Legal Disclaimer: This article is written for informational purposes only and does not constitute professional financial advice. Please reference section179.org and a professional accountant for advice on financial planning and filing taxes.
As 2020 comes to an end, you might be thinking about all of this year's expenses and wondering what you might be able to write off on your taxes. You may even be considering whether or not to make a big purchase, weighing the tax deductions you could get if you bought it this year versus next.
Is it worth buying that new lift before the year ends? Or should you put it off until 2021?
What is Section 179?
Section 179 of the IRS tax code allows business owners to write off the entire cost of a piece of equipment, renovations, or other assets in the first year instead of writing off an asset a little bit at a time over a five, seven, fifteen, or thirty-nine year period. To give an example, if a shop owner buys a new tire machine, they could either write off the taxes over a seven-year period, or they can use Section 179 to get the entire deduction in the first year.
What Type of Costs Qualify for Section 179?
Tangible business property, including machinery and equipment
Leasehold improvements
Computer software*
*Is Tekmetric Eligible for Section 179?
Generally speaking, off-the-shelf computer software that has been purchased outright is eligible for Section 179. Because Tekmetric is a web-based software and does not make users sign a contract, it is not eligible for section 179, but it does qualify for a standard tax deduction.
What are Leasehold Improvements?
Leasehold improvements are any repairs or modifications that you make to your building or property, including adding a new roof, installing security or safety systems, and remodeling parts of your building without expanding the footprint. Without Section 179, leasehold improvements depreciate over 15 or 39 years, depending on what the improvements are. With Section 179, you can receive the entire deduction in the first year.
How Often Does Section 179 Change?
Section 179 is typically adjusted every several years. Most recently, Section 179 was adjusted in 2018 when the deduction limit was doubled and more types of purchases were made eligible. Section 179 may change again in the following years.
When Should You Use Section 179?
If you know that you’re going to pay taxes this year, and you have made a major qualifying purchase, then you may want to consider using Section 179 to save on your taxes and free up some cash flow for 2021.
If you financed a major purchase, you may want to consider how soon you plan on paying off that purchase and whether or not you would like to receive a tax deduction in the following years as you pay it off. For example, if you have a loan on a piece of equipment that you plan on paying over five or ten years, you may want to opt for the regular depreciated tax reduction so that you have money to offset those taxes in the following years.
Should You Make a Major Purchase Before the Year Ends to Use Section 179?
It’s not the wisest decision to buy something just to save money. It is true that Section 179, and tax benefits in general, are the best that they’ve been in years, but consider only making a major purchase if it is already in your plan and budget. If it is something that you already planned on buying in the next six months, then you may want to make the purchase before the end of the year to leverage Section 179’s tax deductions.
Talk to the Auto Repair Accounting Experts
Every situation is different. Take a look at what your tax rates are and ask yourself, "Is my income low enough this year where I'm actually reducing taxes at a pretty low rate? What do I think the tax rates are going to be in the future? Or will this benefit me more in the coming years when I think I'll be making more money?"
Talk to your accountant to form a game plan for all of this.
This article was written with the guidance of automotive repair industry CPA Hunt Demarest of Paar, Melis, & Associates, P.C.
Need help planning your taxes for 2020? Contact Paar, Melis, & Associates.
The checkered flag is in sight, moving to the last stretch of the race at a good pace! As Tekmetric kicked off Q3, we focused on two main priorities: streamlining the customer experience and enhancing our relationships within the auto repair industry. With a customer-obsessed approach, Tekmetric is committed to driving product innovation through these two avenues, as we continue to evolve and better serve you – our partner shops.
Streamlining the Customer Experience from Beginning to End
This quarter, we made it our goal to continue helping shops improve the customer experience from start to finish. The customer experience involves streamlining operations at every level, so the vehicle can be safely repaired and back on the road as soon as possible. From estimate to the final payment, our end goal is to help you be as efficient as possible.
