https://www.autoshopowner.com/rss/2-articles.xml/Latest Articlesenhttps://www.autoshopowner.com/articles/automotiveindustry/spring-clean-your-finances-5-steps-every-business-should-take-r549/With spring upon us and the weather warming, it’s the perfect time of year to do some good spring cleaning. However, it’s not just our homes that can benefit – our finances can benefit from intentional tidying up and decluttering as well. This can lead to increased efficiency, better cash flow, and improved overall financial health for our businesses if done right and done consistently. In this blog post, we’re sharing 5 essential steps to spring clean your finances each and every year. 5 Steps to Spring Clean Your Finances When spring cleaning your business finances, it’s important to do this in a step-by-step approach so you know exactly where you’re at, what you can improve on, and what action steps you need to take. Follow these 5 steps to declutter and improve your business finances this spring. STEP #1: ANALYZE EXPENSES Start by going through your expenses with a fine-tooth comb to identify any unnecessary or redundant costs that could be cut down. This could be subscriptions to services, softwares, or programs you no longer use, excessive spending on office supplies, or high fees from vendors or suppliers. By identifying areas where you can reduce expenses, you can free up more funds to invest in more profitable areas of your business. STEP #2: NEGOTIATE BETTER TERMS After identifying areas for potential cost savings, don’t be afraid to reach out to vendors or suppliers for better terms. Negotiating lower prices, longer payment terms, or bulk discounts is a great way to cut back on expenses and ensure you’re getting the best possible deal. Building strong relationships with your vendors and suppliers can also lead to perks such as exclusive deals or priority service, so be sure to keep those relationships and communication strong. STEP #3: UPDATE BUDGETS AND FORECASTS After analyzing your expenses, you’ll have a clearer picture of your current financial status and areas in which you can cut back and improve. Now, it’s time to update your budgets and forecasts for the rest of the year. Review your revenue projections and compare them to your expenses to ensure they’re in alignment for a profitable year. Adjust your budget as needed to account for any changes in your business, the market, etc. It’s a good idea to revisit your budget and forecast regularly to stay on track and make informed decisions throughout the year. This can help prevent you from reaching the end of the year and falling short of your goals. STEP #4: PREPARE FOR EMERGENCIES No one likes to think about worst-case scenarios, but it’s so important to be prepared for emergencies as a business owner. Review your insurance coverage to ensure it covers your needs. Consider adding or updating policies as you see fit. Establish an emergency fund for your business to cover unexpected expenses or disruptions to your business operations. The last thing you want is to be unable to pay your bills or your employees should something go awry. Having a financial safety net in place gives you peace of mind knowing that you can weather any financial storms that come your way. STEP #5: IMPROVE INVOICING AND COLLECTIONS PROCESSES Lastly, having efficient invoicing and collections processes is essential for maintaining a healthy cash flow and keeping things running smoothly. Review your current invoicing and collections processes to identify any inefficiencies or areas holding you back. Consider implementing software solutions like Wave that streamline invoicing, automate reminders for overdue payments, and provide insights into customer payment behavior. Improving your invoicing and collections processes can reduce the time it takes to get paid and minimize the risk of late or unpaid invoices. This is the perfect time of year to spring clean your finances and ensure your business is set up for success and efficiency in the months ahead. Take a good look at where you’re at income and expense-wise, update your budgets and forecasts accordingly, prioritize planning for emergencies, and look for ways to make invoicing and collections more streamlined. By following these steps, you’ll be in good financial health and ready to grow for the rest of the year.Wed, 06 Mar 2024 14:06:00 +0000https://www.autoshopowner.com/articles/automotiveindustry/tax-season-preparation-a-comprehensive-guide-r548/Tax season is just around the corner, and for many, this time of year can be both daunting and overwhelming. However, with the proper planning and organization, you can take on tax season with confidence! This blog post will serve as your comprehensive guide to tax season preparation, outlining the key steps you need to take to ensure a smooth and stress-free tax season! How To Prepare For Tax Season Preparing for tax season seems like a year-long process at times. From tracking mileage to organizing receipts, there’s always something tax-related to do. However, when the calendar turns over to a new year, it’s time to really start thinking about tax season preparation and the steps you need to take to get ready for filing day. Read on for your complete guide to tax preparation and everything you need to know! STAY INFORMED ABOUT TAX LAW CHANGES Tax laws are ever-changing and it is your responsibility to stay informed on these changes, as they can make a significant difference. Familiarize yourself with any updates or changes to tax laws that may affect your filing status or eligibility for credits. You can also reach out to your tax preparer or accountant for more information on these changes and the potential impacts on your taxes. GATHER AND ORGANIZE KEY DOCUMENTS This is one of the most daunting parts of the tax season preparation process – gathering all of the key documents needed. This includes tax forms such as W-2’s, 1099s, and other forms. You’ll also want to gather and organize receipts, mileage records, social security documents, bank statements, income statements, expense records, payroll records, tax deduction records, profit and loss statements, balance sheets, financial statements, and any other relevant or requested paperwork. Take some time to review all of your financial documents and categorize them by income and expenses to make it easier to identify potential deductions or tax credits. You can use an accounting software like Quickbooks Online to make this process simple. Having all of the documents you need to properly file your taxes in one organized place will save you a lot of time and prevent last-minute searches. EXPLORE DEDUCTIONS AND CREDITS With all of your documents and records organized and in one place, you can explore and identify potential deductions and credits that are available to you. Some common deductions and credits include: Mortgage interest. Student loan interest. Medical expenses. Startup costs. Business expenses. Depreciation. Child Tax Credit. Education Credits. These deductions and credits can save you significant amounts of money, so do your due diligence and explore all of your options. CONSIDER PROFESSIONAL HELP While some individuals prefer to handle and file their taxes themselves, it is beneficial to seek out professional help. Tax professionals can provide advice and expertise, help ensure that you have everything you need, it’s all accurate, you are maximizing your savings, and overall, help you navigate tax season with a little more ease and peace of mind. PLAN FOR RETIREMENT CONTRIBUTIONS If you’re looking for more ways to positively reduce your tax liability (while planning for the future!), you can contribute to retirement accounts, such as 401(k)s or IRAs. Evaluate your contributions and look for ways to maximize them in order to take advantage of potential tax benefits, thus, reducing your tax bill. REVIEW BEFORE SUBMISSION Just like when you were in school getting ready to turn in a big test, it’s key to thoroughly review your tax return before submitting it. Check to make sure that all information is entered correctly, you’ve chosen the correct filing status, and all deductions and credits are accounted for. REFLECT AND PLAN FOR NEXT YEAR While you may be begging for a break from taxes once you’ve filed, this is a great time to reflect and plan for next year. Consider ways to make your life easier when it comes to next year’s tax season preparation as well as ways that you can maximize your tax savings. You may look at adjusting your withholdings, organizing your financial documents throughout the year using Quickbooks Online, tracking mileage using a software like TripLog, or managing your receipts online using Hubdoc or Dext. It’s never too early to stay proactive with your tax planning. By following these steps and guidelines for tax season preparation, you can stay on top of things, take advantage of resources and opportunities to save, and get through tax season with less stress and more confidence.Wed, 07 Feb 2024 15:06:00 +0000https://www.autoshopowner.com/articles/automotiveindustry/understanding-s-corp-distributions-and-draws-are-they-taxable-r547/Understanding and navigating the tax implications and responsibilities of business income is crucial for every business owner, especially those operating as an S-Corp. A very common question that often arises is whether or not S-Corp distributions and draws are taxable. In this blog post, we’ll answer this question and explore the key considerations of S-Corp taxation. What Are the Benefits of an S-Corp? First, it’s important to understand the benefits of operating a business as an S-Corp. S-Corps provide a unique level of flexibility with money, as there is a single-level of taxation on income generated by the corporation. This differs from C-Corps, in which profits are taxed at both the corporate and individual levels. In an S-Corp, income “passes through” to the shareholders, meaning it is subject to tax on the shareholder’s individual income tax return, not the business’s. Are S-Corp Distributions and Draws Taxable? Now, let’s answer the burning question of, are you going to be taxed on distributions and draws from an S-Corp? The short answer is… no! Generally, you are not taxed