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.
So when you're wondering what's going on with that SUV sitting in your shop's pickup lot for the last two weeks, you can see if it is awaiting customer approval or if parts are still on the way.
Within Tekmetric, Repair Orders flow through your Job Board, visually representing your shop's overall workflow in three columns: “Estimates,” “Work-In-Progress” and “Completed.”
The idea is for service advisors, general managers, shop owners, and even Technicians, to gain a birds-eye view of everything happening in your shop with just a quick glance. Everyone is responsible for their tasks, every step of the process is accounted for, and it can all easily be tracked and managed in a simplified workflow.
We also understand that some shops may want a little extra flexibility, and maybe there’s some extra level of detail you would like represented visually on your job board. That’s where Tekmetric’s RO Labels come in.
As we progress further into the new quarter, it’s important to take stock of the strides Tekmetric has made, as well as build the momentum to continue providing top-notch service and innovative solutions. From launching groundbreaking new features and building deeper connections in the industry, Tekmetric has kept our foot on the gas in the first quarter of 2024 to measure up – in every way we can.
Supporting Shops with Innovative Updates and Features
At Tekmetric, it’s important for us to provide solutions that are relevant to your shop’s needs. Over the last quarter, we focused our efforts on providing updates and features that you have requested based on what you’re seeing in the field. Whether partnering with another industry powerhouse or helping strengthen reporting capabilities, we launched solutions that help your shop operate more effectively and grow your bottom line.
Sometimes two is better than one – and Tekmetric aims to integrate with a variety of industry solutions so you can access a wealth of information in our comprehensive system. For example, earlier this year we partnered with Advance Auto Parts to integrate MotoVisuals, a cloud-based library designed to provide easy-to-understand overviews of repairs to customers. We accompanied this new integration with a webinar led by Tekmetric’s very own P.J. Leslie and David Lyddall, director of MotoVisuals for Advance Auto Parts. Both speakers discussed their commitment to helping create an excellent customer experience and build customer satisfaction through this solution. The MotoVisuals integration is just one example of how we can continue to measure up together.
In addition to integrations, we also added new reports and features designed to make your life easier and help your shop run more efficiently. For example, the Multi-Shop Report offers a comprehensive breakdown of payments across all locations, empowering owners to make informed comparisons and strategic decisions. Additionally, the Labor Sales Report was created to provide details of labor sales when looking at employee pay, providing an additional option to accompany the information available in our Tech Report. Finally, our Itemized Tire Tax feature helps ensure that tire shops can provide clear and itemized tax information according to state legislation.
We also recognize the importance of community in the auto repair industry. As we move forward with the industry’s top trends and new product features, we have continued to invest in building connections and stronger relationships with both industry partners and you – our partner shops.
Building Deeper Connections in the Industry
At Tekmetric, we believe in the importance of long-term investments, whether that is in the product we provide, the people we hire or industry trends that we partake in. Our connection to our customers and desire to serve shop owners drives our day-to-day and motivates us to continue striving for excellence.
One of the ways in which we prioritize connection is through the various events we attend year-round across the country. This allows us to have conversations and build deeper relationships with you – the shops that we serve. Additionally, it gives us a chance to discuss what you’re seeing in the field, as well as what features, products and services you need to succeed. These conversations drive our product innovation process, allowing us to continue providing solutions that support your shop’s growth and forward momentum.
At the VISION Hi-Tech Training & Expo 2024, P.J. Leslie, Head of Business Development, was featured on the Kaizen CPAs + Advisors podcast where he gave insight on using Tekmetric’s numbers to continue enhancing the customer experience. Additionally, in March, we sprang forward, with our clocks and innovations, to the Automotive Training Institute (ATI) Super Conference in Grapevine, Texas from March 13-16. At each event, our conversations with shop owners and technicians brought the need for streamlined processes and enhanced customer communication to the forefront. Both needs are priorities that Tekmetric will continue to build on in each quarter of 2024.
In addition to attending events, Tekmetric also aims to support our shop owners in sharing their own insights and lessons about measuring up in today’s industry. For example, this quarter Brian Jesko, the owner of Trinity Auto Haus, joined us for a webinar, “From Technician to Multi-Shop Owner,” where he shared his journey of scaling his local shop and generating countless 5-star Google reviews to attract more business. One of the biggest takeaways from his webinar is the importance of holding a competitive advantage in service experience as opposed to solely relying on competitive pricing.
Continuing Our Forward Motion to Provide Great Solutions
Tekmetric’s product innovation and strong industry connections have paved the way for us to continue our forward motion into 2024 and beyond. This ongoing progress was recently recognized by G2, as they honored Tekmetric with the title of Top-Notch Auto Repair Software for the third year in a row. Talk about a three-peat! Receiving this award three years in a row is an incredible honor and a testament to both our team’s commitment to providing the solutions you need, and the support and feedback we received from you – our shop owners. However, our work does not stop at this recognition. In fact, we are more motivated than ever to continue bringing valuable solutions to meet your needs as we progress through 2024.
