How it runs for auto repair shops and dealerships
If deposits are posted as sales, labor and parts revenue is understated and fees vanish into the margin. A LedgerBPO accountant runs our ReconBot workflow per processor: import the payout report, match it to the deposit, post fees, surcharges and disputes on their own lines, tie refunds to the original ticket and log exceptions with an owner.
What is payment processor reconciliation?
Payment processor reconciliation is the work of proving that the money a processor or marketplace deposits equals your gross sales less its fees, refunds, chargebacks, reserves and adjustments for the same settlement period. Each payout is broken into its parts and posted so revenue, fees and sales tax are correct and the bank deposit matches to the cent.
What we handle for auto repair shops and dealerships
- Text-to-pay, Stripe and shop-system payment payouts matched to repair orders and deposits
- Counter processor batches from Square or Clover matched by day
- Surcharges recorded as income and reconciled against processor fees
- Refunds and chargebacks tied to the original repair order with the dispute deadline noted
- Clearing accounts per processor netted to zero at month-end
The KPI that matters here
Every processor payout matched to a deposit within 2 business days of arrival.
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
Payment processor reconciliation in other industries
Frequently asked questions
Why reconcile processor payouts if the shop system already shows what was paid?
Because the shop system shows what the customer paid and the bank shows what arrived after fees, refunds, chargebacks and weekend batching, and the ledger has to agree with both. Reconciling gross to net keeps repair-order revenue accurate, shows what card acceptance costs and catches tickets marked paid whose card transaction never settled.
Can you handle surcharges and cash-discount programs?
Yes, a surcharge is recorded as its own income line and reconciled against the processor's fee so you can see whether it covers the cost; a cash-discount program is recorded as the posted price less the discount actually given. Card-network rules cap surcharges at 3% and some states restrict or ban them; you set the policy with your advisor.
How do chargebacks on repair work get handled?
A chargeback is posted as a reversal against the original repair order plus the processor's fee, and listed with the dispute deadline so the service manager can respond with the signed authorization and invoice. Won disputes are reversed back; lost ones are written off with your approval. The bank reconciliation service for auto repair shops & dealerships confirms the net effect.
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