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Have you submitted your taxes yet, or are you struggling to get your records in order and submit everything on time? Wherever you are in your tax prep process, you need to pull together a plan and act fast or you may have to pay penalties.

Sometimes, even hearing the word taxes can be scary, but unfortunately, taxes are one fear we don’t get to avoid indefinitely. Auto repair shop Tax Day is the same day as everyone else’s Tax Day, and things just get more complicated if you don’t file on time. The clock is running out on your time to file without an extension this year, and even filing for an extension comes with its own deadline.

But if you tackle the process with knowledge and empowerment, doing business taxes and sales tax on car repairs at the shop doesn’t have to be difficult.

Here are five tips that can help you have a better auto repair shop tax season.

Disclosure: the information in this article is not to be taken as formal tax or legal advice. Individual business circumstances vary, and you should always consult with a CPA and tax attorney.

Repair estimates are the foundation for your shop’s revenue.

How you estimate work and send those findings and estimates over to your customers will shape your shop’s profitability, your customer relationships, and how professional you come across to your customers.

Some shop owners might be tempted to use the free online car repair estimator tools to run their own estimates. But will this shortcut actually help your shop get to where you want it to be?

What Is an Auto Repair Estimate?

When customers come to your shop for repair work, they’re expecting a standardized process with an estimate for all the work your shop will be completing. Typically, as you'll know, this meant paper printouts or even manually, hand-written checklists.

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But paper leaves a lot to be desired. As shop management systems have shifted from pen and paper to digital, and more recently from older digital software to modern cloud-based solutions, shops have access to way better tools than ever before.

Your shop’s ability to grow, make a profit, and succeed hinges on clear and accurate invoicing.

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.

Paper means lots of copies, transposition of information, and a high probability of making mistakes. The same holds true if you’re using multiple software programs to juggle records at your shop to put together information for invoices. If you aren’t using a single, comprehensive system, there’s a good chance details will be incorrectly copied or left out.

The holidays are a special time of year when we make memories with the family, give thanks, and spread joy. However, with social distancing guidelines still in effect, this holiday season will look a little different. Because this year has been challenging for many people, it’s more important than ever to stay positive and spread cheer to past, current, and prospective customers.

Making people feel warm and fuzzy this holiday season will get them to remember you, leading to more business immediately or at some point in the future. And even if not every person you positively impact comes to your shop, it’s okay! You’re still paying it forward to your community, which bolsters your shop’s reputation and can lead to more referrals down the road.

Here are ten ways you can connect with guests this holiday season.

Digital vehicle inspections software is one of the best way to show your customer exactly what's wrong with their vehicle. Instead of an old-school paper approach, Digital Vehicle Inspections (DVIS) are a core component of your shop's workflow, and let technicians quickly highlight existing and potential future issues, with evidence!

If a technician notices that the brakes are okay now but will need to be repaired in about three months, they can note that in the DVI report, or even attach a picture for the customer to see.

Even better, because digital vehicle inspection software let you send pictures and videos, track declined repairs, and even let your shop text findings directly to customers, you can help customers feel comfortable that they're making the right decision in approving that costly repair they may have otherwise put off.

With the right DIV features creating such a modern, seamless experience, you'll be the first shop they think of next time they need something fixed!

Let’s face it, tracking inventory is tricky. It takes keen attention to detail, an ability to anticipate your shop’s needs, great timing, and some serious research skills—not to mention a lot of time on the phone or computer, away from the action of the shop.

Bottom line? Keeping track of inventory is a job that most service advisors and shop owners didn’t sign up for. While some shops have a shop foreman to help with inventory, even the best foreman still needs a solid tracking system.

But when a shop runs low on the right tools and parts, it can mean turning away customers when you could be building loyalty instead. Simply put, without up-to-date inventory records, your shop may have to pump the brakes and turn away customers or delay jobs.

If your team wants to stay ahead in the industry, you probably see inventory upkeep as a frequent task. And without a shop inventory software, you might also spend hours calculating purchases, tracking orders, checking wear and tear to tools, and rotating stock.

