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  1. It’s no secret that time is limited as an auto repair shop owner. Between diagnosing complex engine issues to managing your mechanics and creating a five-star customer experience, there’s often little time left to focus on your financials. But what happens when tax season rolls around, and you’re forced to buckle down on organizing your records and preparing your returns? At Three Rivers Bookkeeping, we know the needs of your auto repair business from the inside out. You’re dealing with parts inventory, labor costs, shop equipment, and fluctuating busyness. Navigating the intricacies of tax filing on top of all that can be a real headache. That’s why we’ve put together these practical tax tips to help you simplify the filing process! Follow these steps to get your financial house in order before the tax deadline on April 15th! Tax Tip #1: Organized Record-Keeping (From Day One!) This might sound obvious, but organized records are the foundation of stress-free tax filing. Don’t wait until January to start sifting through a shoebox full of receipts. And if you’re reading this in April, remember to start getting organized now for next year! Implement a consistent system for tracking all your income and expenses throughout the year. Here’s a framework to follow to keep your records organized in your auto repair shop. Separate Business and Personal Finances: This is crucial. Keep your business bank accounts and credit cards strictly for business transactions. This makes it significantly easier to track income and deductible expenses. Categorize Everything: Establish clear categories for your income (e.g., labor, parts sales, diagnostics) and expenses (e.g., parts purchases, payroll, rent, utilities, insurance, marketing, shop supplies). Use accounting software or even well-organized spreadsheets to do this consistently. Document Everything: Your records should be kept to the same standards as your shop schedule and organized and clear! Track your invoices, parts receipts, bank statements, credit card statements, and payroll records — no matter how small the cost! Every bit matters. Track Mileage: If you or your employees use personal vehicles for business purposes (e.g., picking up parts, making service calls), keep a detailed mileage log. This should include the date, purpose of the trip, starting and ending mileage. Organized records make it easier to identify deductible expenses, accurately calculate your income, and prepare your tax forms. This will save you tons of time and effort during filing season. Tax Tip #2: Don’t Be Afraid to Leverage Technology Technology is your best friend when it comes to efficiently managing the finances in your auto repair business. If you’re still relying on manual spreadsheets and a spare notebook, it’s time to swap them out for accounting software that is designed specifically for small businesses. We recommend QuickBooks Online because it streamlines all of the important areas in business, including: Your financial tracking process Automated reports Invoicing Payments Payroll You can even connect it to your bank accounts and credit cards to make importing transactions and categorization a hands-free task. Tax Tip #3: Know Your Deductions Your deductions can make or break you during tax season, which is why it’s critical for you to understand them! As an auto repair shop, your needs are very different from other service-based businesses. Knowing what you can deduct is key to minimizing your tax liability. Here is a checklist of common deductions specifically for the auto repair industry: Cost of Goods Sold (COGS) Labor Costs Rent and Utilities Insurance Vehicle and Equipment Expenses Shop and Office Supplies Marketing and Advertising Professional Fees Tax Tip #4: Plan Ahead and Don’t Wait Until the Last Minute If you find yourself frantically scrambling at tax season, planning ahead WILL help! Make tax season simple by staying organized, having financial systems in place, and relying on automated software. Navigating your bookkeeping and tax filing on your own can be time-consuming and lead to costly errors. If you want to leave your tax filing to the professionals, we’d love to help! Three Rivers Bookkeeping specializes in working with auto repair shops, so you can rest assured during tax season.
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  2. Isn’t It Time We Rethink What a Master Level Technician Is? By Joe Marconi, an Elite Worldwide Blog - My roots in the automotive industry go back to the 1970s working in a small 2-bay auto repair shop. As a young technician, my goal was to attain the status of master-level. That meant that I was expected to repair or service nearly anything that rolled into my work bay. However, “anything” really only meant vehicles made by General Motors, Ford, and Chrysler. The Big Three, as they were once known, dominated the roadways in those days. With a limited number of vehicle brands to learn, it didn’t take long to become proficient in all areas of automotive repair, from engine mechanical, drivetrain, electrical, steering, suspension, and all other systems. That was back then. Let’s fast forward to today. Unless you specialize in certain areas and/or on specific vehicle brands, it is becoming increasingly more difficult to be proficient in a wide range of vehicle models and vehicle systems. The training, technical information, and equipment that is required today to be an all-around master-level technician is too overwhelming. In this blog, I will explore a few ideas and push the envelope with a few controversial concepts. My goal is to help advance the automotive aftermarket and to improve the perception the typical consumer has of our industry. Everyone employed in the automotive industry should feel proud of the work they do. The Reality of Modern-Day Automotive Repairs and Service Is it reasonable these days to expect a technician to solve a complicated check engine light problem on Lexus, then jump to an electrical fault on a Volvo, and then analyze a transmission issue on a Dodge diesel pickup truck? Is it also reasonable to expect that technician to remain highly productive bouncing from problem to problem on different vehicle brands? The belief that the average technician can attain master-level status on a wide variety of vehicle brands and in all areas of auto repair has become unrealistic. We need to define different criteria. Should There Be a Change to ASE Certifications? We also need to consider the standards set by ASE (Automotive Service Excellence). Achieving ASE Master Level status requires passing a series of tests in a particular area of expertise. Most technicians consider ASE certifications to be a badge of honor, an achievement of accreditation. There is nothing wrong with this. However, in this modern world of sophisticated automotive technology among a vast array of vehicle brands and systems, does passing a series of tests accurately determine someone’s skill level and proficiency? There is no doubt that the ASE does a great job of creating standards for our industry, and their dedication to