Repair shops buy a lot, from a lot of suppliers, and sell it back in small pieces. That’s where the books usually drift.
Parts suppliers send statements full of invoices, credits and returns. If those aren’t matched to your bills every month, you end up paying twice, missing a credit, or arguing about a balance. Matching supplier statements is the payables side I spent years doing.
Each work order mixes parts and labour. Recording them consistently, with GST on both when you’re registered, means your sales and your GST return agree with each other.
Hoists, diagnostic equipment and big tool purchases aren’t ordinary expenses; they’re assets that are written off over time. I record them with the purchase date and details your tax preparer needs to treat them correctly.
If you keep parts on the shelf, the stock you’re holding at year-end affects your profit. A year-end count, recorded properly, is part of a clean year-end package.
Licensing and tax rules that affect a shop’s paperwork, in plain English.
Licensing doesn’t stop at AMVIC. The Town of Pincher Creek, for example, notes that automotive and RV repair businesses need provincial approval as well as a town business licence, and Taber points vehicle sellers to AMVIC. In Lethbridge, every business needs a city licence, and licences run January 1 to December 31.
Whether your bays are in one of north Lethbridge’s industrial parks or on a main street in a nearby town, the books work the same way: remote by default, and I can visit if you’d rather go through a stack of statements in person.
If you’re a GST registrant, both parts and labour are generally taxable at 5% in Alberta, and there’s no PST. Recording them consistently keeps your sales and your GST return in agreement.
Yes. That’s a core part of my monthly bookkeeping: each supplier statement matched to your bills, payments and credits, so you only pay what you actually owe.
Automotive repair businesses in Alberta are licensed by AMVIC. Their application asks for municipal approval, a trade certificate, ID, a police information check and liability insurance. AMVIC is the place to confirm what applies to your shop.
I record it as an asset, with the purchase date and cost, rather than as a regular expense. How it’s written off over the years is then decided by whoever prepares your tax return.
Tell me where things stand, even if it’s messy, and I’ll tell you honestly what it’ll take to catch up and keep it that way. Every quote is confirmed after a free review of your books.
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