Everyone has their own way of conducting the inventory process, but in general, inventory methods fall into three major categories:

• Pen and paper
• Excel/spreadsheet/template
• Shop inventory software
  

If you’re still using pen and paper or a spreadsheet, it may be time to upgrade or at least supplement your inventory process.

Tekmetric, the leading Houston-based automotive repair technology company, has been recognized as a 2022 MOTOR Top 20 Award winner for its recent integration with RepairLink by OEConnection (OEC), a renowned technology provider for the aftersales industry.

The integration, selected by industry experts as well as public popular vote, allows shop owners to seamlessly order original equipment manufacturer (OEM) parts directly from the Tekmetric Shop Management System.

For over three decades, the annual MOTOR Top 20 Awards have recognized outstanding new industry solutions across the automotive industry, from the most innovative tool or equipment to creating the best customer experience.

Winners are selected by automotive professionals and experts who voted over a thirty-day open voting process from a selection of this year’s most valuable contributions to the industry.

“As a leading shop management system, our team at Tekmetric shares a mutual belief with our partners at OEC that we best support shop owners in all their business needs by providing modern and relevant solutions,” said Sunil Patel, Co-Founder and CEO of Tekmetric.

“We are honored and humbled to have the Tekmetric-RepairLink integration recognized by both our customers – shop owners – and our industry peers as one of this year’s most innovative solutions.”

With its combination of Tekmetric’s cloud-based capabilities and RepairLink’s parts ordering platform, the integration builds upon Tekmetric’s existing parts ordering offerings to streamline the process of ordering OEM parts for auto repair shops. Through the integration, shop owners can track orders or returns with real-time online updates, as well as address orders in one screen, transferring any quoted parts and VIN numbers automatically into Tekmetric.

“Vehicle sophistication is growing rapidly, and all signs point to even more advancements, meaning it’s absolutely necessary for repairers to have enhanced access to critical parts and information,” said Bonnie Coleman, OEC Director, Mechanical Retail.

“This is why OEC is thrilled to partner with Tekmetric, and that this integration has been recognized for the valuable contribution it offers to the industry.”

To learn more about the MOTOR Awards and view the 2022 Top 20 Awards, visit https://www.motor.com/top20awards-winners.‍

About Tekmetric

Tekmetric, a Houston-based auto repair technology company, offers a cloud-based platform that enables auto repair shop owners to enhance productivity and increase profitability through its streamlined workflow management processes.

Designed by a former shop owner, Tekmetric’s platform drives shop efficiency through real-time data, a customizable user interface and customer-centric communication tools.

Since its launch in 2016, Tekmetric has disrupted the industry with its robust fully-integrated system, developed with an emphasis on customer transparency and user collaboration.

For more information, visit www.tekmetric.com

About OEConnection Holdings LLC

OEConnection Holdings’ portfolio includes OEC, the leading parts ecommerce technology provider for OEM distribution networks, serving over 20 OEMs and 100,000 dealership and repair customers.

Providence Equity Partners is the majority stakeholder of OEConnection Holdings; Ford Motor Company and General Motors are minority stakeholders.

The company is headquartered in the greater Cleveland area at 4205 Highlander Parkway, Richfield, Ohio, 44286

Additional information is available at www.OEConnection.com.

However, it’s important to stay consistent in also attracting new customers rather than relying solely on the group of existing customers you build up as your shop expands its reputation for good repair work.

While walk-ins are certainly a thing, it isn’t the best bet to depend on them as your sole way of getting new customers. Instead, take proactive approaches to gain a steady stream of new customers coming through your doors.

Alex recently sat down with Ratchet + Wrench Radio to discuss a whitepaper she authored on how shop owners can identify inefficiencies in their shops. During the conversation, she discussed how shop owners can recognize these inefficiencies and fix them with shop management software.

Here are some of the highlights from the podcast.

When it comes to starting a business, you have a lot to consider.