As part of our efforts this quarter, we sought to identify and eliminate bottlenecks to enhance shop efficiency while meeting customers where they want to be. We also implemented updates that many of you, our partner shops, have recommended to keep Tekmetric relevant to the entire shop experience. Together, these updates combine to create a stronger shop management system that helps your shop run smoothly and ultimately supports growth over time:
Simpler Day-to-Day With Enhanced Data Integrations: With ALLDATAandTireFitment, service advisors can now get labor and tire data directly from these integrations within the Tekmetric platform.
Tire Purchasing Made Easy: With Tire Suite you can manage all tire operations directly from the platform including compliance, regulatory standard adherence, inventory management, and even purchasing via our integration with PartsTech.
Increased Transparency in Inspections: Through our integrations with Advance’s MotoVisuals, you can now more easily educate your customers with repair animations. iCustomer Comms Simplified: We added template messages and the ability to adjust text verbiage for estimate, inspection and invoice links, which limits redundancy and streamlines communication.
Increased Payment Flexibility With BNPL: Our partnership with Affirm allows shops to meet vehicle owners where they are with flexible payment plans for nearly any budget or repair need, including Buy Now, Pay Later (BNPL). Customers who introduce BNPL see a 3x increase in ARO.
Growing Relationships Within the Industry
As Tekmetric continues to streamline and enhance the customer experience, we are also focused on strengthening our relationships within the auto repair industry. As a customer-obsessed shop management system, we aim to support shops in providing the highest quality service to vehicle owners they can – and this wouldn’t be possible without valuable feedback and insights from you, our partner shops. This approach allows us to better understand the real challenges you face, so we can provide innovative solutions that help you accomplish your goals and succeed in a market where the consumer expects more from their repair shops.
You may have seen us at the Shop Hackers Conference in Murfreesboro, Tennessee, where Adam McInturff, VP of Sales and Phil Acree, Head of Payment Sales presented on our latest features and upcoming innovations. We also spoke to many of you about the trends you are seeing in the industry and how Tekmetric can support your needs – from hiring service writers to succession planning. We continued these conversations at ATE Spokane in Washington and ASCCA in California and gathered key insights as we look ahead to the end of 2024 and the beginning of a new year.
Thanks to you and your key feedback shared through these conversations, Tekmetric has been able to provide excellent service and innovative solutions throughout this quarter, resulting in recognition from the G2 Summer Awards in these categories: Overall Leader, Best Usability, Most Implementable and Momentum Leader. In addition, Tekmetric was named the best auto shop management software by G2. This recognition is a significant testament to the support of each of you, your teams and the valuable insights you provide.
Aspiring To Inspire with Thought Leadership
For Tekmetric, customer relationships aren’t confined to the walls of a conference room. We also aimed to share the knowledge through webinars and conversations with industry outlets that sparked important conversations about what’s changing in our industry.
With our webinars, our aim is to help you uncover actionable insights that you can apply to grow your shop. Some of these conversations included our webinar, “Innovate to Elevate,” led by John Phelps, Director of Channel and Partnerships, where he talked about transforming the customer journey with the end goal of streamlining operations and boosting customer satisfaction. Similarly in our payments webinar, Phil Acree, Head of Payments covered the current state of consumer financing and how shops can enhance the customer experience regarding the payment process.
We also shared this knowledge through key industry outlets, so you can share and discuss with your team, including:
Future proof your shop exit strategy. P.J. Leslie, Director of Business Development, along with Matthew Schwab, owner of Clutch Automotive, shared tips to prepare your shop for the future and retirement by building a well-crafted exit plan so exiting shop owners can confidently step into the next phase of their lives, knowing they have set up a legacy for their shop.
Strategic use of evergreen and real-time data. We also published an article with Vehicle Service Pros titled, “Using numbers to supercharge your shop’s performance, where we discussed how to use real-time and evergreen data to expand your shop.
