Bookkeeping is time-consuming and draining. Even with an accountant at hand, auto repair accounting software can bring leaps and bounds for your business.
Keeping track of finances is hard as it is. Whether a small or large auto repair business, you want to be able to create less work for yourself and others. Accounting software helps you do just that. Leaving you time to focus on other parts of your business.
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Still thinking about it? We have put together ten reasons why we think you need to invest in an accounting platform.
What is auto repair accounting software?
Fundamentally, this type of software has been created to track and record the inflow and outflow of money in your business accounts. It helps determine the financial health of your company.
Most offer a variety of features and operate as all-in-one platforms. These capabilities include (but are not limited to):
This functionality is great for auto repair shop management, and even better that you have records in case auditing is required.
1) Fewer labor-intensive tasks
If we learned anything during the pandemic, it’s that a lot of tasks can be done through automation. Why spend so much time and effort manually calculating costs, updating spreadsheets, or using a handwritten ledger?
Setting up your new software will take some time investment at the offset, only to reap rewards for you later. No more painstakingly downloading CSV files from your credit card or bank accounts. Your accounting software will pull all this for you automatically.
It just doesn’t make sense to spend painful hours doing this when there are perfectly good software options to do this for you.
2) Business growth
Not to mention, it will free up time to focus on other parts of your business. You can think about and plan your future growth! As your business expands, be sure that your platform can track and keep up with the profits.
If you are expecting to increase your business size, then investing in accounting software will help you minimize growing pains in the future.
3) Efficient updates
You are no longer required to manually update your spreadsheets cell by cell, row by row. Any change you make will automatically be reflected in the records. If you are looking for specific data sets, the software will easily pull it up for you, rather than you having to create a complicated command in spreadsheets.
These platforms can sync all your financial data as well. What’s more? This software is hosted as a cloud-based platform. Meaning, that if your computer crashes or you are met with some error, you can easily retrieve lost data from the cloud.
You can even see your inventory easily. These inventory details include the number of each product currently available, how many have been sold, and whether you need to restock. No more standing long hours looking over these manually.
4) Financial clarity
When you aren’t exhausted from manual labor and have avoided all human error, you will even be able to see full transparency in your business.
What accounts turned up will all fully be visible to you. You will be able to see how many transactions occur in and out of your business, each day, week, month and year.
Do you have a small business with fewer accounts? Not to worry. Some of the startup accounting software services are designed for smaller companies with fewer transactions taking place.
5) Minimal human errors
Computers run data fast and accurately. With this software, you can rest assured there will be no errors when pulling up data. All major platforms include basic inventory management tools. You can avoid error-prone manual data entry and have full inventory control.
Audits are conducted when significant accounting errors have been identified. If an auditor finds inconsistencies in your information, you will get penalized in the form of significant fines or other punishments.
Manual accounting can increase the chances of these errors and affect your chances of getting audited. Accounting software for auto repair is sure to raise red flags as they arise so you can avoid an audit altogether.
6) Smoother reporting
When it comes to auditing, forecasting or anything else, you will be able to pull out detailed reports for the month, quarter and year. These reports can help you understand your business better by noticing patterns and trends. It will also help you track anything amiss.
As a result, you no longer have to wait around for an administrative assistant to put together a monthly report. Your auto repair accounting software will do the trick.
Platforms usually have in-built reporting systems that are automatically updated. A simple click of a button will download your:
- Income statements
- Cash flow statements
- Balance sheet
- And more
Looking to customize a report? You can easily filter data or add more detail. Additionally, you can save these reports and run them again in the future!
7) Tax support
A detailed account of your finances will reduce your tax burden. It will also help you easily calculate these taxes. The software is bound to maintain compliance based on government requirements.
Your tax accountant can easily track and access your books to fill out the return. They will no longer need to sift through stacks of paperwork. For this reason, they can complete the process faster and, in all likelihood, get you a higher refund.
8) Streamlined auto repair invoices
Wondering how to invoice auto repair? Accounting software can prepare and catalog all your invoices digitally. No more keeping pieces of paper stacked in heavy files or scouring shelves to retrieve them.
All you need to generate invoices in your accounting system are:
Having a template at the ready is all you need. Then fill in minor details and you are all set! This will help you track past due and missing payments. Not to mention, it will keep all your business’s financial information handy for tax time.
9) Easier employee payments
Most small businesses now make use of accounting software to manage their payrolls. You simply automate payments that can go to your employees. You can even easily calculate healthcare and insurance, labor rate and manage payroll taxes.
You can be stress free, and have the automated system make these transactions and calculations for you.
10) Comprehensive customer database
You will have a collection of your entire customer database. This will help you manage:
- Customer history
- Customer service
- Customer tracking
- Customer charges
- Customer communication
Let’s say you have a previous customer return with an issue in their vehicle. You will easily be able to pull up their individual information, allowing you to provide quality customer support.
Great service goes a long way! It will surely secure consumers to return to your auto repair business each time and help generate good reviews. It can also lead to better SEO for your auto repair shop.
Maybe you have maintenance schedules for each customer. You can easily track these and manage appointment scheduling.
» Want to grow your auto repair business? Click here to schedule a demo.
Wrapping up
And there you have it. The ten best reasons you should be investing in auto repair accounting software.
The technology world is growing, why not use it to the best of your and your auto repair business’ advantage?