on distributions and draws, which is one of the most significant benefits that an S-Corp offers. However, the key to all of this is to pay yourself a fair and reasonable wage as an S-Corp shareholder. The IRS requires you to compensate yourself adequately, and once you have paid yourself a fair and reasonable wage, you are free to distribute or take the remaining profits out in draws. Avoiding Payroll Tax Pitfalls Keep in mind that as your profits increase, it’s not recommended to increase your payroll. Why? This leads to higher payroll taxes! However, S-Corp distributions are not subject to these payroll taxes, making this a better option for business owners looking to maximize their income without taking on additional tax burdens. Distinguishing Distributions from Profit Distributions are essentially the sharing of profits among shareholders. The benefit is, you don’t pay taxes on the distribution itself, just on the profit that it represents. This is key to remember when understanding the tax implications of S-Corp income. Before taking out distributions as an S-Corp, you must have actual profits to distribute. Therefore, business owners must track and manage their profits effectively in order to benefit from distributions come tax time. Avoiding Tax Issues When taking out S-Corp draws, ensure that you are taking out actual profits, not loan money, such as that from the SBA. This can have significant tax implications that can lead to complications and hassles down the road. Overall, S-Corp distributions and draws are not taxable. This makes S-Corps a great choice for small business owners looking to maximize their profits and save on taxes. Just make sure you stay up-to-date on the IRS guidelines, pay yourself a fair wage first, and ensure your distributions and draws are based on profits. This can help you make informed and smart financial decisions that benefits both you and your business long-term.Wed, 24 Jan 2024 14:56:00 +0000https://www.autoshopowner.com/articles/automotiveindustry/10-financial-resolutions-every-business-should-make-r546/With a new year upon us, this is a time for businesses to reflect on their financial strategies and make resolutions for the year ahead that contribute to the long-term success of their organization. By adopting sound financial practices, businesses can better navigate challenges, improve their efficiency and workflows, and pave a path towards sustained growth. In this blog post, we’ll explore 10 financial resolutions that are essential for every business to make in order to have a profitable, prosperous year ahead. 10 Essential Financial Resolutions For Businesses #1: REGULAR FINANCIAL REVIEW Commit to regular (monthly or quarterly) reviews of financial statements. This includes income statements, balance sheets, and cash flow statements. Doing so will help you better understand the financial health of your business while providing you valuable insights into revenue trends, expenses, and overall financial stability. #2: INVEST IN TECHNOLOGY UPGRADES Invest in modern technology such as automotive diagnostic software, customer relationship management (CRM) systems, or accounting software to streamline your operations, save time, and increase efficiency. Consider tools like Tekmetric, Nifti CRM, and Quickbooks Online to enhance various aspects of your business. #3: SET ASIDE EMERGENCY FUNDS Financial stability largely depends on your ability to prepare for unforeseen circumstances and challenges. Therefore, make it one of your financial resolutions this year to build an emergency fund to cover unexpected expenses or economic downturns. This financial safety net can help your business stay afloat during tough times. #4: BENCHMARKING AND GOAL SETTING Regularly benchmark your business against industry standards and set realistic financial goals. Use these benchmarks and goals as a roadmap to guide you in making sound business decisions and tracking progress. #5: FOCUS ON CUSTOMER LOYALTY AND RETENTION Acquiring new customers is essential for business growth, but retaining existing customers is equally, if not more important to the longevity of your business. Plus, retaining existing customers is often more cost-effective. Develop strategies to enhance customer loyalty, such as implementing a rewards program, providing exceptional customer service, or offering regular maintenance packages. #6: OPTIMIZE INVENTORY MANAGEMENT Optimizing inventory is another key financial resolution for businesses. Aim to efficiently manage inventory to ensure that parts and supplies are available when needed, without tying up too much capital in stock. Consider implementing an inventory management system to track stock levels and optimize ordering. #7: TAX PLANNING AND COMPLIANCE Staying up-to-date on tax laws and regulations is key for your business’s financial health, especially come tax time. Work with a tax professional to develop efficient tax planning strategies and ensure compliance, thus, avoiding penalties and maximizing deductions. #8: DEBT MANAGEMENT Strategize to manage and reduce debt in the new year by prioritizing high-interest debts and looking for opportunities to refinance or consolidate loans for better terms. This can help cut down on loan payments and improve your cash flow and profitability. #9: REDUCE UNNECESSARY EXPENSES Reducing unnecessary expenses is a smart financial resolution in both your personal life and your business. Identify and eliminate unnecessary expenditures by regularly auditing expenses and finding areas where costs can be reduced without impacting the quality of your work or customer service. #10: EXPAND MARKETING EFFORTS Invest in marketing efforts to attract new customers and retain existing ones. This can include digital marketing, social media presence, local advertising, or community engagement initiatives. Tailor the marketing strategy to target the local market effectively. By making these 10 financial resolutions, your business will be well on its way to a prosperous, profitable, and streamlined future.Wed, 10 Jan 2024 15:06:00 +0000https://www.autoshopowner.com/articles/automotiveindustry/how-to-do-a-year-end-financial-review-r545/With the new year quickly approaching, it can be tempting to start planning for your future goals and projects. However, it’s important to do a thorough year-end financial review before shifting your focus to the new year. This not only helps you understand the growth you’ve made and areas of learning that you can improve on, but it allows you to celebrate your accomplishments from the past year. In this blog post, we’re breaking down how to do a year-end financial review so you can plan strategically, identify opportunities for growth, and improve your financial management and health moving forward. How to Do a Year-End Financial Review Follow these simple steps and answer these guiding questions to conduct a thorough year in review for your business finances. SET THE STAGE: WHAT WERE THE FINANCIAL GOALS? To begin this process, revisit the financial goals of the business that were set at the beginning of the year. It’s important to look at factors such as revenue targets, profit margins, and expense management. These goals serve as the benchmarks that you measure your financial performance against, so reflect on how specific, measurable, and attainable these goals were. EVALUATE GOAL ACHIEVEMENT: DID WE MEET THOSE GOALS? After reflecting on the financial goals from the past year, analyze how well you performed financially against those goals. Did your business and team meet or exceed the revenue targets? Were expense controls put in place and made effective? Were there any shortfalls? If so, what reasons can you identify for those shortfalls? Celebrate the successes and growth that contributed to meeting or exceeding any financial goals. CELEBRATE SUCCESS: WHAT WENT WELL? It’s important to celebrate the financial successes and wins of the year with your entire company. Point out successful product launches, increased sales, or cost-cutting measures that proved effective for your company. Recognize the key players that made these goals a reality and provide insights into the strengths of your team’s financial strategies and operations. LEARN FROM CHALLENGES: WHAT COULD HAVE BEEN IMPROVED? Just as it’s important to celebrate your successes, it’s also important to acknowledge the challenges and areas that could have been improved. This may be budget oversights, unexpected expenses, or inefficient financial processes. By accepting and evaluating these challenges, you can make sound decisions for the future based on experience and use this as information to eliminate potential issues in the future. REFLECT ON YOUR HONEST FEELINGS Finally, put the numbers aside and reflect on your honest feelings about the past year. Where did you feel like you made the most growth? What challenged you to grow in positive ways? What caused you stress or overwhelm? What brought you the most joy and pride? How do you feel about your business currently and what are you excited for in the future? What do you want to continue in the new year and what do you need to let go to allow for other focuses? Answer these questions honestly as you wrap up your year-end financial review. It may also be beneficial to have each team member do this to learn how everyone is feeling in terms of the company and financial goals as a whole. Overall, conducting a comprehensive year-end financial review is a powerful tool for reflecting on the past, celebrating successes, learning from challenges, and making sound financial decisions for the future based on experience and data. This is about both the numbers and the feelings of you and your team. With this year in review complete, you’ll feel more confident moving into the new year with clarity!Tue, 19 Dec 2023 23:07:00 +0000https://www.autoshopowner.com/articles/automotiveindustry/steps-to-ensure-a-smooth-financial-year-end-r544/Wed, 13 Dec 2023 15:34:00 +0000https://www.autoshopowner.com/articles/automotiveindustry/thankful-reflections-financial-wins-of-the-year-r543/Can you believe that another year is drawing close to the end? It really does seem like the older you get, the faster time goes! As we enter into the