As we leave an upbeat Q3, Tekmetric continues to keep its eye on the finish line for this year: helping shops enhance the customer experience through product innovation. We are very proud that our commitment to a two-way relationship with our customers has been the driving force behind every improvement and our collaborative approach with other leaders in the industry enables us to build a steady foundation for continuous innovation. We aim to continue measuring up as we enter the final quarter of 2024.
As a digital solution for auto repair shops, Tekmetric understands the importance of maintaining the highest security possible. Not only do we want to ensure that our customers receive full transparency anytime their vehicle is in the shop, but we also understand the value of keeping customer data protected and secure.
Last year, Tekmetric took our data security measures to the next level by achieving SOC 2 Type I compliance – and this year, we’ve stepped up our game to achieve SOC 2 Type II compliance. By earning both SOC 2 Type I and Type II compliances, we aim to continue promoting trust, transparency and security throughout the industry.
As a company that prioritizes innovative, reliable solutions, Tekmetric is proud to be among the first auto repair shop management solutions to receive SOC 2 Type I and II compliance. These certifications are awarded in accordance with the American Institute of Certified Public Accountants (AICPA) standards for SOC for Service Organizations (SSAE 18).
What is SOC 2 Type II Compliance?
SOC 2 Type II compliance is awarded when a system meets five principles:
Security. SOC 2 Type II protects the system against any unauthorized access, ensuring customer data is only accessible to approved parties.
Availability. This allows for stronger capabilities in monitoring performance, disaster recovery and handling security incidents. For example, Tekmetric has many data centers across the country to promote better disaster recovery. If one center goes down, the others have backup data available, so shops can access their information without missing a beat.
Processing Integrity. This quality revolves around quality assurance and process monitoring. The information you process through the system must be complete, authorized and accurate.
Confidentiality. We recognize that our partner shops obtain many types of personal data from vehicle owners. SOC 2 Type II compliance assures you and the vehicle owners that visit your shop that their data remains confidential within your system.
Privacy. Above all, we want to make sure data is specifically used for its intended purpose. People value dependability, and this certification helps keep your shop’s data private according to the standards specified by the American Institute of Certified Public Accountants (AICPA) and the Canadian Institute of Chartered Accountants (CICA).
What is SOC 2 Type I vs. Type II?
Type I: Describes how security and compliance controls are “designed” based on a specific point in time. For example as of March 31st, the organization conducts background checks and has job descriptions for roles and responsibilities.
Type II: Describes the “design and operating effectiveness over a period of time (audit period),” typically 6-12 months. This assessment shows the SOC 2 control implementation and operating effectiveness over that time period.
What Does It Mean for My Shop?
Security is a big concern in the modern auto repair industry – and with good reason. No one wants their data available to the whole world. With SOC 2 Type II compliance, we are able to keep any information that you put into Tekmetric secure, from your shop’s data to your customers’ information.
This happens without you needing to lift a finger. No need to track the last time you backed up your data or review who has access to your system! You can also assure your customers that their sensitive information is safe when they give it to you. They – and you – can sleep easier knowing the data is protected, and your shop management system meets top-tier industry standards to keep it that way.
Protecting Data in the Long-Term
At Tekmetric, we’re committed to driving positive change in the auto repair industry by promoting accessibility and transparency for both partner shops and the public. Achieving SOC 2 Type II compliance demonstrates that Tekmetric not only meets, but surpasses industry standards. We are committed to consistently measuring up on behalf of our customers, and data security is no exception to that rule.
By combining our leading shop management solution with top-class data security, we can better support you and your shop in protecting your data and your customers’ data – all without slowing your team down. Here’s to transparency, trust and reliability!
Ever wonder how you could make your auto repair shop website rank in Google for “Mechanic near me” or “Best auto repair shop”? Look no further, this guide will walk you through everything you need to know about search engine optimization for automotive repair shops.
Search engines play a large role in today’s buyer journey and the auto repair shop industry is no different. Shop owners are recognizing this and starting to emphasize SEO (search engine optimization) as part of their overall digital marketing strategy.
