How it runs for auto repair shops and dealerships
A LedgerBPO setup specialist builds or migrates the QuickBooks Online or QuickBooks Desktop file, configures the shop-system or DMS integration, connects merchant, bank and lender feeds, Dext or Bill.com for supplier bills and Gusto or ADP for payroll, then runs a parallel month before switching.
What is accounting software setup and migration?
Accounting software setup is the configuration of a new ledger: chart of accounts, tax codes, bank feeds, items, users and apps. Migration is moving existing books from another platform or spreadsheet into that ledger so history, open items and balances carry across. Both end with a file that agrees to the old records and is ready for live posting.
What we handle for auto repair shops and dealerships
- Chart of accounts by department: labor, parts, sublet, supplies, sales, F&I and body shop
- Shop-system or DMS integration configured to post closed tickets and deals by category
- Clearing accounts for each processor, contracts in transit and floor-plan lender
- Parts inventory, core receivable and warranty receivable accounts set up
- Opening balances migrated, floor plan reconciled to the lender and one parallel month run
The KPI that matters here
Setup complete and the first parallel month closed within 30 days of access.
Auto compliance notes
State dealer rules and title work
Licensed dealers must remit sales tax on vehicle sales, submit title and registration applications within the state's deadline, often 30 days, and in some states charge no more than a capped documentation fee. We track sales tax, title fees and registration fees collected as liabilities per deal, reconcile them to what the DMV or tag agency was paid, and list any deal where the paperwork or the payment is late. Your compliance officer or attorney interprets the rules; we keep the schedule.
Floor-plan financing
Floor-plan lenders charge interest daily per unit, require curtailment payments as units age and reconcile their records to the lot at audit. We post interest and curtailments per unit, reconcile the lender's statement to the ledger every month, and flag any sold unit whose payoff has not cleared inside the contract window so a sold-out-of-trust position never goes unnoticed.
Parts inventory and core charges
Parts inventory must be counted, valued consistently and reconciled to the ledger, with obsolete stock written down under your CPA's policy. Core charges paid to suppliers are receivables until the core is returned, and supplier returns are receivables until credited. We track both by supplier so the balance sheet reflects what will actually come back.
Cash reporting and consumer financing
Dealerships must file IRS Form 8300 for cash over $10,000 and keep records supporting each finance contract. We list every 8300-reportable transaction from the deal file for your compliance officer to file, and we reconcile finance reserves and chargebacks from lenders to the contracts they relate to. We do not file the forms or give legal advice.
Auto software we work in
- QuickBooks Online
- QuickBooks Desktop
- Square
- Gusto
- Tekmetric
- Shop-Ware
- Mitchell 1
- Shopmonkey
- Dealertrack DMS
- CDK
- All 50 platforms
More for auto repair shops and dealerships
Other services for auto
Software setup and migration in other industries
Frequently asked questions
Should an auto shop use QuickBooks Online or QuickBooks Desktop?
QuickBooks Online suits most independent shops, integrates with Tekmetric, Shop-Ware and Shopmonkey and lets your accountant work remotely. QuickBooks Desktop or a DMS-integrated ledger is still common at franchised dealerships whose DMS posts directly to it. We set up either; the shop system, the DMS and your CPA's preference decide it.
How do you map a shop-management system to the ledger?
Each category in the shop system, such as labor, parts, sublet, shop supplies, hazmat fees, discounts and tax, is mapped to its own revenue or liability account, and each payment type to its clearing account. Closed tickets then post daily as summaries that reconcile to the shop system's sales report and to each processor batch. Item-level detail stays in the shop system.
Can you migrate a dealership from an old DMS ledger?
Yes, we export the trial balance, open receivables, floor-plan balances per unit, parts inventory and open deals, load them into the new file and reconcile each to the lender, the supplier statements and the DMS before go-live. The old system remains available for reference. Ongoing daily posting then continues under the outsourced bookkeeping service for auto repair shops & dealerships.
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