Autos are one of the heavy equipment businesses that require huge capital outlay. From the direct bulk purchase, import duties, inventory management, repair services to sales tracking, you would agree with me that this business is quite demanding and as such owners are advised to have a proper accounting system in place for effective management.
If you are looking for an accounting software to put in place, this implementation advice focuses on key points you need to know:
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Note: From the QuickBooks variations above, Premier is designed for companies that assemble car parts while Enterprise is designed for a multi-location business.
- Confirm that the software can track all vehicle purchases including cost, quantity ordered and relevant charges paid (import duty).
- The software should create room for relevant auto inventory transactions like automated invoicing and receipt as well as organise your inventory by brands.
- The software should also track all income earned from auto repair and maintenance services
- The software should also track all expenses incurred for a specified period.
- If you buy from foreign suppliers, the software should also track exchange rate movements, foreign transaction payment and do the relevant conversion which will be reported in your home country’s currency.
- The software should also capture your relevant bank transactions and reconcile major different (if any) at the end of the month.
- VAT deductions should also be accounted for and relevant account payable balances.
- Confirm that the software can generate profit or loss trend, sales made, expenses incurred, cash flow and statement of financial position for a specified period.
- Because you don’t want to just buy any model to avoid capital tie-down, the software should also report your top selling products for a specified period.
While this guide will help you choose the right software, you can also connect with us for implementation and support:
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