At any given point in time economic circumstances will impact business profitability. At the time there are several significant factors that present challenges to the automotive repair industry. Government policy, inflationary pressures and the United Auto Workers Union Strike together create a difficult environment for auto repair shops:
This writing is not intended to be political. It’s meant to be a recognition of the cause-and-effect relationship between government policy and the environment we live in. In reality when government policy positively impacts a segment of the economy – it often negatively impacts others. At the time of this writing there are several major …
Government Policy and its Impact on the Automotive Repair Industry Read More »
The impact of inflation on our lives at this time is readily apparent. Any time we fill our cars up with gas or go to the grocery store we directly feel the effects. The US Bureau of Labor Statistics reports the Consumer Price Index (CPI) for each month. This is the average percentage of price …
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At the time of this writing the United Auto Workers Union is on strike. The strike has entered its second week and has expanded from three locations affecting about 13,000 employees to 38 locations affecting an estimated 18,000 workers. The strike has expanded beyond vehicle production facilities to parts production facilities. In addition, some parts …
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A well configured accounting system is essential to success in any business and automotive repair is no exception. A business owner doesn’t need to understand the details and nuances of accounting but a basic understanding can help to understand how to take advantage of what an accounting system can provide. The double entry system, balance …
The chart of accounts is the heart of accounting for any business including automotive repair. A familiar saying is that “Accounting is the Language of Business”. A General Accounting System contains summarized business activity organized in such a way that the state of the business can be analyzed readily. A basic understanding of the components …
Automotive Repair Shop General Accounting Chart of Accounts Read More »
Accounting Subledgers and Operational Management Systems feed General Accounting Systems. A subledger contains the detail of a certain area of business activity while the general accounting system reflects a summary value of the business activity. Following are the primary business subledgers and operational systems:
Financial Statements are the primary output from an accounting system. The balance sheet and profit and loss statement provide a picture of the status of a company at a given point in time. Decisions can be made on what management focus should be going forward in order to achieve success. The primary statements are:
The integration of automotive repair operation processes can have a significant impact on quality service delivery. The service advisor and interaction with the customer along with the technician and parts management processes are the key to a seamless auto repair operations. Auto Repair Shop Software should automatically provide visibility of the point in the repair …
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The service advisor engages in the direct dealings with the customer. From the time that the engagement takes place – the service advisor must ensure that the repair opportunity is managed to make the best use of the technician’s time. Doing things in the proper order and being able to recognize what needs to be …
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