiffs your mechanics earn. Accounts payable manages the parts house statements so you know what’s owed and when it’s due. Fleet accounts and commercial customers paying on terms need receivables tracking with follow-up before balances age out.
Dealers need vehicle-level cost tracking from acquisition through sale. We record what you paid at auction, transport fees, reconditioning expenses, and floor plan interest so you see true cost on every unit. Sales tax gets calculated and tracked for remittance. Trade-ins recorded properly so the deal sheets balance. Monthly books show which vehicles sold at a profit and which ones sat too long and ate the margin. Tax preparation captures depreciation on shop equipment and service vehicles, along with the inventory and cost of goods sold entries that automotive businesses require.
Job Costing and Inventory for Repair Shops
Job Costing and Inventory for Repair Shops
Parts and labor tracked per repair order showing true job profitability. Inventory reconciliation catching shrinkage and ordering issues. Payroll for mechanics with flat rate or hourly pay structures. Vendor account management for parts suppliers. Accounts receivable for fleet customers and warranty reimbursements. QuickBooks configured for automotive repair operations.
Vehicle Tracking and Compliance for Dealers
Vehicle Tracking and Compliance for Dealers
Acquisition cost tracking including auction fees and transport. Reconditioning expenses recorded to individual vehicles. Floor plan interest allocated so carrying costs are visible. Sales tax calculation and remittance. Trade-in accounting that balances correctly. Monthly reporting showing per-vehicle profitability and lot aging.
What Goes Wrong
Repair shops lose money in ways that are hard to see. Parts walk out the door or get used on jobs without being charged. A mechanic grabs a quart of oil from the back and nobody writes it down. Over a month that’s $50 in missing inventory. Over a year it’s real money. Labor hours get estimated instead of tracked. You think the transmission rebuild made $800 but the tech was on the clock for 12 hours and parts cost more than the estimate. Comebacks and rework don’t get tracked either. That free fix to make a customer happy cost you parts and labor that just disappeared into overhead.
Dealers get hurt by invisible carrying costs. A car sits on the lot for 90 days and the floor plan interest alone adds $400 to the cost. But the asking price never changed because nobody updated the true cost. Reconditioning gets lumped into one expense category instead of assigned to vehicles. You think the Camry made $1,200 when it actually lost money after accounting for the new tires and brake work. Trade-in values get recorded wrong and the whole deal is off from the start. Sales tax errors create liability that shows up months later when the state sends a notice.
Parts and Labor Visibility Problems
Parts and Labor Visibility Problems
Inventory shrinkage undetected because physical counts don’t happen. Parts used on jobs not charged to customers. Labor hours estimated instead of tracked making profitability guesswork. Shop supplies expensed in bulk instead of allocated to jobs. Warranty reimbursements that don’t cover actual costs going unnoticed. Comebacks absorbed as overhead instead of tracked as costs.
Vehicle Cost Tracking Failures
Vehicle Cost Tracking Failures
Reconditioning lumped into general expenses instead of assigned per vehicle. Floor plan interest ignored when calculating margins. Vehicles sitting too long with carrying costs nobody calculated. Trade-ins recorded incorrectly throwing off deal profitability. Sales tax calculated wrong creating future liability. No visibility into which vehicles actually make money versus which ones just moved.
What Changes
Every repair order shows true profitability after parts, labor, and supplies. You can see which jobs make money and which ones need higher labor rates or better parts pricing. Inventory counts match the books and shrinkage gets spotted early. Mechanics paid correctly whether they’re flat rate or hourly. Fleet accounts get invoiced and followed up on before balances age past 60 days. You stop guessing about job profitability and start pricing based on actual cost data from your own shop.
Dealers see complete vehicle costs from auction to sale. Floor plan interest gets allocated so you know the real break-even on every unit. Reconditioning tracked per vehicle so pricing reflects true investment. Lot aging reports show which cars are costing you money every week they sit. Sales tax handled correctly with proper remittance. Monthly financials show actual profitability by vehicle and overall trends. When you need financing for expansion or equipment, the books are clean and ready. Tax returns prepared by someone who understands automotive inventory and depreciation rules.
Profitable Decisions Based on Real Numbers
Profitable Decisions Based on Real Numbers
Job-level profitability for repair shops showing which services make money. Vehicle-level cost tracking for dealers showing true margins. Parts pricing and labor rates adjusted based on actual data. Slow-moving inventory flagged before carrying costs eat the profit. Vendor relationships managed with accurate payables. Pricing decisions backed by real cost information from your own operations.
Growth-Ready Financials
Growth-Ready Financials
Clean books that support loan applications for equipment or expansion. Inventory properly valued and reconciled. Payroll handled correctly for various pay structures. Sales tax compliant and filed on time. Monthly statements showing real performance trends. Tax preparation capturing equipment depreciation, inventory adjustments, and cost of goods sold properly. Financial foundation built for growth when you’re ready.
Northwest Arkansas's Dedicated Bookkeeping Partner
The Next Step:
A Quick Conversation
Tell us about your business and where you need help. We'll listen, ask a few questions, and give you a clear plan and honest price.
