When you run an auto repair shop, you’re the catch-all for brake change, suspension, oil change, wheel alignment, tire change, battery replacement, and more services. You start early in the morning to manage staff and customer needs, and your expertise is in your line of work – so why are you torn between outsourced accounting and in-house accounting when so much is at stake?
Of course, repairing books may not be as exciting as repairing cars, but it is imperative to optimize operations and maximize profits. So, rather than juggling with vendor records, monthly financials, reconciliations, cash collections and spending 40% of your monthly average time in number crunching, it’s better to shift to outsourced auto repair shop accounting. By doing so, you can reclaim this time for daily operations and innovation.
As there are numerous benefits to outsourcing the accounting process, it is not a new or unknown trend. It has been practiced for more than three decades now. 71% of organizations outsource some amount of their accounting needs.
Yes, outsourcing accounting is a boon for 78% of 1100 small business owners. What do you think about it?
There’s more to your decision of outsourcing accounting than just cost and time savings. Let’s take a deep dive into the advantages of outsourcing auto repair accounting to determine whether it’s a necessity or merely a choice.
The Outsourcing Advantage: Turbocharge Auto Repair Financial Operations
As your shop scale in size and complexity, you grapple with intricate accounting, monthly reports, and compliance challenges that increases the stress leading to inefficient processes and the risk of critical errors.
Outsourcing accounting helps you to take your auto repair shop to the next level. Also, your decision to outsource auto repair shop accounting comes with strategic advantages mentioned below.
Deep Domain Expertise of Outsourced Auto Repair Accounting Partners
Outsourcing partner goes beyond the numbers to bring invaluable benefits to the table. With a full-service team handling parts tracking, reconciliation, inventory control, accounts payable, accounts receivable, and financial reporting, accounting accuracy is ensured.
Their auto repair accounting expertise and insights enable you to gain peace of mind and total governance of financials, resulting in better focus on core objectives and improved business profitability.
Take the Wheel: Minimize Responsibilities by Outsourcing Accounting
By offloading accounting to outsourced accounting service providers, you can alleviate the burden of financial operations and minimize the risk of errors and compliance issues.
The extended team that comprises of Jr. Staff Accountant, Sr. Staff Accountant, Team Leader, Manager, and Client Representative take charge of consistent and accurate tracking and recording of invoices, receipts, purchased and returned parts, reconciliations, monthly reports, and more.
You can take back more time in a day to interact with clients and refocus on customer acquisition and innovation.
Gain Full Control Over Payables
Your income is massively dependent upon ordering different auto parts and supplies. With detailed recording of purchased and returned parts like filters, belts, batteries, spark plugs, brakes, tires, and more, you can monitor cash flow, eliminate risk of inventory shrinkage, ensure efficient expense management, and improve vendor relationships.
More Productive Hours
Administrative tasks, specifically bookkeeping, demand considerable time and attention. By outsourcing accounting, you have more time to focus on core business functions like oil change, wiper blades, air filter replacement, scheduled maintenance, tires change, battery replacement, brake pad replacement and rotor resurfacing, engine tune-up, wheel alignment and balancing, and more.
100% Accounts Reconciliation
Monthly reconciliations by outsourcing partner enhance internal control, avoid unnecessary spending and loss, eliminate unusual activity and errors, and discover and rectify missing credits.
Qualified outsourced accounting professionals regularly perform variants of accounts reconciliation that include bank, accounts receivable, accounts payable, inventory, payroll, vendor statement, and balance sheet, enabling you to stay compliant.
The Verdict: Necessity or Choice?
When so many parts are moving in auto repair businesses, the decision to outsource accounting ultimately boils down to strategic necessity rather than mere choice. While in-house accounting solutions may suffice for some, outsourcing offers you a competitive edge by leveraging specialized expertise and the latest technology. With a trusted outsourced accounting partnership, you can ensure 30-40% cost reduction, reclaim 33% of weekly hours, and gain the much-needed flexibility to scale your shop operations.
In conclusion, the choice is clear: outsourcing auto repair accounting isn’t just about repairing the books; it’s about maximizing profits, efficiency, and growth in an increasingly competitive industry. By embracing outsourced accounting as a strategic necessity, you can navigate financial complexities with confidence and focus on what you do best: keeping cars on the road in good condition.
