An auto repair shop sells two things on every ticket: parts and labor. Shop-management software captures both, along with shop supplies, environmental fees and sales tax, but the bank sees only card batches, checks and insurance payments. Bookkeeping connects them so parts margin and labor profit are visible.
Parts and labor as separate revenue
We record parts, labor, sublet work and fees as separate revenue lines from your shop-management sales report. That lets you see parts gross margin and effective labor rate each month.
Accounts receivable
Fleet customers, warranty companies and insurers often pay on account. We keep an aging list that ties to the books so you know who owes what and for how long.
Parts inventory and cores
Parts bought for specific jobs, stock parts, returns and core charges all affect cost of goods sold. The IRS explains inventory requirements in Publication 334. We reconcile parts purchases, returns and core credits with your suppliers' statements monthly.
Equipment
Lifts, alignment machines and diagnostic scanners are major purchases; Publication 946 explains depreciation. We keep an asset schedule and loan records.
What our auto repair support covers
- Sales reconciliation by parts, labor and fees
- Customer and insurer receivables aging
- Supplier statement and core credit reconciliation
- Technician payroll records
See our bookkeeping services or book a consultation.
Key terms
Terms that come up often in auto repair shops bookkeeping:
- Accounts Receivable: Accounts receivable is money customers owe your business for goods or services already delivered.
- Debits and Credits: Debits and credits are the two sides of every bookkeeping entry; each account type increases on one side and decreases on the other.
- Cost of Goods Sold: Cost of goods sold is the direct cost of the products a business sold during a period.
- Depreciation: Depreciation spreads the cost of a long-lived business asset over the years it is used, rather than deducting it all at once.
