Accounting for Automotive & Mechanics
As you know, running a business can be challenging. However, operating a motor mechanic, auto electrician, tyre dealership or smash repair business presents some unique challenges. The physical demands of the job aside, you have to contend with long hours and weekend work, occupational health and safety issues, technological change, emergencies and customer deadlines.
While customers expect you to get your ‘hands dirty’ servicing or repairing their car, ute, or van it’s no surprise that bookkeeping and tax issues aren’t at the top of your agenda. While GST, BAS and tax payments often represent some of the largest financial obligations for a self employed mechanic, auto electrician or smash repairer, many end up paying too much tax and incur fines for non-compliance.
Apart from the usual small business compliance issues of GST, BAS, PAYG and superannuation, we also assist mechanics, auto electricians and smash repairers to manage their cash flow and train them to use the right software to prepare quotes, invoices and manage their payroll and apprentices. Having an accountant who understands the auto trade can potentially mean the difference between thriving and just surviving. Over the past decade, Paul Dobson and his team of accountants have mentored a number of motor mechanics, auto electricians and smash repairers through the various stages of their business life cycle – from start up right through to sale.
THINKING OF STARTING A MOTOR MECHANIC or AUTO ELECTRICIAN BUSINESS?
Starting a business is a bit like building a house and the foundations of your business are your taxation structure, accounting software and marketing. Your choice of business structure is critical and there are a number of different options such as sole trader, partnership, company and trust. When selecting the right business structure asset protection is a key consideration because of the risks associated with your industry. We also take into consideration your family profile, future profit projections and plans regarding admission of new business partners.
Accounting software selection is another brick in the foundation wall. Again, the wrong choice can be catastrophic because poor business records are one of the biggest causes of business failure. You need up to date, accurate financial records to make informed business decisions which is why we insist your accounting software matches your business needs and level of accounting skill. Using sophisticated double entry accounting software without a reasonable level of accounting skill will simply create a computerised shoebox. We aim to minimise the cost of compliance for our clients but shoebox records defeat the purpose and once we evaluate your business needs and skills we then train you to use the software. Here at SBG Accountants, we want to be your accountant and business advisor, not an expensive bookkeeper.
As you know, to build a house you also need the right tools. When constructing your business we also use a number of tools including our business start up checklist and our start-up expense checklist to identify all your potential establishment costs. It dissects your start up costs into several categories including tools, equipment, IT expenses, professional fees and marketing costs. These figures can then be transferred into a cash flow budget template to produce a projected trading statement for your first year of operations. For a motor mechanic, smash repairer or auto electrician your van, truck or ute is arguably your most important business tool. You can download our Motor Vehicle Tax Guide from the resources section of our website to learn more about the alternative methods of claiming your vehicle expenses and the distinction between a business and private trip for tradesmen. In addition, through our affiliate partners we can also assist with vehicle finance (chattel mortgage, CHP or lease) and get you fleet pricing on your new car, ute or light commercial van that could save you thousands of dollars.
We are not a traditional accounting firm who see the tax return as the end of the client process. To be honest, that’s just the
beginning. As accountants we can do some financial modelling and prepare some ‘what if’ scenarios so you understand your best
and worst case profit scenarios. Next, using industry benchmarks we can compare the performance of your business against your peers so you
understand what is working in the business and what areas you need to work on.
We have built a reputation as business start-up specialists and if you are looking to open your motor mechanic, smash repair or auto electrician business there are numerous issues to consider. There is site selection, tax registrations, insurances, the lease of the premises as well as health and safety regulations. We can assist you in all of these areas plus provide advice on HR matters, payroll and the preparation of a business plan.
Over the past two decades our team of accountants have helped dozens of motor mechanics, smash repairers and auto electricians get their business off to a flying start. We offer you experience, technical tax knowledge and most importantly, an intimate understanding of your industry.
MARKETING YOUR BUSINESS
For small business owners, your marketing can be the difference between gloom, doom and boom.
Most car mechanics, auto electricians and smash repairers rely on their reputation and referrals to grow their business. While these ingredients remain important, you need to shift your marketing focus online. Increasingly local searches like ‘Car Service South Melbourne’ are driving traffic to your website and often your website is the first touch point with a potential new customer. As you know, you only get one chance to make a good first impression and your website is your 'shopfront' and silent sales person working 24/7 to promote your business.
One of our biggest points of difference compared to other accounting firms is our marketing expertise. We can assist you with your branding (business name, logo and slogan), your corporate brochure and help you harness the power of social media to win more referrals. Over the past few years we have worked with dozens of clients to help them create affordable, quality lead generation websites that are responsive to smart phones and tablets. We can provide advice and guidance with your website content including video production and if your website lacks calls to action or lead magnets we'll help you build them. In addition, we'll introduce you to strategies like re-marketing and search engine optimization to drive more traffic to your website.
If you aren’t using some of these marketing techniques your business probably won't reach its full profit potential.
The marketing process begins with your branding and we have worked through the process with dozens of clients over the years and using some
online resources we can help you build a modern brand that resonates with your target market. We can even help you develop your stationery
at a fraction of the cost of engaging a graphic artist or marketing consultant.
It's important that you understand the Four Ways to Grow A Business so you know the key profit drivers in your business. We can walk you through a number of profit improvement strategies and even quantify the profit improvement potential in your business. Our role is to make sure you don't leave any profit on the table and if you're an auto electrician, motor mechanic or run a smash repair business we offer you a range of accounting, taxation and business coaching services including:
- Start-Up Business Advice for Motor Mechanics, Auto Electricians and Smash Repairers
- Advice regarding the Purchase or Sale of your Business
- Tools including the Start-Up Expense Checklist and Templates for a Business Plan, Cash Flow Budget, Letterhead and Business Card
- Advice and Assistance with the Establishment of Your Business Structure
- Tax Registrations including ABN, TFN, GST, WorkCover etc.
- Preparation of Business Plans, Cash Flow Forecasts and Profit Projections
- Accounting Software Selection and Training – Bookkeeping, Invoicing, Quotes & Payroll
- Preparation and Analysis of Financial Statements
- Preparation of Finance Applications
- Bookkeeping and Payroll Services
- Income Tax Returns and Tax Planning Strategies
- Wealth Creation Strategies and Financial Planning Services
- Industry Benchmarking and KPI Management
- Vehicle & Equipment Finance (Chattel Mortgage & Lease)
- Assistance with your Marketing including your Branding, Corporate Brochure and Website
- Monitoring and Controlling Labour and Sub-Contractor Costs
- Advice & Assistance with Pricing your Services and Claiming Vehicle Expenses
- Recession Survival Strategies
- Advice regarding Employee Relations and Workplace Laws
- Business & Risk Insurances (Income Protection, Life Insurance etc.)
- Business Succession Planning
We understand the auto trade and currently service the accounting and taxation needs of a number of mechanics, auto electricians, tyre dealers and smash repairers around Australia. If you’re looking to get your business off to a flying start or want to book your business in for a ‘service’, contact us today on (03) 9629 6744.
We invite you to book a FREE, one hour introductory consultation to discuss your business needs. You can expect practical business, tax, marketing and financial advice that could have a significant impact on your bottom line. To book a time, call us or complete your details in the box at the top of this page. Let's get to work ON your business so it is more profitable, valuable and saleable.
SBG Accountants & Business Advisors - Taking Care of Business