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Hey guys, I'm finally getting all my ducks in a row over at the shop. (Well for the most part). I should be receiving my LLC paperwork from the state of Ohio any day now. The DBA will take another couple weeks. As you all may have read in some of my prior postings we aren't a high volume shop at this point in time, but we are growing steadily. I'm loosing my best technician other than myself on Friday of this week. And come monday I have a college student with two years of automotive tech training from the local community college starting on Monday, he's only going to be part time until he finishes his education at the community college, as I have agreed to of course work him around his school schedule. As well I may need to bring in another full time technician, although I'm still having trouble finding one who is worth a darn. More on that later.

 

 

Well since my shop is about to be official within the next couple days, and I'm hiring technically my first employee. Where in the world do I start as far as accounting/book keeping? I can't afford to pay an accountant at this point in time, and I have the experience of doing my own 1099 taxes for the past 5 years, so I understand the basics of profit and loss, etc... My biggest issue here is not only going to be book keeping, profit and loss, but also: payroll, federal, state, city, social security, and workers compensation, and etc for my employees... What do some of you small guys use, or have used when first starting up.

 

I know from reading a lot on here I should just hire someone in charge of my quote un quote HR dept, service writing dept, etc... but as well I'm not in full bloom as many of you guys are, and need to save as much cash for the business as possible at this point. We still need more equipment and etc... Any help or words of wisdom here will be much appreciated guys. And as far as this forum goes should be a wealth of information for future use of any new comers, possibly a good "sticky"...

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  • Have you checked out Joe's Latest Blog?

         13 comments
      Most shop owners would agree that the independent auto repair industry has been too cheap for too long regarding its pricing and labor rates. However, can we keep raising our labor rates and prices until we achieve the profit we desire and need? Is it that simple?
      The first step in achieving your required gross and net profit is understanding your numbers and establishing the correct labor and part margins. The next step is to find your business's inefficiencies that impact high production levels.
      Here are a few things to consider. First, do you have the workflow processes in place that is conducive to high production? What about your shop layout? Do you have all the right tools and equipment? Do you have a continuous training program in place? Are technicians waiting to use a particular scanner or waiting to access information from the shop's workstation computer?
      And lastly, are all the estimates written correctly? Is the labor correct for each job? Are you allowing extra time for rust, older vehicles, labor jobs with no parts included, and the fact that many published labor times are wrong? Let's not forget that perhaps the most significant labor loss is not charging enough labor time for testing, electrical work, and other complicated repairs.  
      Once you have determined the correct labor rate and pricing, review your entire operation. Then, tighten up on all those labor leaks and inefficiencies. Improving production and paying close attention to the labor on each job will add much-needed dollars to your bottom line.
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