Business Finances, Taxes, Etc.

[tasr]

Hi All,

 

I'd like to thank everyone who has helped answer so many questions recently.

 

I'm in the process of finalizing the opening of our Auto Repair shop and I got a call from a CPA offering their services. Basically their offering is a subsription type service that allows me to contact them with any questions etc and they help file taxes each year etc etc.

 

However being new to this I would appreciate any input on how you all manage the finances of your business.

 

I was hoping quickbooks would be sufficient for me but apparently they recomend proffesional help.

 

Our shop consists of 2 full time mechanics and myself to manage and run the whole thing as well as the initial service advisor.

[Jeff]

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[flacvabeach]

Definitely need an accountant and one that understands your business. Quickbooks is a great product, but you still have to understand accounting principles to make it work. A good accountant can give you advice on large equipment purchases and associated depreciation. Our tax code has made it complicated to run a small business. You don't want to be surprised by a big tax bill each year, so find an accountant who can help you plan for the future.If you want a recommendation for one of the best in the business, email me.

[bstewart]

 

Definitely need an accountant and one that understands your business.

 

This is extremely important. Many accountants do not understand this business.

They will say you always need to "reduce your expenses" and they will include your labour as one of those expenses.

In this business, your labour is the ONLY thing that truly makes you money, with no labour, there would be no parts sales, and no business. Your labour is your biggest asset!

 

If you have an accountant that tells you to reduce your labour expense, fire them and find an accountant that understands this industry.

Edited July 30, 2014 by bstewart