How it runs for auto repair shops and dealerships
A named LedgerBPO accountant posts each day's closed tickets from Tekmetric, Shop-Ware, Mitchell 1 or your DMS into QuickBooks Online or QuickBooks Desktop by category, matches card batches, cash and lender fundings to deposits, records parts invoices against receipts and reconciles every account monthly with a second accountant reviewing before release.
What is outsourced bookkeeping?
Outsourced bookkeeping means a remote accounting team records, categorizes and reconciles your business transactions instead of an employee doing it in-house. You keep ownership of the accounting file and the bank relationship. The provider works inside your software on a fixed schedule, so the books are ready for reporting, tax and lending whenever you need them.
What we handle for auto repair shops and dealerships
- Closed repair orders posted daily with labor, parts, sublet and supplies on separate lines
- Card batches, cash drops and lender fundings matched to tickets and deals
- Parts invoices matched to receipts, with returns and cores tracked to credit
- Technician pay posted against labor sales for effective-rate reporting
- Sales tax on parts and, where taxable, labor tracked by jurisdiction
The KPI that matters here
Books reconciled and category margins issued within 5 business days of month-end.
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
Frequently asked questions
Why should a repair shop post repair orders instead of just deposits?
Because deposits arrive net of card fees, days after the work, and combine tickets that have very different margins. Posting each closed repair order by category shows labor sales against technician cost, parts sales against parts cost and sublet sales against sublet invoices. Deposits are then matched to tickets during reconciliation, which also catches unpaid and short-paid work.
How do you handle shop supplies, hazmat fees and diagnostic charges?
Each is posted to its own revenue line, because their tax treatment and margin differ from labor and parts. Shop supplies charged as a percentage of labor are matched against the supplies actually purchased, so you can see whether the charge covers the cost. Diagnostic fees waived on approved repairs are recorded as discounts, not lost revenue.
Can you keep books for a shop that also sells a few used vehicles?
Yes, vehicle sales are handled as deals with cost, reconditioning, sale price, trade allowance, taxes and fees posted per unit, separate from the repair-order flow, so both activities show their own margin. Reconditioning work done in your own shop is transferred at cost. The invoicing and billing service for auto repair shops & dealerships covers the customer-facing documents.
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