🚗Industry Template

Chart of Accounts for Automotive

A complete Chart of Accounts designed for auto repair shops, dealerships, and automotive service centers. Learn the best practices for tracking labor, parts sales, and sublet work.

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Recommended Account Structure

This template includes 30 accounts organized by category. Each account is designed for automotive businesses.

Assets

1000CheckingBank

Primary business banking account for deposits and expenses

1010SavingsBank

Reserve funds and emergency cash

1100Accounts ReceivableA/R

Track unpaid customer invoices

1200Parts InventoryOther Current Asset

Auto parts and supplies on hand

1210Core InventoryOther Current Asset

Core charges on replacement parts

1500Shop EquipmentFixed Asset

Lifts, diagnostic tools, shop equipment

1510Vehicles - Service FleetFixed Asset

Tow trucks, service vehicles

Liabilities

2000Accounts PayableA/P

Track bills owed to parts suppliers

2100Credit CardCredit Card

Business credit card balance

2200Customer DepositsOther Current Liability

Advance payments for repairs

2300Warranty ReservesOther Current Liability

Reserve for warranty work obligations

2400Payroll LiabilitiesOther Current Liability

Wages, taxes, benefits owed

Equity

3000Owner's EquityEquity

Owner's investment in the business

3100Retained EarningsEquity

Accumulated profits from prior years

3200Owner's DrawEquity

Distributions to owner (reduces equity)

Income

4000Labor RevenueIncome

Service and repair labor charges

4100Parts SalesIncome

Parts sold to customers

4200Sublet IncomeIncome

Markup on outsourced work (tires, glass, etc.)

4300Diagnostic FeesIncome

Vehicle diagnostic and inspection fees

4400Warranty ReimbursementsIncome

Reimbursements from manufacturers

Cost of Goods Sold

5000Parts CostCost of Goods Sold

Cost of parts sold to customers

5100Sublet CostsCost of Goods Sold

Cost of outsourced work

Expenses

6000Technician WagesExpense

Mechanic and technician labor costs

6100Shop SuppliesExpense

Rags, fluids, consumables

6200Equipment MaintenanceExpense

Repair and calibration of shop equipment

6300Waste DisposalExpense

Oil, coolant, and hazardous waste disposal

6400Uniforms & SafetyExpense

Uniforms, safety equipment, PPE

6500Insurance - Garage LiabilityExpense

Garage keepers and general liability

6600Rent - Shop SpaceExpense

Shop and bay rental

6700UtilitiesExpense

Electricity, water, phone, internet

Accounting Strategies for Automotive

Maximize the value of your Chart of Accounts with these proven strategies.

🔧

Track Parts Sales Separately

Separate parts revenue from labor revenue to calculate your markup on parts and identify which profit center is stronger. This helps optimize pricing and purchasing strategies.

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Monitor Sublet Work Carefully

Track sublet costs and income separately. Ensure you're marking up outsourced work (tires, glass, transmissions) enough to cover overhead and generate profit on work you don't perform in-house.

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Use Job Costing

Enable job costing in QuickBooks® to track labor hours, parts, and sublet costs per repair order. This reveals true profitability per job and helps identify unprofitable service types.

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Watch Technician Efficiency

Track actual labor hours vs. billable hours to measure technician efficiency. Low efficiency may indicate training needs or inadequate tooling.

Best Practices

Use inventory tracking for parts to avoid stockouts and optimize reorder points
Reconcile core inventory monthly to ensure you're collecting core charges properly
Track warranty work separately to ensure you're recovering costs from manufacturers
Consider using classes to track profitability by service type (brakes, oil changes, diagnostics)
Set up automatic categorization for recurring expenses like shop supplies and waste disposal

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