As with any business, financial control is crucial to success. You don’t need an accountancy degree to do this, but a basic level of understanding will take you a long way. A good auto shop software will help you to manage your finances and give you a better understanding of the accounting process.
If you are lucky enough to have reached a point where you can start investing in assets, the auto shop software will help you keep track of where your money is going. Now, we are not talking about real estate here, any savvy auto owner will know that this is jargon for equipment. Whatever you purchase, it is essential that you monitor the revenue that is generated from it, this will let you know whether to invest in similar equipment in the future.
Luckily, the budgeting process does not need to be performed very often, once a year or once a quarter will suffice. At the very least, you should be looking at areas where the most money is being spent. There are several different costs associated with an auto repair store, these include direct and indirect costs. Direct costs are typically related to labor and parts where as indirect costs are related to marketing and advertising. Whatever you are spending, the auto shop software will let you know whether you are generating a return on your investment.
Accounting systems produce two main financial statements, the profit and loss statement and the balance sheet. In general, these documents are left to the accountant to access; however, it is a good idea if you know how to read and interpret them. The balance sheet is basically a summary of liabilities and assets. Assets are good as long as they are adding value to the company, and liabilities are debts and money spent that you don’t need. If you don’t have a good asset to liabilities ratio, you may be in financial trouble. It is better to be aware of any issues early so that you can take corrective measures. The auto shop software will help you to do this.
Speaking about finances, auto shop software is not cheap, and it is an expense you will need to include in your budget. The good news is that there are some software companies that are offering a free trial which means that you won’t have to spend any money straight away. Before making a decision, evaluate the needs of your company, and then do some research to determine to which software is best suited to your needs.
Tekmetric is offering a free trial for the remainder of 2018, you don’t have to sign a contract, and there are no hidden costs. Simply test drive the product, and if you decide that its not for you, send it back at the end of the year without having to pay a cancellation fee. Either way, by that time, you will know whether the auto shop software will be an asset or a liability to your company.