There are a lot of key components to the success of a Collision Repair Facility and as Mike Anderson talks about in SCRS's latest Quick Tips Video, the accounting department is not something you want to miss.
In this valuable quick tips video, Mike shares 4 quick tips about the importance of accounting and what are some opportunities in our industry to ensure our accounting department is running at its peak.
Quick Tip #1: Have a detailed and correct Chart of Accounts. Your chart of accounts should have a Main Account and Sub-Accounts attached for all components of our business (Labour, Parts, P&M, Sublet, etc). For example, you could have "Labour" as a MAIN account and "Body Labour" as a Sub-Account.
Quick Tip #2: Everything in our accounting system must have a SALE and a COST.
Quick Tip #3: Confirm that your Accounts are mapped correctly in your Management System- this is critical to make sure that the information that's being imported into your system is the correct information.
Quick Tip #4: You'll also want to make sure that you Adjust your WIP each month by completing a Journal Entry and adjusting your Balance Sheet. This is important to make sure that whatever expenses you occurred in that month- the sale also gets accounted for.
But, we made sure not to give away all the accounting details, so you'll want to take a few minutes to listen to this short video on the Quick Tips, the Value of a Profit & Loss Report and who you can reach out to if you need Accounting Support.
Video Created by SCRS, Collision Advice.
Summarized Blog Written by Auto+ Performance
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