Thanksgiving season, we wanted to take some time to reflect on our achievements, the achievements of our clients, and express sincere gratitude for all of those who have made this year’s success possible. Read on for some of our thankful reflections as we celebrate financial wins from this year. Celebrating A Year of Financial Growth We’ve had the privilege of witnessing several auto shops see significant financial improvements over the course of this year. On average, clients who have been working with us for at least 1 year have seen an average revenue increase of 10.7%. That’s amazing! These financial wins are a testament to their hard work, dedication, and commitment to excellence. Our clients’ successes are our victories, so it is incredible to be able to celebrate these wins together. How Our Clients Are Seeing Success So, what exactly have our successful clients been doing to see these improvements in their business finances? Let’s take a closer look at the strategies and systems that have helped drive their financial growth. PARTS MATRICES Effective parts matrices are key for accurate pricing and inventory management. Our clients are taking advantage of this tool to optimize their pricing strategies, which directly impacts positive revenue growth. TRACKING LABOR EFFICIENCIES An auto shop’s bottom line is greatly impacted by its labor department, which is why tracking labor efficiencies is helping our clients increase profitability and identify areas for improvement. IMPLEMENTING NEW PAY STRUCTURES Our successful clients are also implementing new pay structures that work for the culture of their business, whether that is flat rate, hourly, salary, or a combo. INVESTING IN TRAINING PROGRAMS Investing in training programs for both techs and service advisors is key to the growth and development of their teams. These training programs have helped them elevate their skills and knowledge of their staff while increasing customer satisfaction and repeat customers. HIRING BUSINESS COACHES Many of our clients have also invested in industry-specific business coaches to help guide their companies towards success. Their guidance, insights, and external perspective has been a game-changer for their businesses. TRACKING KEY KPIS Lastly, many of our clients who are celebrating financial wins this year attribute their success to the tracking of key KPIs. Tracking and analyzing these KPIs has helped them make data-driven decisions for their businesses and adjust as necessary in the areas that needed more attention. Thankful Reflections From Three Rivers Bookkeeping To all the auto shops that we have the privilege of working with each and every day, we want to thank you and express our sincerest gratitude to you. Our primary goal is to see each of our clients grow and thrive. This year has been full of many financial wins, and we are honored to celebrate them alongside you. Your success is our success, and we are so thankful for the trust you have shown us.Wed, 22 Nov 2023 15:06:00 +0000https://www.autoshopowner.com/articles/automotive-advertising/how-to-set-up-a-chart-of-accounts-to-reduce-transaction-classification-errors-r542/A key aspect of managing any business is keeping accurate financial records. One of the most important tools you can use to ensure your financial data is well-structured and organized is a Chart of Accounts. When implemented correctly, a Chart of Accounts can significantly reduce the risk of transaction classification errors, which can be detrimental to your financial reporting. This makes it easier to track income, expenses, and assets. In this blog post, we’re breaking down what a Chart of Accounts is, why it’s important, and providing a few practical tips on how to set up a Chart of Accounts in your business. What Is a Chart of Accounts? Before we get into the nitty gritty of setting up a Chart of Accounts, it’s important that you understand what it is and what purpose it serves in your business’s financials. A Chart of Accounts is a comprehensive index of all the financial accounts used by a business to classify financial transactions. These accounts are categorized into different groups and subgroups, which makes recording, tracking, and reporting on financial activities much easier. WHAT IS THE PURPOSE OF A CHART OF ACCOUNTS? A Chart of Accounts serves many purposes, including organizing finances into different categories to allow interested parties to get a clear view and understanding of a business’s financial health. It also allows stakeholders to quickly locate specific accounts in order to see which transactions are occurring in each account from the general ledger. A well-organized Chart of Accounts is also helpful for comparing financial data from year-to-year. How to Set Up a Chart of Accounts When setting up a Chart of Accounts, there are a few things to keep in mind that will help you reduce transaction classification errors. A common mistake businesses make when setting up a Chart of Accounts is having too many categories and overcomplicating the entire system. CHOOSE SIMPLE CATEGORIES We recommend that you choose simple categories that are easy to remember, such as labor income, parts income, truck fuel, insurance, etc. The more simplified and easy it is to remember these categories, the less likely it is that you or your team will make transaction misclassification errors. Plus, this also helps streamline your bookkeeping process. UTILIZE CHART OF ACCOUNTS TEMPLATES Most accounting softwares come equipped with sample Chart of Accounts templates that you can use and customize to meet your specific needs depending on your industry. This gives you a solid starting point to build upon. By utilizing these templates, you can ensure the most key categories and data points are included, which will also help reduce the risk of misclassification errors or missing data altogether. Just make sure that you review the template and tailor it to match your business’s specific needs. Remove any accounts that don’t apply to your business and add accounts that are unique to your industry or company. AUTO INDUSTRY CHART OF ACCOUNTS If you are operating in the auto industry, you’ll need a specialized Chart of Accounts designed to meet the unique accounting needs of your automotive business. This automotive-specific Chart of Accounts can help you save time, effort, and frustration, as it is tailored to the unique categories, transactions, and financial data you deal with on a daily basis. If you’re looking to improve your financial data and reporting processes, implementing a well-structured Chart of Accounts is one of the first steps we recommend that you take. It will help you streamline your accounting and bookkeeping processes and gain better control over your financial data. Follow the steps in this blog post to set your Chart of Accounts up in a way that minimizes transaction misclassification mistakes and streamlines your financial reporting.Wed, 08 Nov 2023 13:34:49 +0000https://www.autoshopowner.com/articles/joe-marconis-tips-and-articles/article-when-an-employee-brings-you-bad-news-say-thank-you-r534/Featured in Ratchet and Wrench Magazine - June 2023 Steve Jobs may have been best known as the co-founder of Apple Computer and a great entrepreneur, but his style of leadership and management was highly controversial. Jobs would schedule meetings with his team, then randomly point to someone and ask, “Tell me what’s not working at this company?” After that person gave their opinion, he would then turn to the group and ask for everyone’s feedback. Then he would point to another person, and say, “Tell me what is working?” While his technique may appear divisive, Jobs placed a high value on getting valuable feedback. Which meant that he had to know the truth, no matter how ugly it might be. For most people, it’s difficult to receive critical feedback. No one enjoys learning that we dropped the ball, or that something isn’t going right. And how often does an employee walk up to you, and pull you aside to inform you of bad news? Not very often, right? While receiving praise and recognition does motivate us, growth opportunities also exist when things go wrong. How we deal with adversity and bounce back from failure tells us a lot about our mental toughness. Great success is never dependent on everything going right all the time. That’s not reality. Look at it this way: getting only good news all the time is mostly useless. On the contrary, bad news can be good news. And we should accept and welcome it. If employees are reluctant to bring you bad news, it’s an indication that they may fear confronting you. As the shop owner, you need to do a little self-reflection to ensure that you are a leader that is approachable, and not on the defensive when an employee wants to sit down and discuss things. Be mindful of how you interact with others too. Your body language and the tone of your voice will either draw people to you or push them away. If you truly want to grow as a business owner and as a leader, you need to allow others to voice their opinions and let you know that your company, at times, may not be the paradise you believe it is. The question is how do you create an environment that gives people the confidence and willingness to confront you with critical issues? Make it known that you want to create a work environment where feedback, especially when things go wrong, is accepted and welcomed. Remember, if people fear bringing you bad news or only tell you the good things, you may not have an open environment where people feel they can discuss all issues, good and bad. It’s also important to realize that to give critical feedback to others, you must be open and willing to receive critical feedback. At the start of any team meeting, let your employees know that you will be asking for everyone’s opinions on ways to improve. Emphasize that you want to hear not only what’s going right, but also where the company is failing. People’s opinions may not be shared by everyone, but one’s perspective is their reality. We need to listen to all voices. Be transparent and let everyone know that you will listen to everyone and do your best to act on everyone’s feedback. Another thing to be aware of; don’t allow an atmosphere