Auto Repair SEO 101
SEO for automotive repair shops is a marketing tactic designed to influence how your website ranks in Google and other search engines. When done correctly, SEO efforts can create more website traffic and ultimately, generate more customers for your auto repair shop.
However, search traffic is becoming more competitive and other shops are likely aiming for the same keywords as you are. Utilize this guide to see how you can improve your website traffic and search engine rankings for your auto shop.
Tek-Tip: Curious how you rank for important keywords? Simply open an incognito tab and search for keywords you want to rank for. Incognito tabs remove location and search history bias from your search.
Why is SEO important for Auto Repair Shops?
More traffic equals more customers
Search traffic is high-intent traffic which means that people who are searching for “mechanic near me” and similar queries are indicating that they are ready to make a decision. Social media and other traffic forms may bring in traffic but rarely are they ready to make a decision that day. Capturing more search traffic almost always leads to more conversions. Think about it, when you start looking for a service where do you start your search?
Brand awareness
Even if the customer is not ready to make a decision that day, being visible for relevant keywords is important (and free) brand awareness. Ranking well will help your shop stay top of mind for future automotive repair needs and build your online presence. Just like we remember a billboard or business logo weeks later, being visible in search engine results leads to better brand awareness and online visibility.
Cost effective
Unlike Google Ads, SEO efforts are free if you do them in-house. All you need to get started is this guide + a few YouTube videos and you can make a big difference in your website traffic and online conversions.
Local search
Search engines can use mobile device locations to help match customers with a shop that is nearby. Part of this guide will walk you through how you can indicate to Google where your auto repair shop is located and capitalize on local search traffic.
5 Steps to Improve your Rankings and Website Traffic
1. Quality content
Helpful content: Google loves fresh content and companies who regularly publish helpful content. Strategize what type of content will resonate with your audience and don’t be afraid to test new ideas. Consider removing or updating out-of-date content that is no longer relevant for your audience.
Content calendar: Creating a content calendar for your shop can help you strategize which topics you want to cover each month and who will be responsible for the project timeline.
2. On-page SEO
URLs: Did you know that Google uses the words in your url to help understand what your content is about? Avoid generic URLs like www.Yourshopname.com/blog/23trk and start using keyword-rich URLs like www.Yourshopname.com/blog/houston-tire-store. A simple optimization that can lead to better rankings.
Keyword research: Organic search is no longer about stuffing your content with every keyword you can find but keywords still play a part in how Google ranks content. Keywords are the terms searchers type into Google like “Tire shop near me” or “Brake service shop in Houston”. Other common auto repair keywords include “auto repair shop near me”, “best mechanic in (insert city)”, or "(insert service type) near me”.
You can use a free tool like Google Search Console (more info on tools later on) to explore which keywords you are ranking for and strategize how you can include those terms in your content/website. You will also want to research keywords that you do not currently rank for but want to in the future. Don’t forget to look at competitors and see what they are ranking for to help you locate your target keywords and form your overall strategy.
Internal linking: If you think of the internet as a spider web, each piece of content has internal and external links that help connect related content. These internal links help search engines crawl your website and find all the other content your website has to offer. Aim for at least one internal link in each article you write.
Meta Descriptions: As the name suggests, meta descriptions inform readers on what they can expect your content to cover. This is a great place to highlight keywords you think searchers might use to find your content.
Avoid click-bait strategies but try to make your meta description attractive and keyword dense. This will lead to better click-through-rates and better rankings. Aim to use 150 characters or less in your meta description so Google doesn’t cut it off.
Meta Titles: Think of a meta title as the headline or title tag for your content. This is a great place to showcase what your content offers and what it covers. You also want to feature your top priority keyword in the title to make sure Google (and users) know that it matches what they are searching for.
3. Technical SEO
Tek-Tip: Warning: this section is more technical and may require the assistance of a website professional. We recommend Shopgenie to help with all of your website/SEO needs.
