Frequently Asked Questions
Automotive Accounting – Frequently Asked Questions
In most cases, yes. The motor trade has its own quirks – VAT on vehicles, parts versus labour, deposits, trade-ins, and stock sitting on the floor. A general accountant might keep you compliant, but a specialist helps you actually understand where the money is being made and where it is leaking.
VAT depends on what you’re doing day to day.
Selling new cars, used cars, servicing, parts, warranties, or taking trade-ins all come with different VAT treatment. This is where mistakes usually happen. We make sure VAT is applied correctly from the start and filed properly, so there are no nasty surprises later.
Yes, and this is something we deal with regularly.
We make sure your purchase and sale records are right, the margin is calculated correctly, and the VAT return reflects the true position. Getting this wrong can cost real money, so it needs to be done carefully.
Parts, vehicles, and consumables need to be tracked properly.
We help you separate labour from parts, keep stock values realistic, and spot slow-moving items that are tying up cash. That way, the figures actually reflect how the business is performing.
Not if it’s set up properly.
We put a simple system in place so cash, card payments, and bank receipts all reconcile cleanly. That keeps your records tidy and avoids headaches if Revenue ever asks questions.
Yes.
We handle payroll for mechanics, admin staff, and management, including overtime, bonuses, and statutory deductions. Payslips go out on time, and Revenue submissions are handled correctly, without you having to worry about it.
That depends on your profits, risk level, and future plans.
Many garages start as sole traders and later move to a limited company as they grow. We walk you through the numbers first, so you can see whether it actually makes sense before making any changes.
We’re comfortable with all the main accounting systems.
That said, Xero paired with Hubdoc works extremely well for automotive businesses. It cuts down paperwork, keeps records clean, and saves a lot of time at month-end and year-end.
You won’t be left chasing.
We aim to respond to queries within 24 business hours, and you’ll deal with someone who understands how garages and motor businesses actually operate, not just someone reading figures off a screen.