that encourages gossip or venting. This will promote negativity and bring down morale. You need honest, healthy feedback that everyone can accept and learn from. The bottom line? The next time someone brings you bad news, look them straight in the eye, smile, and say, “Thank you!”Fri, 03 Nov 2023 11:15:30 +0000https://www.autoshopowner.com/articles/joe-marconis-tips-and-articles/vehicle-delivery-process-the-first-step-to-your-next-sale-r537/Source: Feature in Ratchet and Wrench Magazine https://www.ratchetandwrench.com/magazine Vehicle Delivery Process: The First Step to Your Next Sale Every fall I have my chimney cleaned. For years, I would search for a reputable local company. Then, 10 years ago, I met Mike at AAA Chimney, and he became my go-to guy. Each year, Mike returns and earns my trust over and over. You may wonder if it's because he cleans my fireplace better than anyone else or if it's the price. While those are reasonable questions, the real reason why he gets my business year after year is simple: Before he leaves my home, Mike takes the time to review exactly what he did, gives me tips on how to best care for my fireplace and then he books the next appointment for the following year. In essence, he performs what we know as a vehicle delivery process, or in Mike’s case, a chimney cleaning delivery process. Performing a comprehensive vehicle delivery process and booking the next appointment in our industry is nothing new. Many shops have been doing it for decades. However, there are still many repair shops that have not adopted this goldmine strategy. The vehicle delivery process helps to create that memorable experience that gives the customer a compelling reason to return. When combined with scheduling the next appointment, your repair shop stays branded in your customers’ minds, improving customer retention and helping to ensure future sales. The auto repair business today is not like it was. Even 10 years ago we would measure customer retention with a factor of four, meaning that customers visited your repair shop about four times a year for routine services. Today, unless there’s a breakdown or a warning light, you’re lucky to see your typical customer once a year for routine service. Consumers these days don’t have the same sense of urgency regarding vehicle maintenance as they once did. Just think about all those customers who have traveled over 15,000 miles in their vehicles since their last oil change. This trend has been slowly creeping up for the past 15 years, if not longer. There’s another factor we need to consider: if the length of time between visits is too long, the average consumer loses some of the emotional connection they have with their repair shop. What you don’t want to happen is when the oil maintenance light does come on, your customer just finds the most convenient shop to get the oil service done. Think that doesn’t happen? Unless you're fortunate enough to be in a heavily populated area with no competition, and car counts are never a problem, you will benefit from a well-defined vehicle delivery process; a customer touch point that brings the entire customer experience full circle. Vehicle delivery is never a transaction. It is an opportunity to keep building the relationship. It’s also essential that your service staff discusses and books the next appointment. Everyone reading this knows that booking the next appointment is a strategy being done by dentists, doctors, hairdressers, nail salons, eye doctors, pet groomers, and yes, even Mike at AAA Chimney. Booking the next appointment is not limited to oil change services either. Just consider all those recommendations you make on just about every car you service each day. Why not create a process that helps to fill up your calendar with profitable future services needed by your existing customers? Don’t rely solely on your CRM program either. The impact of an engaging vehicle delivery process is powerful. Every customer that leaves your shop today will need future services and repairs. The question is: Where will they go? Make your vehicle delivery process your first step to your next sale.Fri, 03 Nov 2023 11:14:36 +0000https://www.autoshopowner.com/articles/joe-marconis-tips-and-articles/theres-no-one-size-fits-all-repair-shop-business-model-r539/Marconi: There’s No One Size Fits All Repair Shop Business Model Knowing your business and your customers safeguard your shop against trends that may not benefit you. Joe Marconi The year was 1973 and, like many from my era, I started my career working as a technician in a gas station. The typical gas station had two to three bays, and at least two to four gas pumps. Part of my job description was to pump gas if needed. Self-serve was not yet the norm. By the way, we were open seven days a week, with half days on Christmas, New Year's, Easter and Thanksgiving. The automotive repair industry has changed dramatically over the past few decades. There aren’t many gas station/repair shop business models these days. Today, there are franchises, tire stores, off-road shops, specialty shops and other niche businesses. In many markets, the independent general auto repair shop model dominates the typical modern-day model. No matter what business type, it seems shop owners crave benchmarks and guidelines. While there is merit to this, there’s no one size that fits all business model. And there shouldn’t be. Numbers Vary Between Shops The reason why I bring this up is that there are a lot of discussions these days about certain standards that auto repair shops should aspire to. Perhaps the most popular is setting a standard for the right KPIs and profit margins. Also, many industry people are promoting the five-day workweek as the standard, with some saying that a four-day work has benefits that outweigh the five- or six-day work model. Additionally, it’s common to hear that technician production and efficiency standards need to fit into a certain range to determine the overall success of the company. We all understand the value of benchmarking as a way of analyzing what we are doing compared to other similar businesses. However, auto repair shops are like fingerprints; no two are alike. And from my experience as a former repair shop owner and now a business coach, trying to fit your repair shop into a neatly formed benchmark-based model may be more detrimental than beneficial. If we look at KPIs and margins, for example, it’s typical for a general repair shop to strive for 70% or better on labor profit and a 50% part margin. But everyone reading this understands that percentages and dollars are not the same. Some shops do not fall into the typical percentage range, but their business model produces remarkable results to their bottom line in terms of “profit dollars.” Customers Trump Trends Let’s talk about the four and five-day workweek. As I mentioned earlier, back in the '70s, the gas station I worked at was open seven days a week, with half days on holidays. When I started my own business in 1980, I was not about to be open seven days a week, and holidays were out of the question altogether. But being open six days a week was something I felt I needed to do. I had to be there for my customers. Through the years we tried to close on Saturdays, but it just didn’t work for us. This is not to say you must be open six days a week or even five days a week, which is the point I’m making. Some point to employee morale and increased production by not working a five- or six-day workweek. This may be true and probably is for many shops. But can anyone say that this is true for every repair shop, in every area of the country? Know Your Shop Here's the bottom line. While there is a benefit to having standards and benchmarks, every repair shop is different. Learn what others are doing but understand your business model and the KPIs that drive dollars to your bottom line. Then decide for yourself what makes the most sense for your business, not someone else’s.Fri, 03 Nov 2023 11:13:00 +0000https://www.autoshopowner.com/articles/automotive-management/shop-owners-why-do-employees-underperform-r541/Why Employees Underperform Joe Marconi - Featured in Ratchet and Wrench Magazine Four reasons why you may not be getting the best out of your team and what to do about it. When auto repair shop owners get together, it’s common to hear them discuss their employees. But how often do you hear shop owners talking about their best employees? Not very often, right? Shop owners are usually obsessed with underperforming employees. Let’s explore the reasons why. Potential Many shop owners and managers assume that potential, or the desire to excel, will eventually turn into positive outcomes. Unfortunately, having potential or desire doesn’t always lead to high performance. It’s important to note that no matter what someone’s potential is, they may only attain a certain level of performance, which is largely based on their natural talent. Motivation Motivation is another factor we need to consider. As a business coach, clients often tell me their employees are money motivated. I challenge this thinking. The technician who is planning to get married, buy a house and have kids knows their future involves money—and a lot of it. But what is the true motive behind the money? Sit down with your employees. Find out why they come to work each day. What really motivates them? Preferential Treatment Another reason people may shut down is when they perceive certain employees are held to a different standard. For example, your shop’s starting time is 8:00 a.m., but every day the same two employees arrive late. If you allow some employees to set their own rules, you are sure to have morale problems. Your best employees will eventually question your leadership if you don’t hold everyone accountable to the same standards. Personal Challenges Have you ever had a star employee who has performed at high levels, but suddenly seemed indifferent to his job and his coworkers? This employee may be going through personal or health issues. Maybe she is burned out between obligations at work and home. It’s best not to assume anything. Again, sit down with this person. Find out what’s going on. Think about this: are you approachable enough that your