In auto repair, there are many moving parts to keep track of—both the literal parts your shop uses to repair vehicles, and the parts of your business that determine your shop’s efficiency, security, and ability to grow. If you want your shop to flourish, it’s crucial to devote part of your business to keeping track of the parts you order.
Many shops track parts in terms of cost of goods sold. The parts you need for the job are included on every repair order, so it’s easy to see what parts your customers are paying for as long as you have a solid process for building repair orders.
But what about in terms of accounts payable? How does your shop track how much you’re spending for parts from the supplier?
Should You Use Purchase Orders or “Save Time?”
For your accounts payable, or determining how much you’ll owe your parts suppliers, there are typically two routes you can take:
Wait for the parts bills to come in and trust that you’re being charged the correct amount, or
Create a formal purchase order each and every time you order parts from a supplier.
The advantage of going with the first route is that you save a little bit of time; there’s no second step of reconciling the part you need to purchase on a purchase order. But the cons far outweigh this advantage—because this is where shops can start to lose money.
For example, your ROs may indicate that you have a 30% profit margin on parts, but if you don’t accrue your parts bill, you won’t know for sure if that’s the case until the parts bill hits your account. Suddenly, when the money gets taken out, your margins are razor-thin.
So, what happened?
Did a supplier charge too much? Were you double-charged? Was an unauthorized person ordering parts on your account? Was there theft?
It’s hard to tell if there is no paper trail or purchase order for you to look at.
If you’re not paying attention to your parts orders on the accounts payable side, you could be losing money, and it will typically take a large missing chunk of change for you to realize that something is wrong. Withouta paper trail, figuring out the problem is not only difficult but also extremely time consuming. Once you notice that there is a loss you can’t account for, all the “time saved” by skipping the purchase order step comes back in the form of time spent trying to figure out the issue.
By reconciling your parts orders on both repair orders and purchase orders, you can easily check to see what’s going on, protecting your shop from incidents where you are losing money due to overages, slip-ups, theft, and overcharges.
How to Build a Better Parts Ordering System
When it comes to tracking parts on repair orders and purchase orders, consistency is key. Shops that have strong, consistent processes and procedures—and follow them every single time—rarely have issues with leakage and theft; they instill habits in their team to keep careful track of all parts.
As long as your shop has a repeatable process for adding parts to repair orders and putting in purchase orders, you will be able to quickly identify any issues as soon as they crop up. Every service advisor and employee that orders parts and builds repair orders for customers should use the same method for filling out repair orders, creating purchase orders, and inputting this information into your shop management system and accounting system.
Create a standard process for each of the following:
How jobs get posted
How repair orders are built
How repair orders are approved
How parts orders are posted
How purchase orders are written and sent to suppliers
How purchase orders are approved
How parts and purchase data get analyzed
Instill Parts Ordering Best Practices with Tekmetric
Standard procedures for ordering parts and creating repair orders are built into Tekmetric. We give shops the tools and guardrails needed to effortlessly track parts throughout each step of the repair process.
From our intuitive repair order builder to our integrated parts ordering and inventory systems, we aim to align your team so that no money slips through the cracks. And our industry leading analytics and reporting tools allow you to keep track of your shop’s financial history in realtime.
This article was written with the guidance of automotive repair industry CPA Hunt Demarest of Paar, Melis, & Associates, P.C.
The most important features in auto repair shop management software are the ones that connect your business end-to-end: repair orders and estimates, digital vehicle inspections, parts ordering and inventory, integrated payments, and real-time reporting. If a system does those five things well, and keeps them in one place instead of five, it will vastly improve how your shop runs.
The hard part isn't finding software with a long feature list. It's telling the difference between features that move the needle in your bays and features that just look good in a sales demo. This guide breaks down the categories that matter, what each one actually does for your shop, and what to look for when you compare options.
1. Repair Orders and Estimates That Flow Together
What it is: The digital repair order (RO) is the backbone of the shop management system. Estimates should build fast — pulling in labor times and parts — and flow directly into the RO without rekeying anything.
Why it matters: This is where most of your team's wasted time hides. When an estimate becomes an RO in one click, and job templates drop in common parts and labor automatically, a service advisor can build a ticket in a fraction of the time. Over a full day of ROs, that adds up.
What to look for: Pre-built job templates, labor guide integration, and a clean estimate-to-authorization path. In Tekmetric, Smart Jobs allow advisers to build ROs from templates with parts and labor already attached, and estimates flow straight into the repair order.
Why it matters: Customers approve work they can see. A photo of a worn brake pad does more to earn trust — and a yes — than a line item on a paper estimate. That trust is what lifts approval rates and average repair order value, and it's why DVIs are one of the few features worth treating as non-negotiable.
What to look for: Photo and video capture, quick send-to-customer, and digital authorization built into the same flow. Tekmetric shops have reported meaningful ARO gains from strong DVI use, with ARO value rising from a $612 baseline to $741 for shops that use DVIs consistently.
3. Parts Ordering and Inventory
What it is: Parts management covers two things: knowing what's on your shelf, and ordering what isn't — ideally without leaving the repair order.
Why it matters: Parts are where margin quietly leaks out of a shop. Wrong parts, duplicate orders, and time lost bouncing among supplier tabs all cost money. When ordering is built into the RO and inventory updates as parts are used, your team stays in one screen and your margins stay protected.
What to look for: Integrated ordering through the supplier networks you already use, real-time stock visibility, and a parts matrix to keep pricing consistent. Tekmetric connects to parts suppliers so technicians can order parts as they diagnose issues.
