How it runs for auto repair shops and dealerships
A LedgerBPO accountant matches each receipt and payment to its repair order, deal or invoice, posts fees separately, reconciles every bank, card and lender account monthly and logs exceptions in ReconBot with an owner and a resolution date.
What is a bank reconciliation service?
A bank reconciliation service compares the transactions in your accounting software with the transactions on your bank and credit-card statements and explains every difference. The goal is a ledger balance that agrees with the statement after timing items such as outstanding checks and deposits in transit. Done monthly, it catches missing entries, duplicates, bank errors and fraud early.
What we handle for auto repair shops and dealerships
- Card batches matched to closed repair orders with fees and surcharges posted separately
- Insurance, warranty and fleet payments matched to the claims and invoices they settle
- Lender fundings matched to contracts in transit per deal
- Floor-plan draws, payoffs, interest and curtailments reconciled to the lender statement
- Title, registration and sales-tax payments to the state matched to deal liabilities
The KPI that matters here
All bank, merchant and floor-plan accounts reconciled with no item open past 30 days.
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
Bank reconciliation in other industries
Frequently asked questions
Why does my floor-plan balance never match the lender?
Usually because payoffs and curtailments are posted on the day the check is cut rather than the day the lender applies them, interest is posted monthly while the lender accrues daily, and a sold unit's payoff is missed entirely. We reconcile per unit to the lender statement every month, so the ledger balance and the lender's balance agree and any sold-out-of-trust unit is flagged immediately.
How do you reconcile card surcharges and processing fees?
The gross ticket is recorded as sales, the surcharge as its own income line where you charge one, and the processor's fee as an expense, so the deposit reconciles to the batch and you can see whether the surcharge covers the cost. Card-network rules cap surcharges at 3% and some states restrict them; you set the policy with your advisor and we record it.
Can you reconcile a cash drawer for a repair shop?
Yes, the daily cash total on closed repair orders is compared to the deposit that reaches the bank, and any difference is posted to cash over-and-short by day. Patterns are reported so the owner can look at the counter process. Deposits over $10,000 in cash from one customer are listed for the Form 8300 review described on the controller services page for auto repair shops & dealerships.
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