employees feel comfortable about telling you what is going on in their lives? While it’s hard to ignore employees who are underperforming, not recognizing those who are performing at consistently high levels daily can damage overall morale. Failing to recognize your best people will eventually demotivate them, leading to a reduction in their performance. Creating a shop environment with high performers takes a team concept with strong leadership. If you have employees not performing up to expectations, you need to ask yourself a few things: Are you doing all you can to establish those expectations that everyone must follow? Are you providing the right training for everyone? Are you having one-on-one employee meetings where you learn about your employee’s career goals? It’s also important to realize that no two people are alike. Everyone has different needs and wants, and no strategy works for everyone. Going the extra mile to know your employees will send the strongest message of all by communicating that you recognize them as individuals, not just workers. One thing worth mentioning: There will come a time when no matter what you do, there will be an employee who will not perform at the level you need. In this case, you’ll have to decide whether to tolerate or terminate. From my experience, to terminate for the sake of the team, and for the individual, may be the best choice. Let me leave you with this: Expecting high performance from others starts with you. Are you reaching your potential? Are you striving to improve and set high expectations for yourself? What you expect from others you should expect from yourself … and more.Fri, 03 Nov 2023 11:12:05 +0000https://www.autoshopowner.com/articles/automotiveindustry/how-to-setup-a-products-and-services-list-for-auto-shops-r540/Effectively managing your products and services list is essential for auto shops. Not only does this simplify and streamline your invoicing process, but it also ensures that your financial records are accurate and organized. In this blog post, we’re breaking down a simple and practical approach to setting up a products and services list for auto shops that maximizes your overall efficiency. The Common Pitfall of Auto Shop Products and Services Lists In our work with auto shops, we often see a common pitfall in their products and services lists. The mistake they make is creating an overly extensive and long products and services list. This happens when auto shop owners add a new product or service to their list each time they make a sale. This leads to a confusing list that’s a million miles long. However, you can avoid this pitfall by streamlining your products and services and using descriptions effectively. How to Streamline Your Products and Services List Instead of creating a new product or service for each transaction in your auto shop, consider setting up a small handful of products and services and use the description to enter specific part numbers or details on the service provided. For example, set up a “Parts Service” item which is linked to the “Parts Income” on the chart of accounts. Then, each time a parts sale is made on an invoice, put the part number in the description with the correct price. Here are a few key categories that we recommend you include on your products and services list. LABOR This category covers all labor charges for various types of automotive work, such as diagnostic labor, repair labor, or maintenance labor. PARTS This is the category where it’s important to create a “Parts Service” item linked to the “Parts Income” account on your chart of accounts to avoid a long and confusing parts and services list. Whenever a part is sold, enter the part number and details in the description along with the current price. DISCOUNTS/REFUNDS This category can be used to track any discounts or refunds that are offered to customers. This is important to track separately in order to make adjustments as needed. SUBLET If your auto shop occasionally subcontracts out work to other service providers, this is the category you’ll use to record the costs of these sublet services. TIRE Having a specific tire category for tire sales, installation, and other related services is a great way to keep these invoices separate. By having a streamlined products and services list, you can ensure your list is easy to navigate, which saves you time and reduces the risk of errors. You’ll also make financial reporting more accurate by using descriptions and properly documenting each transaction. Plus, it will make invoicing and filing receipts more efficient and give you financial clarity to help you make informed business decisions.Wed, 18 Oct 2023 16:19:00 +0000https://www.autoshopowner.com/articles/automotiveindustry/6-common-financial-statement-issues-in-auto-shops-and-how-to-fix-them-r538/As an auto shop owner, one of the most important aspects of managing your business and ensuring it is profitable is effectively organizing and analyzing financial statements in order to make sound decisions for your shop and employees. As an accountant for auto shop owners, I often see financial statement issues arise that cause frustration, overwhelm, and discrepancies in a shop’s finances. In this blog post, I’m breaking down 6 of the most common issues with auto shop financial statements and offering quick tips on how to fix them. Financial Statement Issues In Auto Shops Not Understanding Your Financials The first issue I see with financial statements is auto shop owners simply not understanding their financial statements. They don’t know what they’re looking at, what the numbers mean, or how to navigate QuickBooks. This can make it really hard to make sound financial decisions if you don’t know how to use them to increase profits and make sound financial decisions. Solution: The solution to this issue is to set your financial statements up in a way that you can easily access, organize, and understand them. We recommend using QuickBooks for all of your financial statements, as this makes it easy to organize and analyze them. Shop Management Software Doesn’t Match QuickBooks The next common financial statement issue is having discrepancies between your Shop Management System (SMS) and your accounting software, such as QuickBooks. This can lead to a lot of confusion and inaccurate financial reporting. Your SMS may offer one figure, but what QuickBooks shows is the most accurate financial recording. Solution: The solution to this issue is to make being consistent in your financial reporting a priority. Calculate and record your financial data in the same way each month, at the same time of the month. Err on the side of being conservative with your figures to ensure your shop remains profitable and your financial statements reflect the actual performance of your shop as accurately as possible. Parts and Labor Income Are Not Split Out Failing to keep parts and labor income separate in your financial statements is another big issue, which makes it difficult to see where your actual revenue is coming from. With labor, there are so many factors to consider, such as employee wages, paid time off, benefits, etc, so it’s important to keep these aspects separate. Solution: The solution for this financial statement issue is to organize your income into separate categories for parts and labor. This will give you clarity in your finances and make it easier to analyze how profitable each aspect of your business is. This will help you make more informed decisions for your business. Parts and Labor Cost Of Goods Sold Are Not Split Out Similar to the last problem, if you fail to split out parts and labor costs of goods sold, you can create discrepancies in your gross profit margin. This is a key indicator of the overall financial health of your business, so it’s important that it is as accurate as possible. It’s important to note that technician pay should be classified as a labor cost of goods sold for the most accurate financial reporting. Solution: When setting up your accounting software, make sure to create a clear separation between parts and labor costs of goods sold. This will help you see the profitability of each side of your auto shop, allowing you to lean into the revenue streams that bring in the most money for your shop. Be sure to classify technician pay as a labor cost of goods sold. Not Tracking Warranty Work Warranty work is where a lot of financial statement issues arise. When you are looking at your financial statements, you must account for warranty work, otherwise, your income will look skewed as well as your expenses. Solution: To ensure warranty work is classified and tracked properly, create a simple system to track this work and any transactions related to warranties. This will keep your financial statements accurate. Misclassifying Transactions The last common financial statement issue in auto shops is misclassifying transactions. When you set up your QuickBooks, do so in a way that allows you to easily classify each transaction properly right away. This is an issue with a simple fix, but it can drastically skew your financial statements. Solution: After setting your QuickBooks up in a way that works for you to keep everything properly classified, make sure to regularly review your transactions to verify they’re accurately classified. This will help you catch any outliers or misrepresentations before it becomes a huge issue. All in all, by knowing what financial statement issues to look out for in your auto shop business, you can ensure you are set up for success and have your QuickBooks laid out in a way that works for you, that makes it easy for you to manage and understand.Wed, 06 Sep 2023 13:58:00 +0000https://www.autoshopowner.com/articles/automotiveindustry/understanding-the-differences-between-employees-and-contractors-what-you-need-to-know-r536/As a business owner, hiring the right people to work for you and serve your customers is a critical aspect of running a successful company. As you look to grow your team, there are two different categories of workers to be aware of: employees and contractors. Both of these types of workers serve essential roles, but it's vital to understand the differences between employees and contractors, as there