Bookkeeping for Mechanics and Auto
Bookkeeping for Auto Repair Shops
Parts inventory. Labor versus parts. Warranty work. Shop software handled.
- AIPB Certified
- QuickBooks ProAdvisor
- Xero Partner
- US-based team
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Walk into most auto repair shops and the parts room tells you everything. Shelves of brake pads, filters, sensors, belts, half of it bought last month and half of it sitting since the last owner ran the place. Nobody's counted it properly in a year. Meanwhile the invoices going out the door are mixing labor and parts on one line, which works fine until tax season asks you to split them apart and nobody remembers how.
Shop management software handles the day-to-day fine, the repair orders, the customer history, the scheduling. Where it usually breaks down is the connection between that system and your actual books. Parts pulled for a job should reduce inventory and hit cost of goods. Warranty work needs its own tracking because the manufacturer or extended warranty company pays you weeks after the job's done, not at the counter. None of that happens automatically just because you've got good shop software.
We run books for independent shops and small chains who need someone that gets the difference between labor revenue and parts revenue, who knows warranty receivables need chasing separately from a walk-in customer's card payment, and who can keep your inventory numbers honest instead of guessed at once a year. QuickBooks or Xero, connected to your shop management system, kept current so tax time isn't a surprise.
Where mechanics and auto bookkeeping actually helps
- I have no real idea what's actually sitting in my parts room versus what the system saysParts inventory reconciled against your shop management system regularly, so the number on the books matches what is actually on the shelf.
- Labor and parts are lumped together on invoices and I can't see my real margin on eitherLabor and parts revenue tracked as separate lines, so you can see where your actual margin lives and price jobs with real numbers instead of a gut feel.
- I do warranty work and I'm never sure what's been paid and what's still owed to meWarranty receivables tracked separately from retail sales, followed through until the manufacturer or warranty company actually pays.
- I bought a new lift and some diagnostic equipment and I don't know how to write it offEquipment and tools depreciated correctly, with Section 179 expensing applied where it fits, so the deduction is real and your CPA has clean numbers.
- My state charges sales tax differently on labor versus parts and I'm not sure I'm doing it rightLabor and parts sales tax tracked and applied according to your state's rules, so you're not over-collecting or under-collecting on every invoice.
What's different about mechanics and auto bookkeeping
- Parts inventory management reconciled against shop management software
- Labor versus parts sales tax split, tracked according to your state's rules
- Warranty work tracked as its own receivable category, followed through to payment
- Shop management software connected cleanly to your books
- Tools and equipment depreciation, including diagnostic and lift equipment
- Books kept tax-ready year-round for your quarterly and annual filings
Where shop books usually come apart
Most shop books we take over have parts inventory that's been drifting for a while. It's not anyone's fault exactly. Parts get pulled for a job, sometimes logged in the shop system, sometimes not if it was a quick fix between appointments. Multiply that by a year and the inventory number on the books stops meaning anything. It happens slowly enough that nobody notices until a lender or a buyer asks for real numbers and the shop can't produce them.
Warranty work has its own version of the same problem. The job gets done, the invoice gets marked warranty, and then it sits. The manufacturer or the extended warranty administrator pays on their own schedule, sometimes fast, sometimes not, and if nobody's tracking it as a separate receivable, that money quietly stops getting chased. We hold warranty work as its own category from the day the job closes, so it gets followed through instead of forgotten.
The fix for both isn't complicated, it's just consistent. Parts inventory reconciled on a regular schedule against what the shop system says was used. Warranty invoices tracked until payment actually lands. Labor and parts kept on separate lines so the margin on each is visible instead of blended into one number that hides which side of the shop is actually making money.
What's included
- Bank and credit card reconciliation, monthly
- Parts inventory reconciliation against shop management software
- Labor and parts revenue tracked on separate lines
- Warranty receivables tracked separately through to payment
- Sales tax applied correctly to labor and parts per your state's rules
- Tools and equipment depreciation, Section 179 applied where eligible
- Payroll for shop staff and technicians, if applicable
- Monthly profit and loss with plain-English summary
Why auto repair shops pick us
We know shop operations
Parts, labor, warranty claims, diagnostic equipment. We run auto repair books regularly and the day-to-day of a shop isn't a mystery to us.
Parts inventory kept honest
Reconciled against your shop management system on a regular schedule, so the number on the books actually reflects what is on the shelf.
Labor vs parts, split correctly
Revenue and sales tax tracked separately for labor and parts, according to your state's rules, so your margin and your tax collection are both accurate.
Shop software, connected
Whatever system runs your repair orders, we connect it cleanly to your books so the two aren't fighting each other or duplicating work.
Warranty work, chased down
Tracked as its own receivable category from the day the job closes. Manufacturer and warranty company payments followed through, not forgotten.
Equipment write-offs, done right
Lifts, diagnostic gear, and tools depreciated correctly, Section 179 applied where it fits, so your equipment spending actually helps at tax time.
Get parts, labor, and warranty tracked properly
Tell us your shop size and how you handle warranty work. Written quote back the same business day.
Three shop shapes
Owner-operator running one or two bays
Independent mechanic running a small shop solo or with one technician. Mostly retail customer work, some parts markup, light warranty volume. Owner doing books on a Sunday and falling behind.
What changes
- Parts inventory reconciled monthly
- Labor and parts revenue split cleanly
- Quarterly tax readiness maintained
- Sundays back from bookkeeping catch-up
How shops typically handle their books
Owner-managed Common for single-bay shops | General bookkeeper Not shop-specific | Outsourced (us) Built for shops | |
|---|---|---|---|
Parts inventory reconciled regularly | No | Partial | Yes |
Labor and parts tracked separately | Partial | Partial | Yes |
Warranty receivables tracked to payment | No | No | Yes |
Sales tax split correctly by state rules | Partial | Partial | Yes |
Reviewed by an AIPB-certified bookkeeper | No | No | Yes |
Equipment depreciation handled properly | No | Partial | Yes |
How we price mechanics and auto bookkeeping
Auto shop bookkeeping pricing depends on transaction volume, parts inventory complexity, how much warranty work you carry, and technician headcount. A single-bay owner-operator shop is a lighter lift than a multi-bay operation running steady manufacturer warranty volume with technicians on payroll.
Fill out the quote form and tell us roughly your shop size and work mix. We will send back a written number, usually within a business day. Pricing scales with your shop, not a flat tier you have to squeeze into.
Mechanics and Auto bookkeeping FAQ
Two things to remember
Every account is reconciled and kept tax-ready by an AIPB-certified bookkeeper. Every account is run inside the US. Those two anchors shape how we handle compliance for auto repair shops specifically.
Service the books.
Tell us your shop size and work mix. We will quote your retainer the same day.