![]() If you’re working with generic software, you probably have to make due with an assortment of spreadsheets and written notes to fill in the gaps.Īccurate invoices = better customer service and fewer financial frustrations Even if you have an existing business management software, you still have to set it up to suit your specific needs as an automotive repair shop. Your invoice software isn’t specific to your field.Conversely, if you use a shop management system that makes it easy for services advisors to auto-apply markups as well as track the results, you can grow your profit margins with clarity and ease. If you do not have a standard method for adding parts and labor markups to estimates and invoices, then your shop will have a difficult time locking in a healthy profit margin. ![]() Your shop might be making a profit, but it’s either inconsistent or low when compared to your profit goals. Streamlined invoicing reduces errors and cuts down on time from job completion to collecting payment. Incorrect invoices slow down the sales process and prevent you from collecting your money. Incorrect entries on invoices can be a major root cause of this problem. If you’re trying to chase customers down for payment and can’t collect your money in a timely fashion, you’ll eventually run into a situation where you have negative or stagnant cash flow. Your cash flow is negative or stagnant.No shop owner wants to be slapped with fines because of a typo. If your data entry isn’t standardized, reports will be incomplete or erroneous, which can impact your finances from inventory to taxes. Data is inaccurate and needs to be audited and cleaned up.Do you know what you have in stock right now? Will the parts be the same price if you have to order them? Do you need to go to the warehouse to check to see if it's in stock? Will you need to then go through extra steps to find the part and order it? If your invoice system is disconnected from your inventory tracking, it can be difficult to quickly answer any of these questions. Inventory tracking is disconnected from invoicing.When your approach to shop management isn’t centralized in one management system, it can mean bouncing back and forth between documents or softwares for hours. Writing estimates and invoices is time consuming.If you don’t consult with your customer before adding work to the invoice, you’ll not only have an angry customer but also an inaccurate invoice that you have to go back and revise. Not getting clear approval from customers for each job on the invoice.Every time a line item is left off an invoice, it’s money left on the table. It’s your responsibility as a service advisor or shop owner to collect the exact amount due at the point of sale. If you leave an item off an invoice and you try to collect it later, most customers will balk and may refuse to pay. If your contact list isn’t in order, sending out invoices or sending invoices to collections can become a mess. Whether you’re working with a new customer or one of your regulars, taking down information by hand and then typing it into a spreadsheet introduces the risk of misspelling names and emails or writing down the wrong information. Customer setup misses crucial contact info or gets duplicated.Signs that your team is struggling to keep up with invoices: If you aren’t using a single, comprehensive system, there’s a good chance details will be incorrectly copied or left out. The same holds true if you’re using multiple software programs to juggle records at your shop to put together information for invoices. Paper means lots of copies, transposition of information, and a high probability of making mistakes. If you’re still using pen and paper for your invoice system, you probably spend a lot of time reconciling records at the end of the day and may even have to stay late to put your books in order. Your shop’s ability to grow, make a profit, and succeed hinges on clear and accurate invoicing.
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