our industry cannot be ignored. However, I believe that the topic of what determines a Master Level Technician is something that the ASE needs to take a hard look at. A Shift in Our Mindset is Needed About eight years ago, I hired a technician that emigrated from Greece., we’ll call him Pete. When I reviewed his employment application, he noted that he was an Undercar Specialist. In his home country, Greece, he was trained in brakes, steering, suspension, wheel alignment, driveline issues, axles, tires, and wheel balance. I hired him, at first, as a B-level technician. What I found out in a short time was something I never considered before. Pete was so competent in his areas of expertise that I eventually promoted him to A-level technician and paid him accordingly. By focusing on certain vehicle systems, he was able to become highly proficient in those areas; to the point where he was the go-to tech in my shop for any undercar problem. Pete’s work was top-notch, with virtually no comebacks and the highest quality. The question is, why shouldn’t Pete be awarded the recognition of Master Level in his field of expertise? Here’s another thing to consider. We often complain about finding competent technicians. Techs that can handle everything we throw at them. Again, is this realistic? That may have been a reasonable expectation in 1985, but is it today? We need to shift our mindset and help young technicians choose their area of expertise, based on their strengths and preferences. This will build a larger pool of qualified technicians. This strategy would also open up more jobs for more people to enter our industry. With the proliferation of technology, diesel, hybrids, and electrical vehicles, doesn’t it make sense to have many areas of master-level status? Perhaps we need to take a page from the medical field. In the medical field, you have surgeons, cardiologists, gastroenterologists, pediatricians, obstetricians, gynecologists, dentists, and more designations. They are all specialists in their particular field, and they are all called Doctors. The Economic Reality I want to address the economic impact of running an auto repair shop these days. There isn’t a shop owner today who is not financially affected by the evolution of the modern automobile. The associated rising costs for tools, equipment, training, and information systems are heading into uncharted territories. Can the average repair shop afford to keep current on all makes and models? Buying expensive equipment, for example, has become a challenge. Shop owners often struggle, asking, “Why buy an expensive piece of equipment, only to be used once or twice a year? Where’s the return on investment?” With respect to being profitable, again I go back to what I stated earlier, can an auto repair shop be productive in all areas and on all makes and models? High levels of production are needed to generate profit. However high levels of production rely on creating processes on a predictable set of operations. What this means is that when a repair shop narrows its focus on what they do best, and on the vehicle brands they train on, those shops become more productive. They also become more profitable than those shops trying to be all things to all people. My Proposed Solution The automotive aftermarket industry must adopt a new way of thinking. Just like the medical field, technicians should be able to, and encouraged, to specialize. This would allow someone to achieve master-level status technician in a specific area of automotive repair. Just as in the example above with my technician, Pete, we would have highly skilled technicians proficient in different areas. We would have under-car specialists, transmission specialists, drivability specialists, EV/Hybrid specialists, engine specialists, and other designations. And they would all be considered Master Level Technicians in their field of expertise. Productivity and efficiency would improve, more jobs would be made available, and more people would have pride in what they do, and in the industry they work in. Conclusion At Elite Worldwide, we are committed to helping our clients stay on the cutting edge of business strategies. We are also firmly committed to elevating the auto industry, raising the bar for all auto repair shops, and for those working in the automotive aftermarket. From our Top Shop Coaching programs, Pro Service peer groups, and our service advisor Master’s Program, Elite has the business solutions to help you take your company right to the top!
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  3. I'm a one man and one bay shop that's been open since '09 as well. my shop is dead center in an office / industrial park so it's very easy for those people to leave there cars for the day. It also doesn't hurt that my shop is in the town and neighborhood I grew up in so I already had a good trusting customer base. I opened at 23 and haven't slowed since. I'd hire someone but the one bay really limits things. I don't do the numbers these other guys do and I don't even know my average ticket but I put $130k in my pocket at years end. maybe your problem is location or population? My shop is also in a fairly affluent area so that helps
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  4. I have spoke with you in the past and we met at PRI. Our shops have some similarities as far as the kind of work we do. I am sorry to hear you are still struggling. I completely agree with hiring someone at minimum wage. Give a kid a chance that is a total motor head who is willing to learn. This will free up some of your time. Teach and demand from him quality, and to do it right. He will become a valuable asset. Or if you can find someone experienced that can bring some business with or fill in your weak areas, that would help you. Our chassis dyno took awhile to be busy, it is something you have to create a reputation. We started out only scheduling dyno pulls for Fridays and Saturdays..... Why? Word of mouth travels faster on those days in the performance area. It is just before the weekend and your customer will brag all weekend. Another suggestion from our experience: Change your shop labor rate..... RAISE IT! Have two different rates. Have an hourly rate for your daily drivers, and a second, higher rate for performance.... and do not make excuses for the higher rate! Your experience and knowledge on performance is worth more than general auto repair rate. Our hourly rate is $90 and our rate is $130 for classics (older than 30 years) and performance. We take pride in our performance side of the business and you get what you pay for, a top notch job done by an experienced shop. With the higher rate, we have earned respect and the performance shop did not slow down this winter. You have customers telling you about other shop's pricing. Are you comparing apples to apples? Do you take in the same clients? Secret shop the competition and find out for yourself. Don't go on the word of a customer that wants a deal, fire them and define the type of customer you do want in your shop. (Sorry so long)
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