Quantcast
Jump to content

Categorizing Software Expenses on Financial Statements

Twilight
 Share

Recommended Posts

Twilight Apprentice

Twilight

Posted
Posted

Hello everyone,

I have a question regarding the categorization of software expenses on financial statements. Specifically, I'm wondering if I should list expenses for computer software like accounting or computer protection separately from the software I use to actually fix cars, such as updates to scan tools and management software.

How do you handle these types of software expenses in your financial statements?

Thanks in advance for your help!

 

Twilight Apprentice

Twilight

Posted
  • Author
Posted

Well then, I'm not classifying the ACDelco and Motorcraft programming correctly. although I don't charge the customer for that just don't do enough to justify the yearly charges. 

Twilight Apprentice

Twilight

Posted
  • Author
Posted

No, I charge 2 hours to program. but on the odd brands (GM & Ford) for me, that I program and have to pay oem websites. I eat the fee. I do a lot of BMWs and programming is included in my tool's yearly subscription. 

Twilight Apprentice

Twilight

Posted
  • Author
Posted

I charge 2 hours for programming, doesn't matter the make or model. The customer pays for time only. There is no line item on the customer's invoice for a subscription fee. Whether I pay for programming software by the hour, day, week, year, VIN, credits or tokens, it is my expense in my head.  Every time I pay for software, I have it as an expense. Software for antivirus, bookkeeping, scan tool updates, repair information, shop management, and programming are all listed as an expense and are all in the same expense category. As you are saying, some of that software is a cost of goods. Yet is it a cost of goods if the customer is not billed for it. And does it matter is not an income so it's an expense all cost of goods are an expense anyway as I have to pay for them. Expense cost money. Income brings in money

  • Like 1
Andre R Enthusiast

Andre R

Posted
Posted

The GM is a cost, you have to buy each vin per vehicle the subscription is an expense. The Ford is an expense as your only paying for the software yearly subscription

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
 Share
Go to topic listing

  • Available Subscriptions

    See all Subscription Plans

  • Have you checked out Joe's Latest Blog?

    • Joe Marconi
      The Toolbox is Last to Leave, First is the Heart
      By Joe Marconi in Joe's Blog
         0 comments
      It always amazes me when I hear about a technician who quits one repair shop to go work at another shop for less money. I know you have heard of this too, and you’ve probably asked yourself, “Can this be true? And Why?” The answer rests within the culture of the company. More specifically, the boss, manager, or a toxic work environment literally pushed the technician out the door.
      While money and benefits tend to attract people to a company, it won’t keep them there. When a technician begins to look over the fence for greener grass, that is usually a sign that something is wrong within the workplace. It also means that his or her heart is probably already gone. If the issue is not resolved, no amount of money will keep that technician for the long term. The heart is always the first to leave. The last thing that leaves is the technician’s toolbox.
      Shop owners: Focus more on employee retention than acquisition. This is not to say that you should not be constantly recruiting. You should. What it does means is that once you hire someone, your job isn’t over, that’s when it begins. Get to know your technicians. Build strong relationships. Have frequent one-on-ones. Engage in meaningful conversation. Find what truly motivates your technicians. You may be surprised that while money is a motivator, it’s usually not the prime motivator.
      One last thing; the cost of technician turnover can be financially devastating. It also affects shop morale. Do all you can to create a workplace where technicians feel they are respected, recognized, and know that their work contributes to the overall success of the company. This will lead to improved morale and team spirit. Remember, when you see a technician’s toolbox rolling out of the bay on its way to another shop, the heart was most likely gone long before that.

  • Similar Topics

    • Joe Marconi
      Many Shops Have Raised their Labor Rates, But Still Struggle!
      By Joe Marconi

      Premium Member Content 

      This content is hidden to guests, one of the benefits of a paid membership. Please login or register to view this content.

    • Joe Marconi
      Is Your Labor Rate Keeping up with Rising Expenses?
      By Joe Marconi

      Premium Member Content 

      This content is hidden to guests, one of the benefits of a paid membership. Please login or register to view this content.

    • Joe Marconi
      Why Should We Settle for Discounted Pay From Warranty Companies?
      By Joe Marconi

      Premium Member Content 

      This content is hidden to guests, one of the benefits of a paid membership. Please login or register to view this content.

