Automotive
Reconciling parts statements, tracking core returns, and separating labor from materials. Real inventory tracking so you know your true margins.
The Industry
Running a shop is a logistics-heavy operation. You are managing a constant flow of parts from suppliers, tracking core charges that need to go back, and balancing labor rates against your overhead.
The complexity lies in the paperwork. A single repair order contains taxable parts, non-taxable labor, and environmental fees. If your books don’t capture that level of detail, you cannot tell if you are making money on the job or just churning cash.
Who This Covers
Who This Covers
General repair shops, collision centers, tire dealers, and used car lots. We work with any business where profitability depends on the markup between parts cost and labor efficiency.
The Friction
The Friction
Vendor statements often have hundreds of line items that need to be verified. Core returns require tracking to ensure you actually get the credit. Missouri sales tax rules regarding parts versus labor can be confusing and costly if done wrong.
What We Handle
We move you away from “shoe box” accounting. We reconcile your vendor statements against actual purchases to ensure every part you pay for was received. When a core is returned, we verify that the credit hits your account or reduces your bill.
We also handle the nuance of Missouri sales tax. The distinction between parts and labor changes your liability. We set up your revenue mapping to ensure you are collecting and remitting the correct amount, keeping the state happy without overpaying.
Inventory Logic
Inventory Logic
Parts must be tracked accurately. Expensing everything the day you buy it distorts your numbers. We match the cost of the part to the month the job was finished, which smooths out your P&L and shows true performance.
Core Management
Core Management
Core charges are essentially an interest-free loan you give to your supplier. We track these specifically. If a core isn’t returned or credited, you lose margin. We make sure that doesn’t happen.
Common Problems
Many owners fall into the “cash basis” trap. A high bank balance on Friday looks great until the $15,000 parts bill drafts on Monday. It looks like profit, but it is actually just a timing difference.
Commingling is another frequent issue. When technicians buy personal tools on the company account, or owners use the business card for personal expenses, it muddies the water. This makes the shop look less profitable than it really is and creates headaches at tax time.
The Margin Illusion
The Margin Illusion
You need to separate labor revenue from parts revenue to track your metrics. This allows you to see if your parts markup is hitting the target and if your labor efficiency is covering the shop overhead.
Sales Tax Errors
Sales Tax Errors
Charging tax on the whole invoice instead of just the material is a common mistake. Missing tax on shop supplies is another. These small errors add up to thousands of dollars in liability over time.
What Changes
You stop guessing at your profitability. Monthly reports clearly split the Gross Margin on parts from the margin on labor. You can identify if a specific technician is costing you money or if a supplier is creeping up their prices.
Vendor bills get paid on schedule, and tax filings are backed by accurate data. You get to run the shop based on hard numbers rather than just grit.
True Job Costing
True Job Costing
You will see the actual profitability of the work. Oil changes might be loss leaders while suspension work carries the business. This data allows you to adjust your marketing and pricing strategy.
Cash Clarity
Cash Clarity
We reconcile credit card deposits and cash drawers daily. You know exactly what hit the bank. This lets you plan for equipment upgrades because you know what the shop can actually afford.
Full-Charge Bookkeeping for Mid-Mo's Businesses
The Next Step:
Get Your Quote
Tell us what you're dealing with. We'll listen, ask a few questions, and give you a straightforward price that meets your expectations.
