Over the years we have worked with numerous owners in the automotive industry, including owners of auto repair shops.
Through our work we have noticed that auto repair and tire shop owners are very knowledgeable when it comes to running and operating the front end of the business but lack the time and accounting expertise to monitor the financial health of the business.
As an owner you want the business to run smoothly even when you aren’t in the shop, so that you can take holidays, leave early to catch the kids hockey game and just generally not be so heavily relied on.
Moreover for the baby boomers still operating their shops, we observe a strong need to step things up so the shop is operating as a lucrative business and can be sold for a profit; this ensures they capture a higher share value on sale and also enables prospective buyers to provide financial statements to the bank enabling them to finance the purchase.
This not only requires strong front counter team members and managers, but numbers driven oversight delivered by reliable accounting processes and reporting. At PDC we help you define your goals and work intimately with your shop management team and bookkeeper to develop day-to-day processes and instructions for all data entry into the shop management / accounting software that will move us toward those goals. We oversee that the processes are being followed and ensure we’re getting the results defined at the outset.
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We team up with tire shop owners to:
- Help them manage cashflow by monitoring open repair orders and managing inventory purchasing processes
- Developing month end closing procedures so reports from the shop management and accounting software are reliable and accurate
- Develop key measures to evaluate performance of the business
- Key Performance Measures Include:
– Monthly budget in Costar compared to actual (or excel if using other shop software)
– Labour Gross Profit %
– Labour Efficiency
– Parts Gross Profit %
– Tire Gross Profit %
– Average repair order YTD
– Number of work order monthly average
– Rent as a % of sales
– $ to owner as a % of sales
– Sales and Expenses as a % total of income
– Comparative Profit and loss YTD with $ change
You may notice our main office is located in Kelowna, but we work with clients across the country.
In the “old days” we would require clients to collect papers and have to come to their offices to collect them. Now we remotely access your computers allowing us to check-in, assist and tweak whenever you need us to; we do this all the time and clients prefer this process because we can get exactly what we need without making more work for you.
If you want to work less in your business and focus on working on your business to make it more profitable, easier to run and positioned for a sale then call us at 778-484-5401 and see how our team can change your life.