are different legal compliances, tax obligations, and nuances to both. In this blog post, we’re diving into the key differences between employees vs contractors so you can make the best, most informed hiring decisions for your business. Key Differences Between Employees and Contractors Definition and Role Clarity The most fundamental difference between employees and contractors is their relationship with your business. Employees are individuals who work under your direct control and management, performing tasks assigned by you that are integral to your daily operations. On the other hand, contractors are external workers or individuals who are hired to complete specific projects or provide specialized services, working independently and autonomously from the business. Work Schedule and Degree of Control The degree of control that a business has over its workers is another defining aspect between employees vs contractors. Employee-employer relationships typically involve a higher degree of control and direction from the employer. As an employer, you dictate an employee's work schedule, the tasks they perform, and how they accomplish them. Contractors differ because they generally have more independence and control over how they complete their assignments, when they work, and where they work. Ownership of Tools The ownership of necessary tools needed to complete a job is another distinguishing factor between an employee vs contractor. An employee will be supplied with the necessary items, tools, and softwares necessary to complete their job. A contractor must supply their own tools and softwares, as they are likely used for more than one client. Tax Implications There are vastly different tax implications when hiring employees vs contractors, and understanding these is crucial. When you hire an employee, you are responsible for withholding and remitting income taxes and Social Security from their wages. Hiring contractors is different in the tax sense because they are considered self-employed and are responsible for their own taxes. As the employer, you don’t withhold taxes for contractors, but instead, they summarize their earnings on a Form 1099 at the end of the year. Employment Benefits As a business owner hiring employees, you may be required to provide employee benefits, such as health insurance, retirement plans, paid time off, and other benefits, depending on your company policies and legal requirements. Since contractors are self-employed, they do not receive these benefits from your business. Long-Term Commitment and Dependence Hiring an employee for your business implies there is a more long-term commitment with the expectation of ongoing work. Employees are likely dependent upon the business for their income and benefits. With contractors, these commitments may be more short-term and have a defined scope and timeline. Of course, contractor contracts can be renewed or terminated depending on the business’s needs or the contractor’s desires. Contractors likely have a roster of clients, so they are less reliant on one single client or business for their income. Ensuring Legal Compliance Classifying employees vs contractors correctly is critical for legal compliance. Misclassifying employees as contractors and vice versa can lead to an array of legal issues and expensive penalties. Stay up-to-date on the specific worker criteria set out by the IRS, Department of Labor, or other state authorities in order to ensure you are differentiating the two and classifying your workers properly. Knowing the differences between employees and contractors is vital for managing your team effectively and ensuring compliance with tax and labor laws. As you expand your business and hire new team members, take the time to assess the nature of the work and the relationship with the individual to make the appropriate classification. Understanding these differences is key for making informed financial decisions.Tue, 22 Aug 2023 16:03:00 +0000https://www.autoshopowner.com/articles/automotive-management/top-auto-repair-shop-financial-mistakes-to-avoid-r535/Running an auto repair shop is a rewarding career and an integral part of a community. However, it also comes with its fair share of financial challenges. As an auto shop owner, you must understand the importance of implementing the necessary systems and processes to keep your business profitable and sustainable long-term. In this blog post, we’re uncovering a few of the most common auto repair shop financial mistakes to avoid so you can stay successful and improve your bottom line. Top Auto Repair Shop Financial Mistakes To Avoid Neglecting Proper Inventory Management Inventory is one of the most significant expenses that an auto repair shop has. Failing to manage your inventory efficiently can lead to issues such as overstocking, which ties up valuable capital, or understocking, which leads to a loss in revenue and dissatisfied customers. In order to avoid this financial mistake, implement a robust inventory management system that tracks parts usage, orders, and replenishment schedules. This will help you find the right balance and optimize your cash flow. Ignoring Preventative Equipment Maintenance Another common auto repair shop financial mistake to avoid is not putting the proper preventative equipment maintenance procedures in place. An auto repair shop relies heavily on specialized equipment to deliver quality services to its customers. Neglecting to maintain this equipment regularly can lead to expensive breakdowns, emergency repairs, and force you to cancel customer appointments (which also leads to a loss of revenue). To avoid this, create a maintenance schedule for all tools and machines, ensuring they remain in excellent working condition, reducing unexpected expenses, maintaining safety, and improving efficiency. Overlooking Employee Training and Development Skilled and well-trained auto repair shop technicians are the key to running a successful shop. They are the ones doing the daily manual labor, therefore, you should invest in continuous training and development for your staff to help them improve their skills, enhance customer service, and reduce the likelihood of errors or costly mistakes. Incentivize your team to seek certifications and stay up-to-date with the latest advancements in automotive technology. An auto shop that values innovation and constant growth will see the benefits both in customer satisfaction and in their bottom line. Inadequate Budgeting and Financial Planning Many auto repair shop owners are great at the actual manual work and labor involved in running a repair business, but when it comes to creating a comprehensive budget and financial plan, they’re not as skilled or confident. Without a clear financial roadmap, it’s challenging to track expenses, identify areas where you can cut costs, or allocate resources effectively. To ensure your business is running like a well-oiled machine financially, develop a detailed budget that takes into account all overhead costs, labor expenses, marketing efforts, and savings for future investments. Ignoring Marketing and Customer Relationship Management While marketing is an ever-changing field, it's so important to embrace modern marketing technologies, such as digital advertising, social media, and targeted promotions in order to grow. Word-of-mouth marketing is great, but it should not be your sole reliance. Additionally, you must prioritize customer relationship management by collecting feedback, addressing concerns promptly, and offering loyalty programs to retain existing customers and attract new ones. Not Complying with Tax Obligations Finally, the last auto repair shop financial mistake to avoid is not complying with tax obligations. Tax regulations for businesses, including auto repair shops, can be complex and ever-changing. Failing to comply with tax obligations can lead to penalties, hefty fees, and legal issues. To avoid this mistake and ensure you are fulfilling your tax obligations properly, consider hiring an accountant or tax professional who understands the automotive industry to help you navigate tax requirements and maximize deductions.Wed, 09 Aug 2023 14:13:00 +0000https://www.autoshopowner.com/articles/automotiveindustry/extension-of-the-irs-lookback-period-what-you-need-to-know-r532/It’s been 3 years since the onset of the global Covid-19 pandemic, and we are still feeling the side effects when it comes to accounting, taxes, and tax refunds. In both 2020 and 2021, the IRS issued notices under the Tax Code, giving them the authority to postpone deadlines and due dates related to filing tax returns due to the federally declared disaster. However, these notices did not pertain to the IRS lookback period for refund claims filed after April 15th. Therefore, many taxpayers who file yearly after April 15th will not be able to claim a refund as it falls outside of the lookback period. Now, in 2023, a new notice has been issued by the IRS, extending the lookback period for refund claims. Here is a rundown of everything you need to know about this IRS extension. What is a Lookback Period First off, it’s important to understand exactly what the IRS lookback period for refund claims is. In general, a taxpayer must claim a refund on their taxes within 3 years from the date the related tax return was filed or 2 years from the date that the tax regarding the claim was paid. This IRS lookback rule allows taxpayers to request a refund in amounts paid within the lookback period. The Extended IRS Lookback Period Since the IRS failed to extend the lookback period in 2020 and 2021, many taxpayers who filed after April 15th have been left unhappy and without an option to request refund claims on those payments. In an effort to remedy this problem, the IRS has issued a new notice regarding the lookback period, Notice 2023-21. This notice disregards the time periods from April 15, 2020 to July 15, 2020 (2019 tax returns) as well as from April 15, 2021 to May 17, 2021 (2020 tax returns), when determining the start of the lookback period. This notice comes in an effort to realign the lookback periods with the formerly postponed due dates for filing tax returns due to the pandemic. What Does the Extended IRS