4. Integrated Payments
What it is: Payments that live inside the shop management system, so checkout, reconciliation, and reporting all run off the same data.
Why it matters: A faster checkout is a better customer experience, and integrated payments mean you're not hand-matching a separate processor's statements at the end of the day. Options like text-to-pay and financing also help customers say yes to bigger jobs.
What to look for: Card and digital wallet acceptance, Text-to-Pay, built-in reconciliation, and financing options — all reporting into one place. In Tekmetric, payments are a built-in add-on rather than bolted on. There is no separate terminal, no third-party login, and no support ticket when something does not sync. Refunds, disputes, and deposits are handled in the same platform shops use to run repair orders.
Tekmetric customers have access to all of this: Buy Now, Pay Later partners like Affirm, Klarna, and Sunbit make bigger repairs affordable for customers, and shops offering flexible consumer financing can increase average repair order value by up to three times. Add same-day setup, next-day funding, and fraud protection through Stripe Radar, and payments stop being a separate system to manage. They become one more step in a workflow shops already know.
5. Real-Time Reporting
What it is: Live visibility into the numbers that tell you how the shop is running — average repair order, car count, gross profit, technician productivity — without waiting for month-end.
Why it matters: You can't fix what you can't see. Real-time reporting is what turns a platform from a digital filing cabinet into a tool you actually run the business with. It's also the feature owners underrate at buying time and rely on most six months in.
What to look for: Key metrics on a dashboard, the ability to drill into a technician or a location, and reporting you can trust without exporting to a spreadsheet. Tekmetric surfaces these metrics in real time from the shop counter or from home.
The Features That Tie It All Together
Cloud-based access and a real mobile app
If the platform only lives on the computer at the front counter, half its value is stuck there. Cloud-based access means you can check the shop from home, and a real mobile app keeps technicians moving without walking back and forth to a terminal.
Integrations with the tools you already use
No platform does everything, so the ones that connect cleanly to accounting, parts suppliers, and marketing tools win. Tekmetric offers more than 70 integrations so you can build the workflow around your shop instead of the other way around.
How to Evaluate an Auto Repair Platform
A quick lens when you're comparing options:
Is it connected? The point of a platform is that repair orders, parts, payments, and reporting talk to each other.
Will your team actually use it? The best feature set loses to the one your advisors and technicians will adopt in a week, not a quarter.
Does it show you the numbers? If you can't see ARO, car count, and gross profit in real time, you're flying blind.
Can it grow with you? Your platform should grow with your business, especially for multi-shop operators.
Get those four right and the feature checklist mostly takes care of itself. The categories above — repair orders, DVI, parts and inventory, payments, and reporting — are the ones that decide whether your shop runs faster and more profitably or just runs the same way with a nicer screen.
The customer experience begins from the time vehicle owners bring in their car all the way to the final touchpoint: the payments portion. Integrated payments meet customers where they are in today’s digital market whether that means they can pay from their home, pick up their vehicle after hours or pay from states away for college students to pick up their car. Beyond approving an estimate and two-way texting, customers can pay wherever they are, whenever it is most convenient for them. Integrated payments facilitate shop efficiency, improve the customer experience and meet customers where they need to be.
1. Facilitate shop efficiency
Integrated payments help the shop run more efficiently with a visible, centralized location. Service advisors maximize the shop’s workflow and drive the bottom line because they can complete more repairs due to efficiency. Integrated payments allow customers to pay without being at the shop or needing a physical credit card. Forgot your credit card at home? Not a problem!
Tekmetric’s text- to-pay feature allows your customers to pay anytime, from anywhere - whether they’re a busy professional who needs to pick up after hours or a parent paying for repairs for their college student. Text-to-Pay allows you to get the repair done and be able to pay for it without a major disruption to your daily routine or needing a physical credit card to make a payment.
2. Improve the customer experience
Along with facilitating shop efficiency, integrated payments streamline the automotive customer experience with a unique opportunity to drive revenue to the shop while also providing a value-added experience to the customer. Customers will remember how convenient (or inconvenient) it was to pay during the final touchpoint of the auto repair process.
In addition to text-to-pay,integrated payments offer flexible, forward-thinking solutions that allow shops to save time and effort when managing funds and customer payments. Shop owners can share invoices and accept payments via text and email, enabling the customer to pay directly from their smartphone and pick up the vehicle when it is convenient for them.
3. Meet customers where they want to be
Most auto repair purchases are surprise purchases that not even the best budgeter can anticipate. With integrated payments, Tekmetric caters to the customer’s budget and needs. Not the other way around. Repairs can be a stressful experience so why not make the customer’s life easier by allowing them to pay from home, from states away or in installments?
Offering Buy Now, Pay Later options, allows you to meet the customer where they are financially by providing installment payment options. When your customers need to get the repair done but do not have the budget to be able to pay for it in full in one sitting, BNPL meets your customer where they are financially while also ensuring the safety of the vehicle owner by getting the repair done.
Digital payments are necessary for auto repair shops in the modern digital market. By implementing customer-centric digital solutions, you can significantly improve your shop’s customer experience by meeting customers where they are, reaching new ones and increasing your shop’s workflow efficiency. Making the last touchpoint of the experience more convenient creates a positive, lasting impression on the vehicle owner and creates trust with your repair shop – encouraging them to become a loyal customer and generate repeat business or referrals.
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.
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.
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