How it runs for auto repair shops and dealerships
A LedgerBPO team runs the close on a CloseTrack checklist: cut off repair orders at the last closed ticket, value work in progress on open tickets, accrue sublet and parts invoices, adjust warranty receivables to approved amounts, reconcile floor plan and contracts in transit, post technician pay accruals, and release after a second accountant's review.
What is month-end close outsourcing?
Month-end close outsourcing means an external accounting team performs the steps that turn a month of transactions into finished financial statements: reconciling every account, posting accruals, prepaids and depreciation, checking cut-off, reviewing and locking the period. You keep your software and your accountant. The provider runs the checklist on an agreed calendar and hands you reviewed statements.
What we handle for auto repair shops and dealerships
- Repair orders cut off at the last closed ticket with open tickets valued as work in progress
- Sublet, parts and tire invoices accrued when the vendor bills late
- Warranty and insurance receivables adjusted to approved amounts
- Floor-plan interest accrued daily to month-end and contracts in transit reviewed
- Parts inventory reconciled to the ledger with count adjustments booked
The KPI that matters here
Close completed and statements released by business day 5 with floor plan and parts reconciled.
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
Month-end close in other industries
Frequently asked questions
What is different about an auto shop's month-end close?
Open repair orders. Parts installed and technician hours worked on tickets not yet closed sit in work in progress, sublet invoices arrive after the ticket closes and must be accrued, and warranty claims change value when the payer responds. For dealerships add floor-plan interest, contracts in transit and per-deal tax and title liabilities. The rest of the checklist is standard.
How do you value open repair orders at month-end?
Parts already issued to the ticket at cost plus technician hours recorded at your labor cost rate are held in work in progress on the balance sheet until the ticket closes. This stops a busy last week of the month from showing parts cost without the matching labor and parts sales. Your shop system's open-ticket report is the source.
Can you close the parts inventory monthly without a full count?
Yes, we reconcile the shop system's parts inventory value to the ledger monthly, book known adjustments such as returns, cores and obsolescence write-downs, and use cycle counts of high-value bins when the parts manager supplies them. A full count reconciles the year. The monthly financial reporting service for auto repair shops & dealerships shows the resulting parts margin.
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