Lookback Period Mean for Taxpayers? While the IRS’s extended lookback period is a positive move for taxpayers, it does not fully fix the problem created 3 years ago. This should be taken as an opportunity to look deeper into tax law and how we can create a permanent solution and prevent this type of misalignment in the event that future disaster filing postponements are made. People are already weary of the IRS, filing taxes, and making refund claims, and this situation definitely does not help their confidence. It is our hope that necessary changes are made to ensure that all taxpayers have the opportunity to claim credits or refunds moving forward without being denied. All in all, taxes and dealing with the IRS and lookback periods can be stressful, but the best way to ensure your tax filing and refund claim experience is as positive as possible is to keep your bookkeeping and financials up to date and organized so you always have what you need and can file on time. If you need help getting your bookkeeping and finances organized and ready for tax season, I’m happy to help with our bookkeeping and financial services. Feel free to browse our services and book a free consultation call with us today!Tue, 11 Apr 2023 16:30:00 +0000https://www.autoshopowner.com/articles/automotiveindustry/why-we-do-bookkeeping-r531/Have you ever walked into a room and stopped because you couldn’t remember what you were trying to do? Forgetting is easy. Especially when it’s something that we don’t actively engage with on a regular basis. When it comes to the reasons for what we do and the decisions we make as a business, remembering the “why” behind our actions is important. How It Started ThreeRivers Bookkeeping started because I wanted to help small automotive businesses overcome a challenge I observed while working with them. I started my career working with mechanics and automotive specialists in a related industry, but I realized that my passion was for helping those small businesses in a different way. Managing Bookkeeping’s Challenges Bookkeeping is boring and tedious. Keeping everything properly organized takes so much time, effort, and specialized knowledge that everyday business owners can’t easily handle it. And errors in bookkeeping, which are quite common, can financially ruin businesses. Errors can make it harder to budget correctly. But worse is the damage caused by errors that impact taxes. My goal in creating Three Rivers Bookkeeping was to help remove bookkeeping as an obstacle for small businesses. Even as I am coming up with new services (coming soon), my goal is to help businesses eliminate obstacles and run their businesses more efficiently and effectively. Build Wealth Through Business How much money do you want to make? In other words, what do you want to do outside of business? This is a question we ask our clients when we start working with them. What you want to do with your time, will require a specific amount of money. And in order to make the amount of money you want, your business will need to make a certain amount of money as well. While there are many people who work on books and do bookkeeping, the key difference between them and Three Rivers is our desire to help our clients build wealth through their businesses.Tue, 04 Apr 2023 18:41:22 +0000https://www.autoshopowner.com/articles/joe-marconis-tips-and-articles/quiet-quitting-new-phrase-old-problem-featured-in-ratchet-and-wrench-magazine-r530/Employees today will disengage if they don’t feel valued. by Joe Marconi: Quiet Quitting: New Phrase, Old Problem - Featured in Ratchet and Wrench Magazine Some people go to work each day with great enthusiasm and believe they can change the world. But then, others anticipate each workday with feelings of despair. These employees do the bare minimum; just enough to keep their jobs and go unnoticed. They are called quiet quitters. While quiet quitting may be the latest catchphrase, it's not a new workplace disorder. We've called them disgruntled, disengaged and even toxic in the past. But who's responsible for this behavior? Is it the employee? Or is there a deeper problem brewing in the workplace? Work has Evolved As a young technician in the mid-1970s, the shop owner was typically at the top of the pinnacle. It was common back then for a boss to run his company with the mindset, "my way or the highway." Was it wrong? Perhaps. Thinking back, I don't think we clearly understood or appreciated the role we played in the workplace or how we fit into the company's structure. We accepted things the way they were, unlike employees today. I also believe we felt we couldn't change how things were. Today, it's a lot different. There has been a shift in the workplace. Societal changes, the internet and social media have changed our exposure and heightened our awareness of the world and the issues that confront us daily. Today, employees of every generation believe they should have a voice in the company's decisions and direction. It's important that their opinions count and that their job role has a purpose. Of course, earning a decent living is top of mind, but as always, not the prime motivator. At the top of what's most important is the workplace environment and the employee experience. When employees lack the experience they crave, they become disengaged, leading to what we call quiet quitting. Employees Want Accountable Leaders Lack of trust in leadership is another factor in quiet quitting. Shop owners and managers must communicate what their employees can expect from management and not only what management expects from them. Consistency in the message and following through on promises contribute to workplace morale. After all, if you can't trust the message, you will not trust the messenger. Some people will excel in any work environment. However, they are the exception, not the rule. If you want a team of employees where everyone is pulling in the right direction, you should consider the needs and opinions of your employees. If you are concerned that understanding your employee's point of view and acting on it is giving up control of your company, don't be. Earlier, I referred to shop owners from years back. Most of them had a good business but not a great business. The reason was that they were the business. Growth was difficult because it was dependent mainly on their abilities and talents. This one fact alone causes a business to plateau. However, when a business combines different points of view and strategies from the team, greater growth is possible. Start Within Lastly, there will always be employees who won't be happy no matter what you do. If you are confident that you have done all you can to help a quiet quitter, the only hope at that point is for the employee to look within themselves, which may be difficult for most people. Instead, focus more on what you can do. Look within yourself to ensure you are doing everything possible to create an amazing employee experience. Your goal must be to create happy employees. We've all heard the expression, "happy employees create happy customers." Well, they create happy employers, too.Thu, 30 Mar 2023 15:47:44 +0000https://www.autoshopowner.com/articles/automotiveindustry/tricks-for-tax-season-r529/Taxes are annoying. They cost your business a lot of money to pay. And then you have to spend a lot of time gathering all the proper documentation. And don’t forget to keep it organized. That’s where I have a couple of tricks that I recommend for my clients that I would like to share with you. Use a Receipt Manager A receipt management system will allow you to collect and organize your receipts digitally. You won’t have to worry about losing the receipts or not being able to access them when you need them. There are two types of receipt management softwares that I recommend depending on your situation and business needs. While both of these apps have a recurring membership structure, with your financial security at stake, it’s better to get something good that you have to pay for. Dext Dext’s primary focus is the ability to snap pictures of your financial documents and receipts while allowing you to split and itemize those receipts. It also has more features that are available at higher tiers of memberships. HubDoc Hubdoc does most of the same things as Dext but can’t itemize receipts. It is less expensive and has a different approach to organization. Whichever of these two you choose, I recommend starting with a free trial and seeing which one is the right fit for your business. Track Mileage Digitally Tracking and calculating mileage can be tricky. But you don’t have to do it manually. And with a good software you won’t have to stress about it at all. TripLog TripLog has a few key features which make tracking mileage easier. The most important feature is their compliance with tax codes. After that, they offer tools that can track your trips automatically, and help you classify your trips easily. And they offer good packages for either large businesses or individuals. In Conclusion There are plenty of other softwares that can help you avoid wasting time with tracking and organizing your documents for tax season. And using them will not only help you feel less stressed when it comes time to visit your tax preparer. They will make your daily management of your business easier too. Don’t miss out on using tech to set your business up for success.Wed, 01 Mar 2023 15:57:29 +0000https://www.autoshopowner.com/articles/automotiveindustry/facing-your-financial-fears-r528/I’m not going to sugarcoat things. Times are hard. And they aren’t going to get any easier. One of the problems that makes hard times worse is fear. Fear of the future Fear of financial issues Fear of a collapsed economy We could spend all day writing out lists of the things we are afraid of, but we don’t have time to be that thorough. There are however a few key fears when it comes to your business finances that I believe need to be faced and addressed. Losing Savings When your money reserves start to dip, it’s easy to feel the pressure. Pressure turns into stress which turns into sleepless nights and uncomfortable discussions about money. Inflation is probably the biggest drain you will face in your finances. But