How are you going to make sales?

Are your operations in order?

How will you approach legal, HR, and marketing?

But it’s important to not forget about one key part to getting your business off the ground: funding.

You’ll want to be well-versed in what to look for in a potential partnership whether you’re in the startup phase, the expansion phase, or even in a plateau phase.

By better preparing now, you’ll set your company up for future success.‍

Recently, Prasanth shared his thoughts about different kinds of funding with Texas CEO Magazine. You can read the full piece here, or check out some of the highlights below.

Determine The Right Equity Path For Your Business

The first step for any business owner should always consist of researching and selecting the right method of funding for your company. Once you’re confident in your company’s business model, your company’s current state, and any future aspirations for your company, you’ll want to determine the right equity path that can take your company where you want it to go.

1. Venture Capital

Venture capital is a more traditional route and is optimal for new entrepreneurs. If you have an idea for a potential business venture but aren’t sure exactly what to do with it just yet, venture capital could help you secure funding so that you can bring your ideas to fruition.

With venture capital, your partner will purchase a significant portion of the company, and in turn will offer support and guidance to nurture your company’s growth

2. Growth Equity

If your company has already excelled in the starting phases and needs another boost to continue expanding, you’ll want to consider growth equity—otherwise known as “rocket fuel.” Growth equity tends to be founder-centric and offers more autonomy and room to remain true to your company’s original core values and business model.

3. Private Equity

Companies that have reached the later stages of their business’ lifecycle may opt for private equity.

This route can be a good contender for companies that are at risk of going under due to lack of profits. Private equity can give your company the boost needed to prevent it from closing up shop.

Whoever you choose to partner with will take a large portion of your company’s ownership and will make significant changes to the company. However, the private equity route tends to yield bigger checks.

What Did Tekmetric Do For Funding?

Prasanth knows how important the right funding for your company is.

Prior to 2021, Tekmetric was in the startup and the small business stage, so the initial funding from friends and family was an avenue that worked out really well at the time

After 2021, Tekmetric started to expand exponentially. Tekmetric’s Co-CEOs and Co-Founders Prasanth and Sunil Patel realized that more growth could be possible if they changed from their personal network funding to the growth equity route.

Growth equity provided funding for additional initiatives, such as marketing, product research, and hiring. In turn, Tekmetric was able to pursue the vision that Prasanth and Sunil had outlined during the company’s beginning stage.

Find The Right Partner

You’ll want to be intentional about choosing any of your partnerships as a business owner, especially when it comes to finding the right funding partnerships.

The partner you decide to go with will help determine what your business’ tone and future will be like.

As you’re determining the right partnerships for you, ask yourself 5 questions:

• Is the partner aligned with my business goals?
• Do I trust this partner with my team and my business?
• What will my relationship with this partner look like?
• How much day-to-day involvement in my company does this partner expect?
• Does this partner provide a reasonable amount of funding to support my goals?

No matter what equity direction you take, you’ll want to find a partnership dynamic that works for you, your business, and your team. As you’re choosing the right partner, remain transparent about any goals and expectations you have in mind for your company.

You won’t want to choose a partner solely based on numbers. The partnership will be a long-term business relationship—a marriage of sorts—and you should treat the partnership with thoughtfulness and respect.

What Did Tekmetric Do For Funding Partnerships?

At Tekmetric, Prasanth and Sunil knew whichever partner they selected to provide funding would play a significant role in the company’s future, and would have a strong impact on Tekmetric’s overall tone, goals, and growth.

At the time Prasanth and Sunil started looking for partners, Tekmetric was a well-established name throughout the auto repair industry, so they wanted a partner that would work alongside them, not just someone who would give them money and stay at a distance.

Eventually, Tekmetric found the right partner—one who is not only sensitive to the company’s needs but also the needs of Tekmetric’s customers.

Remain True To Your Business Yourself

No matter the equity path you choose to go or the partnerships you choose to take, you’ll want to stay true to your business’ core values and who you are as a business owner.