Page speed: Search engines have started to prioritize websites that provide a better user experience and part of that is having fast page speed. You can test your website speed using this free tool. Some quick ways to improve your page speed would be to minimize image file sizes and reduce the number of third-party scripts you have on your website. You may need to contact a website developer if you want to make bigger adjustments to your website.
Link building: Search engines use backlinks as a way to identify which websites are trustworthy and authoritative. For example, if your website has a link from Forbes pointing to your blog article, it indicates that your blog has value. The more links you can gather (especially from high-quality websites) the more reasons search engines have to believe your website has value.
SEO and PR agencies can help you build your link profile. You can also contact other websites directly and do manual outreach. The best practice is to create content that people want to link to and the links will accumulate naturally. Content that typically performs well for link-building in the automotive industry includes how-to videos, guides, and tutorials.
Mobile friendly/UX: Have you ever been frustrated by a website on your phone that you can’t use because the buttons are too close together or it loads slowly? With the majority of your target audience using their phones to search for services, your SEO strategy needs to include a user and mobile-friendly website design.
Sitemaps: A sitemap is a file that you can add to your website to help guide search engine crawlers to your content. Think of it as a crawler roadmap for your website. This file can be useful if you don’t want certain parts of your website crawled or if you recently added new content and want it to be crawled quickly.
4. Local SEO
Google My Business: Google My Business (GMB) is a free Google business profile that showcases your company, services, contact info, logo, and more. An easy way to improve your local SEO is to keep this platform up-to-date with your contact information, website, and hours of operation. If a potential customer searches “auto repair shop near me” your GMB listing indicates to Google if you service that area and helps you rank for their search.
Bonus tip: Make it easy for customers to leave reviews on your GMB profile as extra proof that you run a quality automotive repair shop. Some auto shops add a QR code on the front desk or on receipts directing customers on how to leave reviews. Make sure to respond to negative and positive reviews with professionalism. First impressions matter; potential clients often research reviews before selecting a shop.
Directories: Directories are popular aggregation review platforms like Yelp, Consumer Reports, BBB, and Yellow Pages. Claiming your business profiles and updating them with your relevant information can help some potential clients find your auto repair business. Make sure your phone number, address and website are all up to date within each directory.
Location pages: Adding your address and directions to your website can help search engines understand where you are located and aid in pairing you with appropriate local queries. Another tactic is to make sure your website content mentions your city to further boost this effort.
5. SEO tools
Paid tools: There is no shortage of SEO software/tools to help you upgrade your auto repair SEO strategy. These tools typically have a free version but they are limited in functionality and you will need to upgrade if you have larger websites. Some of the top options include Ahrefs, Semrush, and seoClarity.
Free tools: If you have a smaller website you may be able to get by with these free tools. Some of the top free SEO tools include Google Search Console, PageSpeed Insights, and free versions of Ahrefs and Semrush.
Tracking/monitoring: After making updates to your website and overall SEO strategy it is important to track your progress and KPIs like clicks, traffic, impressions, CTR and others that may be relevant to your auto repair business. You can build free tracking dashboards in Google Analytics or Google Looker Studio.
Bonus tip: Google and other search engines regularly update their algorithms so keep an eye out for volatility during these updates.
How long does it take for search engine optimization to work?
While some SEO tactics will start working immediately, larger and more consistent progress will be seen within 3-6 months if implemented correctly. Typically, this progress is seen as part of a “snowball” effect where multiple small optimizations will snowball into larger results over time.
Ranking on the first page of Google can take time but it often depends on how many competitors are in your area. All worthwhile marketing strategies take time and SEO is no different.
Final thoughts
Search engine optimization is an important tactic to drive more traffic and customers for your auto repair business. Keep in mind that SEO is one of many marketing tactics and should be part of a larger marketing strategy. To be successful in automotive shop marketing you will also need to explore other channels like social media, email, paid advertising, and traditional marketing.
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