that doesn’t mean your situation is hopeless. You can slow or stop the losses by eliminating redundant purchases and waste. Unused subscriptions for things such as streaming services are one of the largest sources of wasted money (and they’re easy to find and fix). Losing Work As business owners, spending money is less scary when you have enough work coming in to pay the bills. When work slows down, what you need is a strategy to boost your sales. Sometimes you need to start or increase your marketing. Other times you may need to seek help from a business coach to help you find where your business is not reaching its potential. Slow downs are unavoidable, but there are ways to handle them. Losing Investments The stock market is not fun to watch. Your money is riding a roller coaster, but you still feel your heart drop when the market turns down. The good news is that investing is a long-term game. If you miss the best days on the market, you will miss out on a lot of money. That’s not to say that every strategy works for every person. And you should seek out a financial advisor to help you make the best decisions. But just because the market is down today, doesn’t mean that the market will be down forever. Living Boldly Once you have recognized and faced your fears, you can start to address the solutions. Most companies that fail to grow or even survive, fail because they can’t or won’t face their fears. You can’t solve a problem you aren’t willing to look at. Sometimes you need help to get through the challenge of facing your fears, but in the end it will be worth it. If you don’t know how to address your financial fears in your business, I would be happy to speak with you and give you some direction.Wed, 21 Dec 2022 12:36:57 +0000https://www.autoshopowner.com/articles/automotiveindustry/your-business-finances-in-2023-r527/I don’t have a crystal ball. And I can’t predict the future. But there are some things I do know about what is coming in 2023 based on the current direction of our economy. And none of it looks pretty. Continued Inflation Inflation has been at an all time high for the past year and it’s not going to suddenly go down. Thanks to government spending and the printing of money to pay for that spending, inflation has spiked. And normal inflation which comes from increasing costs of goods and services is still a factor. All that to say, inflation is going to continue to impact the economy and business finances well into 2023. Less Disposable Income With inflation and increased cost of living comes a decrease in disposable income. A factor we are beginning to see, even now, is the reduction of unnecessary spending in low income households. While it starts by affecting low income households, it will begin to affect middle class households very soon. Many local businesses depend on people being willing and able to spend money on non-essential items. More IRS Involvement Last year saw the largest increase to the IRS in decades. The number of agents that have been added is a sign of increased focus on small businesses and increased audits. Expect to pay more in taxes or to be stuck dealing with surprise audits as the government attempts to crack down on errors in filing and those who evade payment. Preparation is Essential Local businesses fail first. When the economy suffers, the mom and pop style stores will bear the brunt of the problems as they don’t have the resources to spread out the losses. Survival requires preparation. You have to start making decisions now if you don’t want to get caught off guard by increased financial hardships.That’s where a review of your current financial situation can be extremely helpful. If you want to be prepared, I would be happy to sit down with you and discuss some solutions. Just set up a no-obligation appointment to get started!Tue, 20 Dec 2022 15:36:00 +0000https://www.autoshopowner.com/articles/automotiveindustry/lang-marketing-reports-shrinking-repair-shop-population-r526/Wed, 23 Nov 2022 16:03:11 +0000https://www.autoshopowner.com/articles/automotiveindustry/stop-overpaying-for-tires-r525/Whether you only occasionally buy tires for your business or find yourself constantly needing to replace one, two or an entire set, there is a way to start saving money immediately. Champtires has 30,000+ tires in stock at any given time - in nearly every brand, size and tread depth - at the lowest prices. Free shipping to the continental U.S. is included on every order. Auto businesses can join an exclusive program to save even more. Why Buy Used Tires? While Champtires does sell new tires, high quality used tires are our specialty. Buying used tires is: Safe. When bought from a reputable tire shop, like Champtires. We’ve been in business since 2009, and every tire that enters our warehouse is inspected and air tested. Environmentally friendly. Instead of the used tires ending up in a landfill, you will be reusing a premium, recycled product. Much more affordable. Even if you just need to replace one tire, the cost of rubber has increased dramatically and has caused the price of new tires to skyrocket. Why Trust Champtires? Since 2009, Champtires has specialized in selling new and high-quality used tires to drivers across the U.S. Every tire that enters our warehouse is inspected and tested, and we offer a 14-day satisfaction guarantee. How To Save Even More on Every Order Auto businesses are invited to sign up as a Champtires business partner. This gives you a 10% discount on each order placed through Champtires.com and access to other promotions. Learn more about the B2B Program. Shop our inventory.Wed, 11 Aug 2021 13:38:00 +0000https://www.autoshopowner.com/articles/joe-marconis-tips-and-articles/business-success-is-determined-by-people-not-process-r523/When I look back at my 40-years as a shop owner, there is one thing that stands out among everything else: It’s the people we surround ourselves with that will have the biggest influence in determining our success. Think about it, even the greatest NFL coach will never win a Super Bowl without great players. I have worked with a lot of employees through the years, including technicians at all skill levels, bookkeepers, service advisors, managers, and support staff. I can tell you with 100 percent conviction that the years that were the most successful were the ones that I had assembled the best teams. Now, I am not just defining success by profit alone. These were also the years that were the most fun, with less stress and the years that we made the biggest positive impact with our customers and the community. Let’s talk about production first. Highly motivated, skilled technicians with the right attitude produce more. They also get paid more, and they should. The right team of techs will average higher labor hours. I learned many years ago, it’s not the hourly rate you pay a tech that matters, as much as the hourly labor dollars produced by that tech. Next up are your service advisors. Here is where you can make or break your company. The service advisor is the face of the company. They represent you, your company and everything you do. The best brake job in the world means nothing if the service advisor doesn’t deliver a world-class experience that gives your customers a compelling reason to return. The long-term damage from an incompetent service advisor is hard to recover from. For the most part, you don’t run a transactional business. Your company relies on strong relationships and a strong culture. There isn’t a big-box brand name over your bays. It’s your name. And that means service advisors need to go above and beyond to exceed your customer’s expectations. If not, you lose. For the success of any repair shop, I put great emphasis and responsibility on the owner when it comes to employee management. All too often, a poorly run, failing shop is the fault of bad leadership. The shop owner’s ability to lead and motivate is crucial with building a winning team and successful business. However, I have also learned that sometimes we have the wrong people. And no matter what you do or how you try to motivate and lead, there are some people that just don’t “get it.” If it’s not in someone to begin with, nothing you do will change that person. In today’s business world, you need a team of great players. You need to hire people that can produce quality jobs, with minimal comebacks, have the right attitude, self-motivated, willing to attend training and have the willingness to work in a united, team environment. You need to hire people that “get it.” With regard to your customers, your business hinges more on the customer experience than it does on the equipment you have or the brand of parts you use. Of course, the parts you purchase matter. Of course, your alignment machine matters. But none of that is as important as what the customer sees. The customer sees and judges you on her overall experience. Which is how she was greeted at the service counter, how she was spoken to during the sales process, the car delivery, and the experience driving away with a smudge-free steering wheel. Lastly, here’s something you need to accept as a business owner. There isn’t a process anyone can create that will make up for mishaps caused by employing the wrong people. You do need to have processes and policies in place. It’s how you build a smooth-running and efficient business. However, we don’t run a McDonalds or a Dunkin Donuts. We can’t make up for poor customer service with a process or with a point-of-sale computer terminal. The processes and policies you create will only work the way they were intended to when you have employees fully aligned with your culture and have the right attitude. You need to have the right people. There are many components of business. The financials, choosing the right vendors, training, equipment, and advertising are among them. The two most important components of your business are your employees and your customers. However, you have great control over who you hire. And we all know, great employees create great customers. Assemble the right people around you and the rest will fall into place. This story was originally published by Joe Marconi in Ratchet+Wrench on August 5th, 2020Sun, 28 Feb 2021 04:29:38 +0000