2 min read
Running an auto repair shop involves juggling a series of moving parts. Not only do you need to think about the cost of repairs, but you also need to track your employee hours, inventory costs, and tax bills. The best accounting software for auto repair shops puts all income and expenses in a convenient cloud-based location for better organisation. In this guide, we’ll cover which features are most important for auto mechanics and shop owners.
Why is auto repair accounting software important?
An auto repair shop is a hub of activity involving numerous inflows and outflows of cash. Mechanics must order parts from suppliers, schedule appointments with clients, and track billable hours for each job. Using auto repair accounting software lets you manage all this activity from a single, cloud-based platform rather than relying on multiple spreadsheets and systems. With an integrated accounting system, you can generate financial reports, automatically reconcile bank accounts, and ensure all tax records are up to date.
What is the best accounting software for auto repair shops?
Whether you work as a sole trader or manage a chain of auto repair shops, here’s some of the best accounting software to help you keep finances on track.
Our first choice is Xero, cloud-based accounting software that supports unlimited users. This makes it ideal for auto repair shops in multiple locations. Managers can log in from any location to track their inventory and sales data. Log expenses, update customer data, and manage billable hours for each repair.
Another great choice is Intuit QuickBooks Online, preferred by small businesses in many industries for its user-friendly design. For auto repair shops, it’s particularly useful when it comes to managing fixed costs and payments to suppliers. You can set up automatic bank reconciliation, manage payroll for your mechanics, and generate financial statements for more accurate forecasting. QuickBooks tracks unlimited expenditures and earnings, with double-entry accounting as standard.
3. Zoho Books
If you want a simple solution to your auto shop invoicing needs, Zoho Books makes it easy to get started. It offers invoice creation tools to give customers a full breakdown of service charges. Customers are more likely to pay invoices on time when they can see exactly what they’re being charged for. On that note, Zoho also integrates with billing and payment platforms for easier payment collection. In addition to invoicing and payments, Zoho offers expense tracking, receipt scanning, and quote generation features.
Sage is another great option for auto repair shops, particularly those that fall within the small or medium-size categories. Depending on the Sage product you choose, you can manage inventory and payroll for your business. Auto repair shops can also create quick and accurate financial reports, including income statements as well as cash flow reports. Another feature is the ability to automate your invoicing process. This enables shops to break bigger jobs down into manageable payments for car owners, providing better customer service.
Choosing the best accounting software for an auto repair shop
There’s a wealth of accounting software out there, so how can you choose the best option? Basic features to look for include:
Customer relations management
Making Tax Digital compliance
Billing and invoicing
Car identification number decoding
Integration with your existing systems is key for a swift and easy rollout of your new accounting software. Does the software fit in with your payment processing systems? GoCardless integrates with each of the options mentioned above as well as hundreds of other partners for a smooth, streamlined, efficient workflow. We offer one-off bank payments for your standard auto repair jobs using the power of open banking technology. Users can also benefit from direct debit for recurring payments, ensuring your customers have plenty of payment options.
We can help
GoCardless is a global payments solution that helps you automate payment collection, cutting down on the amount of financial admin your team needs to deal with. Find out how GoCardless can help you with one-off or recurring payments.