    • carmcapriotto
      How Much Can I Put in My Retirement? How Much Should I? [E145] - Business By The Numbers
      By carmcapriotto
      Thanks to our partners, NAPA TRACS and Promotive.
      End-of-year tax planning is in full swing, and retirement accounts are a key piece of the puzzle. In this episode of Business by the Numbers, Hunt Demarest breaks down IRAs, Simple IRAs, and 401(k)s to help you understand how to maximize savings and minimize taxes. Get actionable tips and insights to make the most of your retirement planning before the year ends.
      -The differences between Traditional IRAs, Roth IRAs, Simple IRAs, and 401(k)s.
      -Tax-saving benefits of contributing to retirement accounts before the end of the year.
      Insights into contribution limits for 2024 and strategies for funding accounts.
      -Key considerations for business owners when choosing between retirement plans.
      -Why starting small and consistent contributions outweigh one-time large deposits.
      Thanks to our partner, NAPA TRACS
      Did you know that NAPA TRACS has onsite training plus six days a week support?
      It all starts when a local representative meets with you to learn about your business and how you run it.  After all, it's your shop, so it's your choice.
      Let us prove to you that Tracs is the single best shop management system in the business.  Find NAPA TRACS on the Web at NAPATRACS.com
      Thanks to our partner, Promotive
      It’s time to hire a superstar for your business; what a grind you have in front of you. Introducing Promotive, a full-service staffing solution for your shop. Promotive has over 40 years of recruiting and automotive experience. If you need qualified technicians and service advisors and want to offload the heavy lifting, visit www.gopromotive.com.
      Paar Melis and Associates – Accountants Specializing in Automotive Repair
      Visit us Online: www.paarmelis.com
      Email Hunt: [email protected]
      Download a Copy of My Books Here:
      Wrenches to Write-Offs Your Perfect Shop 
      The Aftermarket Radio Network: https://aftermarketradionetwork.com/
      Remarkable Results Radio Podcast with Carm Capriotto: Advancing the Aftermarket by Facilitating Wisdom Through Story Telling and Open Discussion. https://remarkableresults.biz/
      Diagnosing the Aftermarket A to Z with Matt Fanslow: From Diagnostics to Metallica and Mental Health, Matt Fanslow is Lifting the Hood on Life. https://mattfanslow.captivate.fm/
      Business by the Numbers with Hunt Demarest: Understand the Numbers of Your Business with CPA Hunt Demarest. https://huntdemarest.captivate.fm/
      The Auto Repair Marketing Podcast with Kim and Brian Walker: Marketing Experts Brian & Kim Walker Work with Shop Owners to Take it to the Next Level. https://autorepairmarketing.captivate.fm/
      The Weekly Blitz with Chris Cotton: Weekly Inspiration with Business Coach Chris Cotton from AutoFix - Auto Shop Coaching. https://chriscotton.captivate.fm/
      Speak Up! Effective Communication with Craig O'Neill: Develop Interpersonal and Professional Communication Skills when Speaking to Audiences of Any Size. https://craigoneill.captivate.fm/
      Click to go to the Podcast on Remarkable Results Radio
    • carmcapriotto
      Branding... like Yellowstone [E161] - Diagnosing the Aftermarket A to Z
      By carmcapriotto
      Thanks to our Partner, NAPA Autotech
      Matt Fanslow explores the themes of branding and employee culture, inspired by the TV show "Yellowstone." Matt emphasizes the importance of a culture where team members support each other, continuous skill improvement through training and the significance of mentorship.
      Show Notes
      Discussion on "Yellowstone" (00:01:11) Branding in the Context of the Show (00:03:43) Employee Branding and Culture (00:05:15) Uniforms as Symbols of Value (00:06:34) Importance of Team Support (00:07:55) Continuous Improvement in the Workplace (00:10:35) Character Growth and Skill Development (00:12:52) Setting Expectations for Employees (00:14:13) Valuing Employee Contributions (00:16:55)
      Thanks to our Partner, NAPA Autotech
      NAPA Autotech’s team of ASE Master Certified Instructors are conducting over 1,200 classes covering 28 automotive topics. To see a selection, go to napaautotech.com for more details.
      Contact Information
      Email Matt: [email protected] Diagnosing the Aftermarket A - Z YouTube Channel
      The Aftermarket Radio Network: https://aftermarketradionetwork.com/
      Remarkable Results Radio Podcast with Carm Capriotto: Advancing the Aftermarket by Facilitating Wisdom Through Story Telling and Open Discussion. https://remarkableresults.biz/
      Diagnosing the Aftermarket A to Z with Matt Fanslow: From Diagnostics to Metallica and Mental Health, Matt Fanslow is Lifting the Hood on Life. https://mattfanslow.captivate.fm/
      Business by the Numbers with Hunt Demarest: Understand the Numbers of Your Business with CPA Hunt Demarest. https://huntdemarest.captivate.fm/
      The Auto Repair Marketing Podcast with Kim and Brian Walker: Marketing Experts Brian & Kim Walker Work with Shop Owners to Take it to the Next Level. https://autorepairmarketing.captivate.fm/
      The Weekly Blitz with Chris Cotton: Weekly Inspiration with Business Coach Chris Cotton from AutoFix - Auto Shop Coaching. https://chriscotton.captivate.fm/
      Speak Up! Effective Communication with Craig O'Neill: Develop Interpersonal and Professional Communication Skills when Speaking to Audiences of Any Size. https://craigoneill.captivate.fm/
      Click to go to the Podcast on Remarkable Results Radio


  •
    Joe Marconi

    Five Proven Tips to Improve Your Bottom Line

    By Joe Marconi, in Selling Automotive Repair,

    0 comments 178 views
    Joe Marconi

    Money Isn’t The Motivator We Think It Is

    By Joe Marconi, in Automotive Management,

    0 comments 152 views
    Joe Marconi

    Isn’t It Time We Rethink What a Master Level Technician Is?

    By Joe Marconi, in Automotive Industry,

    1 comment 203 views

  • Our Sponsors



Main Sections

More Sections

Discussion Forums

×
×
  • Create New...