Rather than cutting corners, you can opt for the best possible solutions.

Prasanth said it best: financial support and equity can be confusing, and it’s easy to get lost in the numbers and forget why you started your business in the first place. However, the right partner will make all the difference.

After all, if you are putting significant time and effort into your idea, your company, and your team, you should expect a partner who supports your continued success long into the future.

→ Check out our latest blog on 12 marketing strategies to help you bring in more customers, or learn how you can become the ultimate leader for your team

A special thanks to Texas CEO Magazine for providing space for Prasanth to share his knowledge.

He and Sunil Patel started Tekmetric in 2016, and today, it’s become the preferred auto tech software in the auto repair industry.

Prasanth’s success prompted Authority Magazine to contact him for an interview on the formula for scaling success.

Below are just a few excerpts of Prasanth’s interview with Ken Babcock (CEO of Tango), along with bonus content for any entrepreneur seeking to scale their business.

Scaling with People

Let’s look at each component.

The Right People.

First, you have to have the team that serves your company the best.

At Tekmetric, we learned this the hard way. We had a phenomenal idea — but our first team wasn’t comprised of exactly all the people we needed.

And that meant we failed in the first round. It was disappointing, but we learned a valuable lesson, and the next round, we hired people based on the talents we knew we needed. It was the right move, and it set us in the right direction toward success. In fact, many of the team members from this second group are still with us today.

Tekmetric’s People Today: The Best Support in the Industry

Today, Tekmetric has a growing team of people working in various departments, such as customer support, sales, product development, and human resources.

Walk into our Houston headquarters, and you’ll see people from all backgrounds catching up on their week, discussing the next product update, or talking about the future of our company over a cup of coffee.

A large portion of our team works remotely. We have employees across the United States, including: </p><ul>

• Cleveland, OH
• Washington, DC
• Denver, CO
• San Diego, CA

But no matter where our team members are, one of the big things they have in common is that they’re passionate about providing Tekmetric’s customers with the best experience and support possible.

Our support team in particular is easy to get in touch with.

Customers don’t have to spend hours listening to annoying “waiting” music on the phone or anxiously sitting in front of their computers for a response to a support ticket.

The Tekmetric support team acts to get questions answered quickly and any issues resolved fast.

After all, auto tech software needs to move at the pace of the auto repair industry—fast—and support is an important part of that process.

Sound like you would fit in? Join us!

Scaling with Direction

You also have to know the direction you’re going.

Having the idea is great; getting it right as you grow is vital. You may not have the details fully fleshed out, but you must know what you want to do and the tools you need to get there.

I’ve always said, if you have a goal in mind, and you don’t know how to get there, then you’re doing something right.

If you do know how to get there, you’re not thinking big enough. Think long and hard about what you want your business to look like.

Once you figure out those initial steps and orient yourself in the right direction, you can think ahead to challenges like growing and scaling.

Tekmetric’s Direction Today: Driving the Auto Repair Industry Into the Future

The Tekmetric team keeps a close eye on what’s happening in the auto repair industry so that we can stay one step ahead when it comes to driving the auto repair industry into the future.

For example, Tekmetric listened to its customers’ desires for a true two-way texting feature, which enables shops and their customers to communicate more seamlessly than ever before.

Tekmetric also frequently adds to its list of integrations with industry-leading tools so that shop owners can set up workflows that work best for them.

And Tekmetric listens to what shop owners, technicians, and service advisors are saying, taking their feedback and suggestions into account.

We know that we cannot do this on our own, and respect the contributions of people throughout the industry.

Businesses are buckling down and tightening their checkbooks in an effort to control expenses to avoid or reduce the effects of a potential recession.

But in the auto repair industry, there are unique opportunities that come with uncertainty in the market – and that’s more business opportunities.

As people across the country reduce their spending, they are more likely to repair vehicles than to replace them, offering auto repair shops the opportunity to actually increase business. With the right strategies, you may find that it’s entirely possible for your shop to not only survive an economic recession – but thrive and grow.