What accounting an auto service needs
An auto service both provides services and sells spare parts — meaning it keeps two different types of accounting in parallel, and confusion between them is the most common cause of problems during audits.
Which registration format fits
A small service with 1–2 lifts usually operates as a sole proprietorship, while larger service stations with several bays and hired mechanics operate as an LLC. If many of your clients are legal entities (companies with corporate fleets), it is worth planning in advance for non-cash payments and VAT.
What to keep in mind
Spare-parts inventory accounting is a separate task: without it, it is hard to tell what is actually in stock and what needs to be purchased for a specific order. Working with legal entities requires correctly drawn-up acts and invoices — without them the corporate client cannot deduct the expenses, and you risk losing such clients.
Common mistakes
- They keep no spare-parts inventory records, so some purchases get "lost" in the books
- They don't issue documents to legal entities on time and lose repeat orders from companies
- They mix revenue from services and from parts sales in one account line
Conclusion
Careful inventory accounting and properly drawn-up documents for legal entities directly affect whether corporate clients come back to you. We'll set up accounting so that it doesn't get in the way of work on the lifts.