Client Background
A specialty auto repair shop specializing in classic car restorations and performance modifications struggled with disorganized financial records. The owner, a skilled mechanic, had little experience managing finances and needed professional bookkeeping to track profitability, manage expenses, and prepare for tax season. The client hired Development Theory to help with bookkeeping for an auto repair shop.
The Challenge
Unrecorded Transactions: Many purchases were paid in cash or through vendor accounts, leading to incomplete financial records.
No Job Costing System: The business couldn’t track profit margins per project, making pricing difficult.
Overdue Tax Filings: The owner had missed quarterly tax payments, leading to IRS penalties.
Inventory Management Issues: Parts and materials were not tracked properly, leading to overstocking and cash flow strain.
Our Approach
Transaction Reconstruction: Reviewed bank statements, invoices, and receipts to recreate missing financial records.
Job Costing Implementation: Introduced a system for tracking labor, parts, and overhead costs per job.
Inventory & Expense Management: Created a structured tracking system for materials and vendor payments.
Tax Preparation & Compliance: Caught up on overdue tax filings and implemented quarterly tax planning.
Owner Training: Provided basic bookkeeping training to help the owner maintain records moving forward.
The Solution
Established organized, accurate bookkeeping, eliminating financial confusion.
Implemented a job costing system, allowing the owner to track profit margins per project.
Filed back taxes and set up quarterly payments, avoiding future penalties.
Created an inventory tracking system, improving parts management and cash flow.
Results & Impact
Revenue tracking improved by 80%, leading to better pricing decisions.
Saved the business over $12,000 in tax penalties by catching up on filings.
Reduced inventory waste, freeing up $8,500 in working capital.
Owner gained confidence in financial management, making smarter business decisions.
Client Feedback
"I never realized how much money I was losing due to poor tracking. Now, I know exactly what’s going on financially, and I can focus on growing my business!"
Development Theory Can Help Business Owners Like You
Struggling to keep your books in order? Accurate bookkeeping is the foundation of a healthy business—it helps you track cash flow, manage expenses, and prepare for tax season without stress. At Development Theory, our Bookkeeping services ensure your financial records are organized, accurate, and up to date, so you can focus on growing your business instead of worrying about spreadsheets. Whether you need monthly reconciliations, financial reporting, or QuickBooks support, we’ve got you covered.
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