As we entered the year, we took a close look at the upcoming trends to set ourselves up for success while also providing valuable insights to the rest of the industry. After all, we’re all in this together. You may have seen some of these insights from our CEO and Founder, Sunil Patel, in his guest article, “Leveraging emerging industry trends in 2024,” with Vehicle Service Pros discussing 2024 industry trends. As a former shop owner himself, Sunil has a deep understanding of how to use industry trends to your shop’s advantage, and his article includes actionable advice on how to apply growth-oriented strategies, maximize value with efficient data use and meet customer needs with modern solutions – all while remaining poised for growth.
Measuring Up with Tekmetric in 2024
As we continue into Q2 and beyond, Tekmetric aims to continue our momentum, looking ahead to the next solutions we can provide that support your goals as shop owners. We want to be a team that plays our A-game each quarter, and we are excited to continue working with you to take your business to the next level. Cheers to a great first quarter at Tekmetric!
Scaling your auto repair business requires moving beyond simple spreadsheets and paper repair orders. You need a robust shop management software that has enterprise-level features, centralized real-time reporting, and helps you provide a consistent customer experience across locations.
This guide breaks down the top enterprise software solutions for auto repair shops with 2+ locations.
Top 5 Enterprise Solutions for Shops With Multiple Locations
Finding the right software partner for your expanding shop is critical to your success. Below you will find our top overall picks for multi-shop operators (MSOs).
Multi-shop owners love Tekmetric because they can run their entire business, across all locations, from one platform. Featuring an all-in-one shop management solution with centralized real-time reporting, marketing, payments, and 70+ integrations, Tekmetric makes it easier for you to manage multiple locations. Why we picked Tekmetric:
Centralized reporting: Real-time dashboards enable you to see how each location is performing. You can track financials, employee performance, shop metrics, ARO, car count, and more.
All-in-one solution: Instead of switching between platforms, Tekmetric offers shop management, POS, and CRM in one place.
Company history: Built by a former shop owner, Tekmetric is often praised for ease of use, simple onboarding, reliable support, and listening to customer feedback.
Shop-Ware is designed to help you maintain consistency across multiple locations with unified customer history, reporting, and employee management features.
Why we picked Shop-Ware:
Reporting: Find the metrics that matter the most to your business.
Customer experience: Standardize your customer experience across locations.
Employee management: Easily compare employee productivity and manage permission levels.
Protractor is a popular shop management system for shops with multiple locations or franchises. Protractor offers advanced reporting features and shop management features so you can run your shop confidently.
Why we picked Protractor:
Reporting: Performance tracking, insights, and employee productivity monitoring.
Fullbay specializes in heavy-duty truck and trailer repair shops. Most standard shop software struggles with the complexity of fleet maintenance, but Fullbay was built for it.
Why we picked Fullbay:
Centralized inventory: Track parts and inventory across all locations.
Integrations: Fullbay has plenty of industry interrogations to keep your shop running.
If you are looking for a lighter software solution, Garage360 might be a good option for your shop. Supporting quick-lube, body/collision, and fleet, Garage360 can be used in a variety of shops.
Why we picked Garage360:
Versatile: Can be used in multiple shop types.
Permission control: Manage your employee permissions across locations.
Reporting: Pull the data you need to make informed decisions.
Pricing: Starting at $79/mo (billed annually).
Which software features should I look for when I manage multiple shops?
If you are comparing software options for your chain operations, these are the modern features to look for:
Centralized real-time reporting: Tired of trying to guess how each shop location is performing? Pick a software that can pull the data you need from any location or aggregate it across shop locations within a user-friendly dashboard.
Inventory/parts management: Tracking parts can be difficult as you expand. Find a solution that can track inventory levels and transfer parts as needed across locations.
Standardized workflows: Having standard workflows streamlines your shop operations. Select a software that can standardize your operations, prices, and procedures.
Employee permissions:Managing employee permissions is critical to ensuring the safety of your company data and holding employees accountable. Pick a software that keeps your business secure.
Single vs. Multi-Location Management: What are the differences?
Why can’t you just use a single-shop system? The difference lies in automation and control.
Standardization: In a multi-location setup, you need to ensure that technicians at every shop are following the same workflow and procedures so your customer experience is consistent.
Visibility: Single shop software may have reporting, but you need to be able to compare metrics between shops to make informed business decisions.
Security: Multi-shop software provides employee permission settings and typically comes with advanced data protection.
Pricing: Most single-shop software options will charge you per user or limit repair orders. Enterprise software will grow with you and charge based on the number of locations.
Final Thoughts
Choosing an enterprise-level auto repair shop software isn't just about features; it's about finding a partner that helps you maintain a consistent customer experience as you grow. Whether you prioritize inventory management, deep metrics, or standard procedures, ensure you find a solution that can grow with you.
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