Why Match Parts from Repair Orders on Purchase Orders?

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March 12, 2024

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Read time: 3 min

The Art of Knowing Where Everything Is

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:

  1. Wait for the parts bills to come in and trust that you’re being charged the correct amount, or
  2. 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. Without a 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.

👉 Ready to grow your automotive business? [Book a personalized Tekmetric Demo Here]

FAQ

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Selecting the right business name for your auto repair shop can be a challenging task. Your business name will be the first impression your potential customers have of your shop and will determine how memorable your shop will be. Use the ideas below to brainstorm the perfect name for your auto repair business.

A list of the best mechanic shop names.

Creative auto repair shop names

  • On The Road Again Repairs
  • NextGear Auto Service
  • Check Engine Repairs
  • Torque of the Town
  • The Engine Room
  • Chrome & Steel Auto Care
  • Axle & Alloy Repair Co.
  • Peak Performance Garage
  • Smooth Ride Mechanics
  • Driven Dynamics
  • Velocity Auto Shop
  • ClearPath Automotive

Tek-Tip: Struggling to find the perfect shop name? Tekmetric offers a free automotive shop name generator to help you create the perfect business name.

Funny automotive repair shop names

  • The Brake-Up Shop
  • Motor Mouth Mechanics
  • Hit & Run Body Shop
  • Exhausted Mechanics
  • Hot Wife Automotive A/C Repair
  • Don’t Tread On Me Auto
  • The Laughing Lugnuts Auto Repair
  • Wheel Be Alright Auto Repairs
  • Motor Mouth LLC
  • Rust in Peace Repairs

Tek-Tip: Have you thought about how you will market your new business? Learn more about Tekmetric Marketing for all automotive marketing needs including websites, CRM, online reviews, and more.

Cool mechanic shop names

  • The Car Whisperers LLC
  • RoadReady Mechanics
  • StreetSmart Garage
  • GearShift Garage
  • Velocity Motors
  • Gearhead Garage
  • The Repair Authority
  • PitStop Pros
  • Full Throttle Repair
  • Trackside Garage

Unique and catchy names

  • Car Medic Garage
  • Nuts & Bolts Car Mechanics
  • Unleaded Car Repair
  • Honest Engine Repair
  • Auto Barn Car Care
  • Iron Horse Garage
  • Blue Ridge Auto Works
  • RevSync Mechanics
  • The Auto Vault
  • Summit Auto Haven
  • Rust & Revive Repair

Simple auto shop name ideas

  • Car Surgeons
  • The Car Guys
  • Engine Experts
  • Quick Fix Automotive Repairs
  • The Brake Brothers
  • One Stop Auto Shop
  • Auto Solutions Inc.
  • Pit Stop Garage
  • Turbo Tires & More
  • Wrench Wizards

Service-Specific shop names

  • Brake Check Repairs
  • Oil Be Back Automotive Repairs
  • Vivid Vehicle Body Shop
  • 1 Hour Heat and A/C Auto Repairs
  • Battery Solutions LLC
  • Actually Discounted Tires
  • Renew Collision Center
  • 30min Oil Change Shop
  • Restored Right Auto Body Shop

Mobile mechanic business names

  • Repair on Wheels
  • Roaming Automotive Repairs
  • One Stop Repair Shop
  • One Call Repairs
  • Wheels On The Way
  • (Insert last name) Mobile Mechanic
  • The Leaky Gasket Mobile Repair
  • 1 Hour Mobile Mechanic
  • 24/7 Mobile Mechanic

How to select the right auto repair shop name

Once you have your list of potential shop names narrowed down, it is time to do a final round of research to make sure your name is legal, optimized and ready to launch. Check out our final 6 tips and tricks below.

1. Legal checks

Before you can launch your new automotive shop name, you should check for Trademarks by visiting the US Patent and Trademark Website. Simply search your pending business name to see if it is taken or if you can proceed.

2. SEO‍

Search engine optimization for auto repair shops is an important avenue for driving brand awareness and new customers. To maximize your new business name, aim to include common keywords like “automotive”, “repair”, and “shop”. Also, try to use local terms like “Houston” to help search engines know where your services are located. Lastly, check to see if any competitors are using a similar name and determine if your name will be unique enough.

3. Domain availability‍

GoDaddy can check if your new automotive repair shop name is available to use. You will also be able to see how much the domain name will cost and whether it would be cheaper to use a variation of your business name.

4. KISS

Keeping your new shop name simple will help you in the long run. Potential customers will find it easier to remember (and share via word of mouth) if you keep it short and simple. Plus, shorter business names are easier to fit on business cards, advertisements, and social media.

5. Marketing

Looking down the road, your new business name should fit within your overall automotive marketing strategy. Are you planning to use a certain logo or color scheme? Make sure your name fits the theme you are aiming for and attracts your target audience. If you plan to use social media marketing, check to see if your business name is available as a social handle.

6. Set the tone

Your name is likely your first impression with your customers. Once you are ready to launch, give it one more review to make sure it conveys the right brand identity and message. Lastly, have a friend or colleague offer feedback on your business name and see how it resonates with them.

7. Automotive business name generator

Tekmetric has developed a free AI-powered mechanic shop name generator tool to help you brainstorm new business name ideas. Our tool can also help you check for domain availability and provide logo design concepts.

Closing Thoughts

Finding the right name for your business is a daunting task and we hope this guide has helped you brainstorm new business name ideas and narrow down your list. We recommend taking the extra time to make the right choice up front so you don’t have to rebrand down the road. As always, there is wisdom to asking for feedback from your community. Select your top 5 names and ask for help picking the best shop name for your business.

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Traditionally, there are four pillars to an auto repair shop that all support one another: the shop owner, technicians, customers, and service advisors.

The integrity of the shop depends on each of these pillars in different ways. The shop owner needs to make the right calls and put the right systems in place for technicians and service advisors to do their jobs. Technicians must stay focused on repairs. And loyal customers keep the lights on.

By effectively leading your team, service advisors can support the other three pillars of the shop—and in turn, achieve balance and improve the quality of your job. Getting started in your Service Advisor career, or looking for some tips? Here’s how to lead your team with intention.

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