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.
We team up with tire and repair shop owners to:
- Help them smooth out cashflow throughout the year
- Developing processes and procedures that allow owners to look at bank statements to know what cash is available
- Implement industry standard key measures and formulas to evaluate performance of the business and plan for how much the owner gets to take out in excess cash *because when you work with us there will be extra cash
- Key Performance Measures Include:
– Monthly budget in Costar compared to actual (or excel if using other shop software)
– Shop Labour as a % of gross profit
– Labour Efficiency
– Parts Gross Profit %
– Tire Gross Profit %
– Rent as a % of sales
– $ to owner as a % of sales
– Net profit as a % of sales
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 click here to contact us and see how our team can change your life.
After spending several years growing up in garages and working as a parts technician in one of the most profitable Volvo truck dealerships in the lower mainland, Andrew decided to expand his business skills set so he could eventually start his own business. Taking economics at the University of Victoria, he would receive his CA designation in 2008. Andrew then looked to study tax law through in-depth coursework and further specialized training. Merging his extensive auto industry expertise with the skills of a professional tax specialist, he has worked with his partner to develop a comprehensive internal accounting program for automotive repair shops that includes exit strategy and retirement planning.
For Milène, getting her BA in Commerce was just the beginning. A fascination with financial reports, budgets, and forecasting — not to mention sales figures of all kinds — led Milène towards her CA designation. Working in jobs at the highest levels of publishing, manufacturing, sales, and distribution only concentrated her interest further as she dove deep into problem-solving, often through the use of software and process implementation. Milène is focused on finding better ways to improve cash flow through improved processes and the implementation of better technology.
Thanks to Milène’s role as a controller for a group of successful aftermarket tire and repair shops, she has developed a cutting edge, profit-based accounting system that allow shop owners the ability to regularly monitor their shop and labour performance, set specific goals, and embed the appropriate parameters required to meet sales and gross profit targets.
Are you ready to earn more and work less? Call Milène and Andrew today at (778) 721-0536.